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How To Enter A Competitive Market And Beat The Competition Successfully In Nigeria

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How To Enter A Competitive Market And Beat The Competition Successfully In Nigeria

enter a competitive market

As an entrepreneur, it is not an easy feat to enter a competitive market and beat the already existing competitors in the market. With the rate at which technology is advancing, the competitive landscape of the businesses has evolved in an unprecedented manner.

In any business establishment, your market position is very vital to your success. On average, business owners build their product line or services first before focusing on the marketing aspect. When you want to enter a competitive market, it is very imperative that you design your product position into the product itself.

There is a very high chance that adding it at the later stage might not have the best result. 

Also related: How to improve business performance

The integral thing here is that if you are targeting an industry that already has big-name players, then you must position your business or company in a way that it will gain traction.

The purpose of this article is to guide you on how to strategically position your product, service, or solution in a crowded or competitive market. Before entering an existing market, you need to ensure that you have got all your cards in order.

If you fail to plan, and when you enter a competitive market, there is a higher chance that you will be out of business even before you started. Whatever you do, it is imperative that understand how to sell in a competitive market. 

Essential Tips to Enter a Competitive Market

Now let us look at those essential things you must do to break into a competitive market. 

  •       You need to be selective when choosing your audience

When entering an existing market with much competition, you must try to identify a segment of the market to cater to. If your competitors are providing for the whole market audience, you don’t have to go on a head-on collision with them. It is always advisable that you craft your own product line or solution directed to a particular niche.

You need to pay attention to the niche which your competitors are neglecting or ignoring. As a newcomer in the business space, it will be counterproductive to try to provide for the entire market audience. You need to carefully select your audience and then grow your influence from there. 

  •       Study the market competition 

As you launch your business in an already existing market, ensure that you have carried out a robust and critical study of the competition. Understand the actions and inactions of your business competition. There is no practical way for you to enter a competitive market and succeed without taking the time to study your competition.

As a young entrepreneur, it will be suicidal to jump into a business venture without studying the competition. By studying your competition, you will get ideas on how you want your business to go. 

  •       Ensure that you have a solid team

When you are considering how to break into a competitive market, having a solid team is indispensable and very essential. There is the saying that two good heads are better than one, so you need to build a team that will help you conquer the market. To build a great team, you must develop a value-added networking strategy.

You need to ask yourself what reason you are giving to people to make them work with you. When you focus on adding value to a relationship, you will develop a stronger networking base.

What are the things that make you and the way you operate differently for the others? Apply this mentality to everyone that you come across in the course of building your business team. 

The success of your business, to a very great extent, lies with the quality of your team and how dedicated they are to their work.

  •       Highly focused marketing

When trying to enter into a competitive market, how you promote your business is essential and central to the success of your business. One a first thought, one can pick any marketing strategy and run his business with it.

Well, this is a recipe for disaster, and you need to be very careful at this stage in your business planning. When you are trying to sell in a competitive market, you must engage a very good marketing strategy that will be effective and result-oriented.

You must know who your target market is and what your business goals are. The better you are with your marketing strategy, the more business deals that will come your way. 

  •       Deliver a better product at a relatively low price

When entering an existing market, you don’t come with a mediocre product, especially below your competitors. You need to give your target market a reason to let go of the competition and patronize your products.

Even when your products are top-notch, try to put them at a price that is slightly lower than the competition but not one that will jeopardize your profit margin.

So, when you deliver better products and services than your competitors, it makes it much easier to sell a competitive market. 

See: How to build a business system that will increase productivity 

Conclusion

 Every entrepreneur must understand that entering an existing market requires more than just having a product to sell. There is a need for you to know the competition, streamline your target market, and build a great team. 

I would love to get your take on the topic, kindly make use of the comment section provided below.

 

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Visionary, and Passionate entrepreneur who believes that greatness lies not in what you see, rather, it depends majorly on how you see. I'm that diligent and determined guy that sees things very differently. Let's make a difference people.

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10 Best Loans Platforms In Nigeria Without Collateral

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Best Loans Platforms In Nigeria Without Collateral

A loan is money given to someone or businesses to cater to its financial needs. Most lenders need some form of collateral as security, before giving out loans.

Not every Nigerian can provide substantial collateral in order to receive loans, this is where loans without collateral comes in. Thankfully, there are now online platforms where individuals and businesses can apply for loans without the need to provide collaterals.

One major problem businesses face in Nigeria is the unavailability of capital. With these innovative online platforms, lenders can assess applicants and their ability to pay back the loans within the given time frame, and then go on to approve certain amounts of money for loan, based on their assessments.

