A Small Business Owner's Guide for 2025
If you own a small business in Nigeria, you probably considered quitting at least 6 times this year. Whether or not you did, keep reading.
If 10 Nigerian business owners were asked how their year was business-wise, the answers would be diverse due to location, scale, industry, etc.
However, one thing we are certain would be consistent across the board is that Nigerian businesses struggled immensely in 2024. Especially small businesses.
Keeping a business afloat amid one-of-a-kind inflation, a plunging exchange rate, a petrol price surge, irregular power supply, and a general plateau of consumer purchasing power, is not for the faint-hearted.
Some businesses made a painful decision to discontinue operations due to these conditions. On the other hand, many Nigerian businesses have stuck to their guns and preserved them.
Wherever you fall on the spectrum of this as a business owner, please know that we are in awe of your bravery.
2025 is on the horizon and the handwriting on the wall is clear; businesses must be innovative to thrive and prosper in the coming year. Change is necessary.
In this blog post, we recommend five impactful actions for small businesses now in preparation for 2025.
Reevaluate Your Business Plan and Strategy
Nigeria’s business landscape is changing rapidly, and businesses can only survive by changing too.
Business owners need to champion a 360° overhaul of their business strategy, tweaking it to reflect the current realities of their industry and customers.
For example, if you are a gadget vendor that previously operated on a cash-and-carry basis, an integral part of your new strategy should be a partnership with a BNPL (Buy Now, Pay Later) provider for potential customers who may need it.
Go Ham on Advertisement
Maybe not on LED billboards all over your city, but you must be heavily invested in advertising your business in 2025.
Many small businesses gain traction from repeat customers and referrals, so little to no effort is put into advertisement for customer acquisition.
If you struggle to identify what type of advertising your business should engage in based on your target audience and budget, the first thing you need to do is create a survey that you’ll share with your existing and potential customers to get all the answers you seek.
You can get started and create your survey here.
Get Insurance
In 2022, Gbenga Ismail, the Vice President of the Lagos Chamber of Commerce and Industry (LCCI), revealed that only 0.5% of small businesses in Nigeria have business insurance coverage.
That number has plateaued over the last two years because SMEs don’t prioritize insurance and consider it a luxury.
As the business landscape in Nigeria evolves in 2025, it becomes increasingly pertinent for SMEs to have insurance coverage - especially business and health insurance.
With state government mandates on employee health insurance and insurance-dependent financing opportunities for SMEs, small businesses with insurance have an unfair edge over the ones without it.
If you are in search of an excellent insurance provider that offers you affordable, flexible, and reliable business insurance, Casava is perfect for you.
You can get started here today!
Invest in Partnerships and Networking
A recurring mistake many small business owners make is neglecting networking because of the perception that it is reserved for more established businesses.
When small business owners network, they discover other businesses with complementary services or products that are valuable to their business.
This is how many successful partnerships are born.
In 2025, seize any opportunity to join a business-related community or association and attend trade fairs and other events where businesses are present.
Try Something New
There are many constraints on doing business in Nigeria, which causes many SMEs to conduct their business linearly, never thinking outside the box.
That needs to stop in 2024! Creativity is necessary for success in business in 2025.
Spend time analyzing your customers in totality - their needs, wants, and aspirations.
This way, you’ll discover inexpensive and minuscule ways to elevate customer satisfaction or improve brand perception.
So, It’s Up To You
According to the Small and Medium Enterprises Development Agency (SMEDAN), SMEs account for up to 48% of Nigeria’s GDP and are responsible for up to 50% of the nation’s industrial employment.
Your small business is important.
Scaling your business in the new year is very feasible. You just have to start preparing now!