How to Run Your Business Better and Make More Profit

Running a business better isn’t about working harder or posting more on social media. It’s about building a system that makes money consistently: you know your numbers, you control costs, you sell what people actually want, and you deliver it efficiently. 

If you want more profit, focus on three levers only,raise your margins, increase how often customers buy, and cut waste that doesn’t improve sales or customer experience. Everything else is noise.

WHY PROFIT IS HARDER IN NIGERIA AND WHY STRUCTURE WINS

Costs can rise quickly in Nigeria. Transport can change overnight. Power supply costs can increase. Supply chains can delay delivery. Customers can bargain hard and still delay payment.

Inflation also affects both your expenses and your customers’ spending power. For context, the Central Bank of Nigeria publishes inflation figures that show how prices are moving, and that matters because your input costs usually follow the same direction.

Even with the pressure, small businesses remain central to jobs and the economy. Surveys and reports that draw on official sources repeatedly show that micro, small and medium enterprises account for most businesses and most employment in Nigeria. 

That means you are not alone, and it also means the businesses that survive usually do one thing well. They run with structure.

STEP ONE: KNOW YOUR REAL COSTS BEFORE YOU CHASE MORE SALES

Many business owners only count obvious costs like raw materials, stock purchase, rent, and transport. They forget the silent costs that quietly eat profit. Think of data, POS charges, packaging, fuel, generator repairs, small refunds, replacement of damaged items, delivery mistakes, discounts given to settle complaints, and time wasted on endless customer chats.

A simple way to fix this is to do a one-month cost capture. For the next thirty days, write down every expense that touches the business, no matter how small. At the end of the month, group them into two parts. The first part is the cost of delivering your product or service. The second part is the cost of running the business. When you see your real cost, you stop guessing. Profit becomes something you can plan for.

STEP TWO: PRICE FOR PROFIT, NOT FOR APPROVAL

Underpricing is one of the fastest ways to remain stuck. When your price is too low, you attract customers who bargain more, delay payment more, and demand extra work beyond what you agreed. You also lose the ability to reinvest into stock, tools, staff, and marketing.

A healthy pricing method is simple. Calculate the direct cost. Add a share of your running costs. Add your profit margin. Then add a small buffer if your inputs are volatile, especially if you buy items affected by foreign exchange or seasonal scarcity.

Another important move is packaging. Nigerians love clarity. Instead of selling everything as separate small items, bundle your offer into a complete package that solves a clear problem. Packaging helps you increase what each customer spends and reduces negotiation because the offer is clear.

STEP THREE: FIX CASH FLOW BECAUSE PROFIT WITHOUT CASH IS STILL RISK

Cash flow is the oxygen of a Nigerian business. You can be profitable on paper and still collapse if customers delay payment or if you fund everything upfront.

If you offer services, collect a deposit before you start. If you sell goods, reduce long credit unless the customer has a proven history of paying on time. If you must offer credit to keep an important customer, set clear payment dates and enforce them. Late payment should not be normal in your business.

Also separate business money from personal spending. Many SMEs struggle because the owner spends working capital on personal needs and later restocks with pressure. That cycle reduces profit because it forces emergency buying, borrowing, and rushed decisions.

STEP FOUR: BUILD SIMPLE SYSTEMS SO YOUR BUSINESS IS CONSISTENT

If your business depends on your memory, things fall apart when you are tired or busy. Systems keep quality consistent and reduce avoidable mistakes.

Start with your four core systems. How you receive orders. How you confirm payment. How you deliver. How you handle complaints. Write your process in simple steps. Create standard messages for pricing, payment instruction, delivery timelines, and customer follow up. When your process is clear, your business looks more professional and customers trust you more.

In Nigeria, professionalism is a competitive advantage. Many customers will choose the seller who communicates clearly, delivers as promised, and handles issues calmly.

STEP FIVE: TRACK TIME BECAUSE TIME WASTE IS PROFIT WASTE

Many business owners track money but never track time. Yet time is where profit leaks the most, especially for services.

For one week, track how long you spend on customer chats, production, delivery coordination, follow-ups, and complaint resolution. You will usually discover that a small part of your work produces most of your income, while a large part produces stress. Once you know where time goes, you can reduce back and forth, batch similar tasks, use templates, and set boundaries.

Tracking time also improves pricing. When you know a job truly takes several hours, you stop pricing it like it takes one hour.

STEP SIX: INCREASE CUSTOMER RETENTION BECAUSE REPEAT SALES ARE CHEAPER

New customers are good, but repeat customers are cheaper. With repeat customers, you spend less time explaining, less time convincing, and less money marketing. Profit rises because your cost per sale drops.

Retention is built through small habits. Deliver on time. Communicate clearly. Do not overpromise. Fix mistakes quickly when they happen. Follow up after delivery to ensure the customer is satisfied. For consumables, send a reorder reminder. For services, offer monthly maintenance or periodic check-ins. These small moves build trust and keep customers coming back.

STEP SEVEN: MARKET WITH CLARITY, NOT NOISE

Marketing is not just posting often. Marketing is making it easy for the right customers to understand what you sell and how to buy.

Most Nigerian buyers want three things. Proof that you can deliver. Clarity on what they are getting. A simple way to buy. Proof can be customer feedback, process videos, behind the scenes work, and clear pictures of finished jobs. 

Clarity means your offer is easy to understand, your timeline is clear, and your terms are clear. Ease means customers can place an order without confusion, using a clear WhatsApp contact, a short order form, or a simple message format.

A useful discipline is to promote one main offer at a time. When you market everything at once, customers get confused. When you market one hero offer for a week or two, the message becomes stronger and sales become easier.