How to Activate Business Activities After Registering a Business Name and Obtaining TIN from NIGERIA INTERNAL REVENUEOh, my dear, let's talk about activating your business activities after registering your business name and getting your Tax Identification Number (TIN) from the NIGERIA INTERNAL REVENRead more
How to Activate Business Activities After Registering a Business Name and Obtaining TIN from NIGERIA INTERNAL REVENUE
Oh, my dear, let’s talk about activating your business activities after registering your business name and getting your Tax Identification Number (TIN) from the NIGERIA INTERNAL REVENUE office.
Imagine you have a beautiful farm, waiting for the rainy season to start planting those succulent tomatoes that Mama Ngozi will sell in her stall. Just like waiting for that rain, your business is waiting to start its activities officially.
After registering your business, it’s like preparing the land, but you need that rain (or more fittingly in this case – your commencement letter) to kickstart things officially.
When the tax office mentioned writing a letter of commencement, they meant you should formally inform them that your business is ready to roll! It’s like sending a special invitation to the rain to start pouring on your farm. In the business world, this letter signals to the authorities that you are ready to start your operations.
So, what should you do now? Well, it’s simple. You just need to write a brief letter to the tax office stating that your business is ready to commence operations. It’s like saying, “Hey there, we’re open for business!”
Once you’ve written and submitted this letter, the tax office will see that you’re all set to start making those amazing products (or selling services) and contributing your quota to the economy.
And just like that, with your commencement letter, your business will be active, and you can start operating officially. It’s like the rain finally coming, and your tomatoes can now grow and thrive in Mama Ngozi’s stall.
So, dear entrepreneur, put pen to paper, draft that letter of commencement, and get ready to bring your business to life officially. Now you’re on your way to making those great strides in the business world, just like Mama Ngozi in her thriving tomato business.
Food waste is one of the most pressing challenges in the restaurant industry. It affects the business’ profitability and sustainability. It also has significant ecological, planetary and human implications. Every year, restaurants worldwide generate millions of tons of food waste, contributing to ecRead more
Food waste is one of the most pressing challenges in the restaurant industry. It affects the business’ profitability and sustainability. It also has significant ecological, planetary and human implications. Every year, restaurants worldwide generate millions of tons of food waste, contributing to economic losses and environmental harm. At the same time, the demand for food grows and 1 in 11 people on Earth are going hungry.
1. Track and Monitor Waste Daily
2. Store Food Properly
3.Plan a Smart Menu
This is a very real problem, and in my experience, poor cash-flow management kills more Nigerian small businesses than lack of sales. A business can be making sales every day and still collapse because the owner mistakes revenue for profit. A few common reasons: 1. The Business Account Becomes a PerRead more
This is a very real problem, and in my experience, poor cash-flow management kills more Nigerian small businesses than lack of sales.
A business can be making sales every day and still collapse because the owner mistakes revenue for profit.
A few common reasons:
1. The Business Account Becomes a Personal Wallet
This is the “Vibe Spending” problem.
A customer pays ₦100,000. The owner sees ₦100,000 in the account and feels richer by ₦100,000. In reality:
₦60,000 may belong to suppliers
₦10,000 may cover transport and operating costs
₦5,000 may be taxes or charges
Only ₦25,000 may be actual gross profit
When personal expenses start coming out of that ₦100,000, the business is already being starved.
2. Owners Don’t Pay Themselves a Salary
Many small business owners treat the business as an extension of themselves.
A better approach is:
Decide on a monthly owner’s salary.
Transfer that amount to your personal account.
Leave the rest in the business.
That way, whenever you want to buy suya, fuel your car, or send money to family, it comes from your salary—not from inventory money.
3. Lack of Separation Between Accounts
One practical habit is to maintain:
Personal account
Business account
Many entrepreneurs use dedicated business accounts from banks or fintechs such as for business transactions and keep personal spending elsewhere.
opayweb.com
moniepoint.com
kuda.com
The psychological difference is powerful. Once money enters the business account, it is treated as business money until formally withdrawn.
4. Vibe Dashing
This is especially common in Nigeria because of strong family and social obligations.
The problem is not helping people. The problem is helping people with business capital.
Many business owners have unknowingly turned inventory money into family support money. Both are important, but they should come from different budgets.
5. No Record Keeping
Ask many struggling businesses:
How much did you sell last month?
How much was profit?
What is your current stock value?
Many cannot answer accurately.
Even a simple notebook or spreadsheet tracking:
Sales
Expenses
Stock purchases
Owner withdrawals
can reveal where the leakage is happening.
6. Growth Creates Bigger Problems
Ironically, increasing sales can make things worse.
As sales grow:
More stock is needed.
More working capital is needed.
More operational costs arise.
If profits are constantly withdrawn, the business cannot finance its own growth.
A Simple Rule
Many successful small business owners follow a version of this:
For every inflow:
Reserve money for restocking first.
Reserve money for operating expenses.
Reserve money for savings/emergencies.
Pay yourself.
Spend what’s left personally.
Not the other way around.
The uncomfortable truth is that many businesses do not fail because they are unprofitable. They fail because the owner and the business are sharing one pocket. Once capital starts funding lifestyle, family obligations, and impulse spending, growth becomes almost impossible regardless of how many sales are coming in.
The businesses that survive long enough to scale are usually the ones where the owner learns to think like an employee of the business first and an owner second. The owner gets paid; the business keeps its capital. That discipline is often what separates a thriving enterprise from one that is always “selling well” but never seems to have money.
What Does a Letter of Commencement of Business Mean for a Registered Business Name in Nigeria?
