Lottery business is very popular in Nigeria with many popular lottery brands striving for customers.
As a beginner, the lottery business can be very challenging yet highly lucrative.
Lottery business is not a business to venture into ignorantly or else you will fail woefully.
Nonetheless, applying the right steps on how to start a lottery business in Nigeria can make you be very successful in your business.
If you are looking for how to start a lottery business in Nigeria, this guide will help.
Lottery Business In Nigeria
Lottery is a type of gambling in which winners are chosen by drawing lots from among those who have paid money to participate.
Gambling in Nigeria is divided into legal and illegal. Legal forms include prize lotteries, ground casinos, and betting. Illegal forms include Roulette, Five games, and Non-skilled card.
In Nigeria, lottery is accepted but highly monitored and regulated by the National Lottery Regulatory Commission.
Lottery is one of the most straightforward methods of making money and becoming rich very fast.
Most Nigerians are excited about playing lottery because it generates a huge sum of money.
Lottery business has evolved to embrace technological inventions, so you can create an online platform where people can stay at the comfort of their homes to play.
Lottery business in Nigeria has come to stay, and it is not going off the market anytime soon.
Lottery Brands In Nigeria
There are many types of lottery brands in Nigeria but not all are genuine. It is good to know the genuine lottery brands to learn from them. Some of the genuine lottery brands in Nigeria are:
- Lotto Nigeria
- Baba Ijebu
- Golden chance Lotto
- Western Lotto
- Wesco pools and lotto
- Betking Nigeria
- Winners golden bet
16 Steps To Start A Lottery Business In Nigeria
There are important steps you need to follow to start a lottery business in Nigeria. This article provides you with all the important steps you need to know.
1. Do Your Research
It is important to do your research before starting a lottery business in Nigeria. By doing your research, you will have the knowledge of what it takes to start up a lottery business.
You will know where and how to register, the common mistakes people make, and the rudiments of the business.
You can research different lottery brands, ask questions, read books on lottery or learn from YouTube. Doing your research will also help you know the type of lottery business to do.
Virtually, some of the niches in the lottery business industry are:
- Draw lotteries
- Scratch tickets
- Sport betting
2. Write A Business Plan
A good business plan must include the strategies you will use in managing your lottery business.
The strategies might include how to generate startup capital, how clients will be attracted to the business, and how the business will be managed.
- Other things to include in your lottery business plan are:
- What your lottery system is all about
- Your target market and the kind of services you intend to offer.
- Your ideal potential customers as well as the actual and potential size of your market.
- Your marketing strategy or marketing plan
- Your product description
- Your budget and a financial plan.
- How to achieve your desired business goals, etc.
3. Know the Possible Threats and Challenges You Will Face
Every business has it challenges, and the ability to properly manage and overcome these challenges will go a long way in growing your business.
The challenges a lottery business might face during the time of operation or when starting are the poor state of the economy, emerging new technologies, and the arrival of competition.
Threats and challenges are not new, you should expect them and then set up strategies to handle them.
4. Raise Enough Capital
Lottery business is capital intensive. Before starting a lottery business in Nigeria, you need to raise enough start-up capital.
The registration process is expensive and setting up the business requires a huge amount of money.
Many lottery businesses have shut down because of insufficient money to run them. Steps to raise money for your lottery business are:
- Apply for a loan
- Raise capital by asking friends and family
- Meet an investor for a loan
- Personal savings
- Approaching family members and friends for a soft loan
- Raising money from the sale of personal properties
- Raising money from business partners
5. Get A Business Name
To start your lottery business, you need to differentiate yourself from others by getting a business name.
A business name will make you look genuine and also entice customers. Get a business name that is short and catchy, one that can be easily remembered.
If you are confused or find it difficult to choose a business name, you can consult business experts or business planners to come up with an outstanding business name for you.
You can go on social media platforms like Facebook, Twitter, and Instagram and ask people to suggest a business name for you.
You can also request a suggestion of business name on Nairaland or use business name generators.