Best Loans Platforms In Nigeria Without Collateral

One of the Best Loans Platforms In Nigeria Without Collateral, FASTCREDIT

Now, let me review ten most popular collateral-free loan platforms in Nigeria for individuals and small businesses.

  1. PAYLATER

Paylater is an online platform that provides loans to small businesses and individuals to cover urgent needs or unexpected expenses.

Clients can access up to N500, 000 worth of loan without collateral. Funds are delivered within 1 – 3 working days once approved. Endeavour to repay your loan on time to help increase your credit limits and grant you access to higher loan sums in subsequent loan applications.

  1. LYDIA.CO

This online platform gives businesses access to funding. LYDIA.CO Offers unsecured loans ranging from $500 to $15,000 to SMEs.

According to the founders, Lidya uses technology and algorithm for risk assessment that allows them offer financial services to their clients at low cost.

  1. QUICKCHECK

QuickCheck is an online lending outlet for small businesses and individuals. It helps individuals and small businesses to access financial credit by using mobile technology

According to the platform, customers can quickly and easily receive loans of up to N30, 000 without any collateral to repay within 15 – 30 days.

  1. SMEDAN

SMEDAN is more or less a federal government of Nigeria loan service or a government-backed enterprise for Small and Medium Enterprises (SMEs), hence the name (SMEDAN Small and Medium Enterprises Development Agency).

They offer quick and easy business loans to SMEs in need of funding. Their main aim is to promote entrepreneurship and provide startup capitals for businesses in Nigeria

SMEDAN also provides hands-on training and support to business owners. If you’re looking to apply for SMEDAN loan, then visit SMEDAN website and apply on the application portal – https://smedan.gov.ng/.

  1. AELLA-CREDIT

AELLA-CREDIT has been creating mediums to make funds easily accessible to individuals in Nigeria. The company is associated with 3 leading Credit Bureau Agencies in Nigeria to provide timely and affordable loans to clients. Employee empowerment and lending for business startup is the main focus of AELLA-CREDIT.

AELLA-CREDIT employs credit scoring algorithm, built after five years of market data and analysis had been gathered by the team, to assess the creditworthiness of applicants. The algorithm processes applicants’ eligibility by taking social and demographic factors as well as debit to income ratio of the applicants, into consideration.

  1. SPECTA

Specta is an online lending outlet that offers loans of up to N5 million in one deal, within the space of five minutes, without paperwork, collateral, or visit to any office. They enable users to cater for any urgent business or personal need, whenever and wherever.

Specta offers two loan services, which are (1) MySpecta which provides loan services for individuals and (2) Specta4Business which provides loan services for corporate and business owners.

  1. KIAKIA.CO

KIAKIA, taken from the Nigerian pidgin means “fast-fast” is an online lending platform for businesses in Nigeria. They employ the use of machine learning, psychometric, digital forensics, big-data, for credit risk assessments and proprietary credit scoring algorithm to help them provide immediate and compatible loans to numerous individuals without credit information.

Their services are highly efficient and effective in addition to being very simple and fast, hence their name which was derived from a Nigerian language, meaning ‘fast-fast ‘.

  1. ZEDVANCE

Zedvance is a client finance company geared toward providing individuals with consumer credit. They offer loans up to N3 million under 24 hours.

Their services are particularly for salary earners, but you could apply if you’re a salary earner with a side business.

  1. FAST CREDIT

Loan application on FastCredit is backed by guarantors although the loan itself is collateral-free. The validity period for the loan is 6 months maximum. If you are a micro, small and medium enterprises (SMES), then you are eligible to apply for this loan and use the funds to enhance the growth of your business

  1. GROFIN

If you are a small and medium enterprises (SME) in Africa and the Middle East, you may want to consider GROFIN as your choice loan platform.

Looking to grow your business rapidly and you are confident that your business meets the necessary requirements? Then, try GROFIN. This may be the perfect fit for you.

Business can access loans ranging from US$100,000 to US$1.5 million through GROFIN. You need to contact GROFIN and get the requirements. Upon reviewing the requirements and your business meets those requirements, go ahead and apply for the loan online on GROFIN website – https://grofin.com/business-loans/.

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How To Start Keke NAPEP (Tri-Cycle) Business In Nigeria

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Mass Transportation by Tricycles popularly known as “Keke NAPEP” was introduced on November 6, 2002, by the former president of Nigeria, Olusegun Obasanjo, as part of the government’s poverty alleviation programme called, “National Poverty Eradication Programme (NAPEP)” in a 2001. Also, the introduction of “Keke NAPEP” was a strategy by the Government to meet the ever-increasing demands for public transportation in Nigeria.

