By daily touch staff
Senior Business & Entrepreneurship Correspondent
LAGOS — Every year, thousands of Nigerians invest their savings into businesses that fail within a short period. In many cases, the problem is not a lack of hard work but choosing the wrong business or entering a market without asking the right questions.
Before investing your money or opening a new business, there are several important factors you should carefully evaluate. Asking the right questions early can save you money, reduce risk, and improve your chances of building a successful business.
Key Insight: A good business is not simply one that makes money today—it should still have strong demand years into the future.
1. Will This Business Still Be Relevant in the Next 10 Years?
Many businesses become popular because they are trendy, but trends eventually fade. Before investing, ask yourself whether customers will still need the product or service five to ten years from now.
Businesses built around essential needs such as food, healthcare, education, technology, transportation, construction, financial services, and everyday consumer products are generally more resilient than businesses driven purely by short-term trends.
Never confuse a temporary trend with a long-term business opportunity.
2. How Strong Is the Competition?
Every profitable business attracts competitors. Before opening your business, study the market carefully.
Ask yourself:
- How many businesses already offer the same product?
- Why do customers choose them?
- What can I offer that is different?
- Can I compete on quality, service, convenience, or price?
Competition is not always bad, but entering an overcrowded market without a clear advantage can make it difficult to survive.
3. Does the Business Solve a Real Problem?
Successful businesses solve problems that people face every day. Before investing, identify the problem your business is solving and whether customers are willing to pay for that solution.
The stronger the problem, the greater the opportunity. Businesses that satisfy genuine customer needs tend to survive economic challenges better than businesses selling products people can easily do without.
The businesses that last are usually those that make people's lives easier, save them time, reduce costs, or improve their quality of life.
Bonus Tips Before Investing
- Research your market before spending money.
- Start small if possible and test demand.
- Understand your costs and expected profits.
- Build an emergency reserve for difficult periods.
- Continue learning about your industry as markets change.
Conclusion
Opening a business in Nigeria requires more than capital and enthusiasm. Before investing, ask whether the business has long-term potential, whether you can compete effectively, and whether it solves a genuine customer problem. Answering these three questions honestly can help you avoid costly mistakes and build a business capable of growing for many years.
