Have you ever wondered how to start a software company in Nigeria? Do you want a step-by-step guide through it? I will advise you to hold on strongly to this article.
Someone can ask, what is a software company? It is a company that works on the creation of software, or selling, maintaining, and also repairing various. These programs or software can be used for the purpose of instruction, analysis, studying entertainment, carrying out several duties or tasks.
Some people may also wonder how lucrative this business is as a greater population, especially the older generation feels like work should always be physical. It is important to know that in the United States of America alone, the software business contributes a whopping $1 trillion to their economy. This is expected to get even higher as the years go by.
The software companies, as defined and explained above, make money from activities like charging for each transaction, license fees, the sales of products, maintenance and repair of errors in the system, and also contracts awarded by the government or other companies and much more.
This article will explore a step-by-step approach on how to start a software company in Nigeria.
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How to start a software company in Nigeria
1) Make a plan and choose a niche.
To know how to start a software company in Nigeria, you have to first understand the industry. This area is quite competitive and very vast. You have to analyze the market and consumption of clients. Conduct market research to know if the service you want to offer will be beneficial to the individuals in that geographical location. This is to avoid losses.
It is also necessary to speak with other software consultants and get their view, as with all other businesses. They can tell you if the product or service you are offering will be in demand in that area you are looking to set up.
If care is not taken, the phrase “Jack of all and master of none” will apply in this scenario. You will need to choose a sub-speciality and throw your all into it. The decision would like on if you have enough experience in that particular sub-speciality. You can decide if you want to launch a service company or a software product.
Types of software companies
- Software Products Companies
This company turns their ideas into software products and sell to other corporations or end-users. They also make money through regular upgrades that are made when their products are licensed and installed in peoples devices.
- Software Service Companies
The commodity or goods they offer are software-related services. They make money by getting contracts (government contracts inclusive) and give solutions to their customers who consult them on software related issues.
Different sub-specialities in the software business include
- Web Development Agency
- Quality Assurance And Testing Business
- Mobile App Development Company
- Software Repair And Maintenance Business
- Computer/Software Training Institutes
- Software Development/Engineering
- Software Sales
- Database Management Company
2) Acquire capital for your business
Now that you know the sub-speciality you want to go into, the next thing is to acquire capital for your business. It could be through your savings or getting investors or even getting a loan from the bank.
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3) Register your company
At this stage, you might want to get a lawyer and get his advice as regards registering the company. The company should be registered under the Corporate Affairs Commission in Nigeria. The various structures your business can take include partnerships, corporations, or sole proprietorships. Note each structure has a different tax system and filing structure.
After the registration process, you’d need to trademark or patent your services. Your lawyer can also help out with this step if you undertake it.
4) Rent / Organize a space
You will need to rent an office space to start-up or you can decide to use the basement of your home if you desire to start small. The size of your space also depends on the size of your company, the services you’d like to render and your equipment. You can enlarge your space with time.
5) Buying equipment
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After knowing how to start up your software company in Nigeria, you will need to get to work. Depending on your type of software company, you will need to begin buying equipment and products for your business. This includes Desktop computers or laptops, servers, data storage devices like hard disks and flash drives and then programming applications, and also antivirus packages.
After you are all set up and running, you will need to employ more hands as you cannot do the work alone. You will need to employ a receptionist, cleaner, computer operator, software specialist, App developer, Graphics designer and other job descriptions depending on your type of company.
One of the many keys to succeeding in a business venture is to publicize and get yourself out there. You can utilize word of mouth, flyers, radio jingles and television adverts, newspaper adverts, flex banners, and also social media. Don’t hesitate to publish your business at any opportunity you get.
How to get government projects for your Software Company
To qualify to bid for government projects in Nigeria, you must have the following
1) pension Commission (PENCOM) Compliance Certificate
2) BPP (Bureau of Public Procurement) Federal Contractor Certificate.
3) Industrial Training Fund certificate
4) National Social Insurance Trust Fund (NSITF) Compliance Certificate
5) Corporate Affairs Commission (CAC) Business Registration Certificate
Steps to get the project after starting your software company in Nigeria
1) Build a formidable portfolio
Highlight the previous projects you have executed. You just can’t go to bid for a contract without having done something similar. Your employer needs to know why he should trust you.
2) Look out for opportunities
Scout for opportunities using the internet and also contacting the Procurement department of the office. You can establish a rapport with them so you can be informed of an opening whenever it happens.
3) Prepare a proposal
When an opportunity surfaces, prepare your proposal for getting the job executed. It is important to prepare the proposal well as it will determine the success of the business when you are given.
4) Defend your bid.
This is usually done after they have gone through everything and you may defend it in front of some people. Therefore, confidence is key.
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5) Execute the project
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It is important to work with integrity and do the work well. This would put you in good graces.
This article explored how to start a software company in Nigeria. This might not be so easy as there could be other challenges along the line but I hope this was informative.