Since its introduction, the Keke NAPEP has come become a source of income for many Nigerians. It also became a safer alternative to commercial motorbikes (Okada), which were banned in many places, and is used to convey people over short distances all over the country.

Most people in Nigeria prefer the commercial tricycles to Buses and Mini-buses because the commercial tricycles have the capacity to move into the nooks and crannies of a town faster and easier compared to Buses and Mini-buses.  For example, in 2008, the Lagos State government kicked off the Lagos Bus Rapid Transit System (BRT), thinking that the transport needs of Lagosians will finally be met. The reality on ground is that that is far from it. The BRTs only reduced the problem of poor transportation by a small amount. This is so because the BRT only catered for major parts Lagos State, especially Mainland and Island routes.

If the BRTs only served those parts of Lagos, we might then ask, how will people living outside these areas fair? Knowing that low income and horrible traffic will prevent many people from getting their own vehicles, many are left with no choice but to use privately-owned commercial vehicles for movements within the city? Yes. Here is where Keke NAPEP comes to the rescue.

Some Nigerian graduates without jobs have wholeheartedly accepted riding Keke as a business. They use it to raise money for self and family and see riding keke as a better alternative to staying at home doing nothing. Also, Keke NAPEP business creates opportunities for lucrative investments and helps to lessen the burden of the poor transport network in the country presently. So, would you like to start Keke NAPEP business and make money like others? Below is a breakdown of the how-to of Keke NAPEP business.

Now, there are two parts to the Keke NAPEP riding business: either you ride it yourself or you lease it to a rider.

keke napep business

Tricycle (keke NAPEP) conveying passengers to their destinations

Option 1: Leasing Your Tricycle to a Rider (Hire Purchase)

First, you have to get the Keke, register it and lease it out to a rider. See the breakdown of how this is done below.

Price of a new tricycle: ₦400,000

Registration with the Keke riders’ union: ₦5,000

The tricycle is leased at ₦720,000

Here, you will receive a weekly payment of ₦15,000 from the rider (or hire purchaser) for a period of 12 months, that is 48 weeks making it ₦15,000 x 48 = ₦720,000

Note that this is not a hard and fast rule: some terms and conditions may be applied in your situation and things may look a bit different with the hire purchaser you’re working with.

Registration with the NAPEP riders’ union allows you to enjoy some form of freedom, support and security.

Make sure that your hire purchaser is trustworthy, has a good track record and preferably has some referees under his belt.

Doubts have held some people back and stopped them from trying out this venture. If you want to test the waters, start with one tricycle. This will help you to know whether this business is something you can comfortably go into or not. However, the most lucrative thing to do is to buy as many as you can afford at the time because that will increase your remuneration in the long run. For example, if you lease five tricycles, you can expect up to ₦1,600,000 as returns in a year.

This price analysis and breakdown is based on the realities of Lagos State at this time.

Doing it Yourself

If you choose to ride the tricycle yourself, you will be very much impressed at the outcome. In a day, you can be making anything from ₦4,000-₦7,000, depending on the number of passengers you commute.

Apart from the ₦5,000 union registration fee, you’re also expected to pay between ₦500-₦1,000 daily (known as owo itaa). Part of this daily fee goes to the government’s coffers.

Tricycle maintenance is cheap, spare parts are readily available and fuel consumption is low. One thousand naira worth of fuel can take you a whole day if you have a good carburetor.

Always remember that maintenance is the key to a long-standing tricycle. So, maintain the vehicle regularly to lengthen is lifespan.

With ₦5,000 daily earnings while operating it yourself, you can easily earn ₦1.5 in a year (grossly calculated at ₦150,000 monthly) after expenses have been made.

After a year or more of doing this business, you can decide to continue, expand, or change your line of business.

Things to Note When Putting Your Tricycle for Hire Purchase

How soon you will receive your complete returns on the tricycle depends on the following factors:

  1. The status of the tricycle when you bought it. Was it new or second hand?
  2. Does your tricycle operate during the weekends? What is the money earned during those days for (maintenance money, etc.)?

How payments are made

  1. Hire purchase. In this method, the driver takes care of routine service, minor repairs, maintenance and fueling.
  2. Daily balance.

I will not advise you to lease your Keke NAPEP on daily balance.

There is no brother in business. Be wise and open your eyes.

