Everyday we hear of new startups in Silicon Valley raising money for their businesses, Series A, B, C, etc.
However, not much is heard of Nigerian tech startups raising money and even when the money is raised, it is usually by VC firms outside the country.
This has led many to wonder how to successfully start a tech business and profit from it in a place like Nigeria.
Don’t do tech
Does it come as a surprise? No, it shouldn’t, and don’t take it in its literal sense.
For the business climate in Nigeria presently, startups that leverage on tech tend to have a higher success rate than those that are fully tech. This has partly been because of the high rate of cybercrime prevalent in the country.
Most people are still very skeptical about paying for businesses online except they are very trusted. That doesn’t mean you shouldn’t go fully into tech but at least you should know the level of risk you are taking.
Do not focus on instant profitability but growth
Even after raising money from friends, family or even PE firms, don’t think profits will come in the twinkling of an eye. Light-asset businesses like those involving tech usually take longer periods to break even, compared to the heavy-asset model.
However, if you focus on growing your customer base by measuring metrics that determine it and in the process, create strategic intents, at a certain point in time, profit will start coming in like there is no tomorrow, as some will say.
Leverage is an aspect of business that helps to ensure ultimate success. Try as much as possible to get the best hands on deck. Facebook CEO and Co-Founder, Mark Zuckerberg said earlier that ideas do not come fully formed but that does not mean you should start very small.
A business must be built on solid foundation. As a matter of fact, Facebook hired a Harvard graduate, Sheryl Sandberg to be their Chief Operating Officer (COO) during the early years of Facebook. Hence, this factor must not be overlooked.