How to Activate Business Activities After Registering a Business Name and Obtaining TIN from NIGERIA INTERNAL REVENUEOh, my dear, let's talk about activating your business activities after registering your business name and getting your Tax Identification Number (TIN) from the NIGERIA INTERNAL REVENRead more
How to Activate Business Activities After Registering a Business Name and Obtaining TIN from NIGERIA INTERNAL REVENUE
Oh, my dear, let’s talk about activating your business activities after registering your business name and getting your Tax Identification Number (TIN) from the NIGERIA INTERNAL REVENUE office.
Imagine you have a beautiful farm, waiting for the rainy season to start planting those succulent tomatoes that Mama Ngozi will sell in her stall. Just like waiting for that rain, your business is waiting to start its activities officially.
After registering your business, it’s like preparing the land, but you need that rain (or more fittingly in this case – your commencement letter) to kickstart things officially.
When the tax office mentioned writing a letter of commencement, they meant you should formally inform them that your business is ready to roll! It’s like sending a special invitation to the rain to start pouring on your farm. In the business world, this letter signals to the authorities that you are ready to start your operations.
So, what should you do now? Well, it’s simple. You just need to write a brief letter to the tax office stating that your business is ready to commence operations. It’s like saying, “Hey there, we’re open for business!”
Once you’ve written and submitted this letter, the tax office will see that you’re all set to start making those amazing products (or selling services) and contributing your quota to the economy.
And just like that, with your commencement letter, your business will be active, and you can start operating officially. It’s like the rain finally coming, and your tomatoes can now grow and thrive in Mama Ngozi’s stall.
So, dear entrepreneur, put pen to paper, draft that letter of commencement, and get ready to bring your business to life officially. Now you’re on your way to making those great strides in the business world, just like Mama Ngozi in her thriving tomato business.
See lessHow Can I Reduce Losses and Food Wastage in a Foodstuff Business?
Food waste is one of the most pressing challenges in the restaurant industry. It affects the business’ profitability and sustainability. It also has significant ecological, planetary and human implications. Every year, restaurants worldwide generate millions of tons of food waste, contributing to ecRead more
Food waste is one of the most pressing challenges in the restaurant industry. It affects the business’ profitability and sustainability. It also has significant ecological, planetary and human implications. Every year, restaurants worldwide generate millions of tons of food waste, contributing to economic losses and environmental harm. At the same time, the demand for food grows and 1 in 11 people on Earth are going hungry.
1. Track and Monitor Waste Daily
See less2. Store Food Properly
3.Plan a Smart Menu
Why do so many promising small businesses in Nigeria fail despite making consistent sales?
This is a very real problem, and in my experience, poor cash-flow management kills more Nigerian small businesses than lack of sales. A business can be making sales every day and still collapse because the owner mistakes revenue for profit. A few common reasons: 1. The Business Account Becomes a PerRead more
This is a very real problem, and in my experience, poor cash-flow management kills more Nigerian small businesses than lack of sales.
See lessA business can be making sales every day and still collapse because the owner mistakes revenue for profit.
A few common reasons:
1. The Business Account Becomes a Personal Wallet
This is the “Vibe Spending” problem.
A customer pays ₦100,000. The owner sees ₦100,000 in the account and feels richer by ₦100,000. In reality:
₦60,000 may belong to suppliers
₦10,000 may cover transport and operating costs
₦5,000 may be taxes or charges
Only ₦25,000 may be actual gross profit
When personal expenses start coming out of that ₦100,000, the business is already being starved.
2. Owners Don’t Pay Themselves a Salary
Many small business owners treat the business as an extension of themselves.
A better approach is:
Decide on a monthly owner’s salary.
Transfer that amount to your personal account.
Leave the rest in the business.
That way, whenever you want to buy suya, fuel your car, or send money to family, it comes from your salary—not from inventory money.
3. Lack of Separation Between Accounts
One practical habit is to maintain:
Personal account
Business account
Many entrepreneurs use dedicated business accounts from banks or fintechs such as for business transactions and keep personal spending elsewhere.
opayweb.com
moniepoint.com
kuda.com
The psychological difference is powerful. Once money enters the business account, it is treated as business money until formally withdrawn.
4. Vibe Dashing
This is especially common in Nigeria because of strong family and social obligations.
The problem is not helping people. The problem is helping people with business capital.
Many business owners have unknowingly turned inventory money into family support money. Both are important, but they should come from different budgets.
5. No Record Keeping
Ask many struggling businesses:
How much did you sell last month?
How much was profit?
What is your current stock value?
Many cannot answer accurately.
Even a simple notebook or spreadsheet tracking:
Sales
Expenses
Stock purchases
Owner withdrawals
can reveal where the leakage is happening.
6. Growth Creates Bigger Problems
Ironically, increasing sales can make things worse.
As sales grow:
More stock is needed.
More working capital is needed.
More operational costs arise.
If profits are constantly withdrawn, the business cannot finance its own growth.
A Simple Rule
Many successful small business owners follow a version of this:
For every inflow:
Reserve money for restocking first.
Reserve money for operating expenses.
Reserve money for savings/emergencies.
Pay yourself.
Spend what’s left personally.
Not the other way around.
The uncomfortable truth is that many businesses do not fail because they are unprofitable. They fail because the owner and the business are sharing one pocket. Once capital starts funding lifestyle, family obligations, and impulse spending, growth becomes almost impossible regardless of how many sales are coming in.
The businesses that survive long enough to scale are usually the ones where the owner learns to think like an employee of the business first and an owner second. The owner gets paid; the business keeps its capital. That discipline is often what separates a thriving enterprise from one that is always “selling well” but never seems to have money.