Hire purchase is the preferred method of payment in the North and in most parts of the country. It is the best method of receiving returns for your tricycle(s).

In Niger and Katsina states for example, daily returns are between ₦2,000 and ₦3,000 for a new tricycle. For second hand tricycles, daily returns are negotiated, but in Niger State, ₦1,500-₦1,700/1,800 is the amount paid.

Note that these are just estimates based on the present realities.

In Lagos, riders pay between ₦2,000-₦3,500.

  1. Negotiated.
  2. Standard: paying double the price. This is most popular in the North for second hand tricycles.

That is all on Keke NAPEP and how to start and operate it successfully in Nigeria. I hope you learned from this? Leave a comment below and let me know what you think about this.

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10 Popular E-commerce Websites You Can Shop on in Nigeria

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The development of technology on a global scale brings everything closer to us, making things easier and faster, just like shopping. E-commerce is a fast-growing industry. Many businesses are tapping into and are now creating ecommerce websites to boost thier businesses.

E-commerce is a lucrative sector which every business should be taking advantage of today. However, if you are just starting out, your focus should be on how to attract customers to your online store. So, instead of launching your ecommerce website, it is better to “test the waters” on a known e-commerce platform first before creating and launching your ecommerce store.

ecommerce websites

Someone trying to make a purchase from an ecommerce website in Nigeria

Nigeria has a lot of e-commerce websites and it might be confusing while trying to pick one to start with. This list of the 10 most popular e-commerce websites in Nigeria will help you narrow your search and pick the one that is best suited to your needs.

  1. Jumia Nigeria

Nicknamed the ‘Amazon of Nigeria’, this online store is the most popular on this list. It is so popular that it garnered an Alexa report as being the most visited e-commerce website in Nigeria.

Established in 2012, Jumia is patronized by thousands of Nigerians and offers a marketplace where sellers can showcase all kinds of goods to the public. You may want to visit the site to see things for yourself.

  1. Konga

Konga is an e-commerce store that allows small and big businesses alike to sell their products on its site. It has enormous warehouses in major cities in Nigeria like Lagos, Abuja, and Port Harcourt to serve its customers easily. This is done in line with its vision to deliver goods “with speed and precision” to its customers.

  1. PayPorte

‘Nigeria’s preferred online retail store’ as it calls itself, Payporte was launched in 2014 as an online store to reach a wide audience that is not restricted by age or preferences. The retail giant also collaborates with small businesses and puts them in front of a wide audience. The company provides the needed logistics to reach their customers and assist them to succeed.

  1. VConnect

Known as Nigeria’s premier business listing website, Vconnect has also grown to an e-commerce store where it avails business owners the opportunity to sell their products. The website also facilitates payments and provides logistics for goods to get to their respective customers.

  1. Kara

This e-commerce store is one of the best in Nigeria, recording thousands of visitors daily. Kara offers a wide range of products from electronics, phones, to fashion items. Additionally, it hosts a marketplace where business owners can post products and sell to the public.

  1. Printivo Store

Printivo is an online shop that is specially designed to meet the needs of those that need printing materials. Bring the most popular in this niche, Printivo also gives users the chance to access free templates crafted by graphic designers.

It allows those in the print industry to make money off their designs by giving them a platform to display and sell their items.

  1. OLX Nigeria

OLX Nigeria is a classified advertisement website. Although an online e-commerce website, OLX Nigeria does not function as a regular e-commerce website. Instead, it gives users the opportunity to design and publish ads to their taste.

This way, buyers and sellers can interact with each other directly and easily. With the categorization of ads, each buyer or seller can go specifically to their area of interest and transact.

8. Jiji Nigeria

In 2014, Jiji came into being providing buyers and sellers with an easy way to connect and carry out transactions, under highly secure conditions.

Jiji Nigeria, in addition to being a classified advertisement website, goes a step further by giving users the opportunity to post ads on any product of their choice on the store.

  1. CartNG.

You can find virtually anything on CartNG. It is an amazing e-commerce website that can meet any of your need s. You can shop category by category on the site, and enjoy a speedy delivery in your order.

  1. Obiwezy

Obiwezy is an online e-commerce store that sells fairly used gadgets like phones, tablets, and laptops. Obiwezy was established in 2010. The intention behind its establishment was to provide users with goods and services at highly affordable prices. Doubtless, they have met this purpose.

Besides sales, Obiwezy also offers its customers technical support like the repair of damaged products, product advice, and recommendations.

So, there you have it on the 10 popular e-commerce websites in Nigeria. Go ahead and start shopping now.

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