Things To Consider When Choosing Your Lottery Business Name
- Decide on what you want the name of your business to communicate.
- Make it short
- Make it easy to pronounce
- Make it creative
- Avoid odd spellings
- Be conscious of translations
- Make it easy for people to remember
- Be unique.
6. Register Your Business
There is no way you can run a lottery business In Nigeria without first registering the business with the appropriate authorities in Nigeria.
Registering a lottery business in Nigeria is stressful and it is advisable to get a lawyer to help you in the registration process. However, you can still go through the registration alone if you are capable.
First, you need to register your business name with CAC. Learn how to register your business name with CAC.
Then, you need to visit The National Lottery Regulatory Commission to know the registration process. You must apply for a license/permit from the commission.
There are three classes of licenses granted by the National Lottery Regulatory Commission(NLRC). The three classes of lottery licenses are:
- Lottery License
- Sports betting license
- Promotional license
The application fee for registering lottery license is N10,000 and the processing fee is N2,000,000 which is payable to the commission.
7. Get the Necessary Legal Documents You Need to Operate
It is necessary to get the legal documents you need to operate. The fundamental legal documents that you will need to successfully start and run your lottery business are:
- Certificate of Incorporation
- Business Plan
- Business License
- Non Disclosure Agreement for employees
- Operating Agreement
- Insurance Policies
- Employment Agreement
8. Choose The Most Suitable Legal Entity For Your Lottery Business
It is important to decide on a legal structure for your lottery business. It can make your run your business smoothly and also affect factors such as your liabilities, taxes as well as control over your lottery business.
There are four basic entities that an entrepreneur can choose from in Nigeria.
Each of these entities comes with its advantages and disadvantages, so it is necessary to carry out your research on the basic entities that are suitable for your lottery business.
The four basic entities that are available to you as a business owner are:
- Sole proprietorship
9. Have An Insurance Policies For Your Lottery Business
Having an insurance policy for your lottery business is very important, as insurance protects you from any harm that might occur when running your lottery business.
Ensure that you carry out careful research on which insurance policies are best for you.
If you are confused about some policies, you can meet a professional insurance agent or broker to advise you on the suitable insurance policies for your lottery business. Some of the basic insurance policies you will need for your lottery business are:
- Business Property Insurance
- General Liability Insurance
- Business Interruption Insurance
- Workers Compensation Insurance
- Employment Practices Liability
10. Get A Shop In A Good Location
A good location is necessary for your lottery business to boom. Your lottery business must be located in a busy and populated environment, an environment that is well known and accessible.
The environment must be occupied by males and females from age eighteen upward and those who are earning income.
Make sure your office is well equipped and attractive. If your office is not attractive, people will doubt if you will be able to pay them when they win. Some of the equipment that you need to fully start your lottery business are:
- Lottery Software
- Database software
11. Set Up Prices For Your Services And Products
Lottery businesses do not make their money from selling tickets at a particular price. Tickets are sold according to the odds a customer has picked for his game.
Moreover, ensuring that the odds are set right is the main thing for any lottery business.
Before setting odds for your game, endeavor to check what your competitors are doing. Moreover, whatever odds you fix should be fair but also profit you as well.
12. Create A Lottery Software
Unless you want to stick to the old way of picking numbers on the board, It is necessary to obtain software that will run the number draws.
Things have changed; nowadays people love comfort, so by creating a website that enables people to play from the comfort of their homes, you will have more customers and make more money.
Your website must be very secured, and easy to use on mobile phones because plenty of people use their mobile phones to play lottery.
Also, make it easy for the site to be translated into different languages. It is also necessary to choose a secured payment platform for your lottery business so that people can easily cash out when they win.
13. Advertise Your Business
It is necessary to advertise your lottery business to gain more customers.
You can make an advert on radio, television, and social media platform like Facebook, Instagram, Twitter, etc.
You can also give discounts to customers each time they refer a friend.
You can make winners of your lottery business become brand ambassadors of your company. This will make them more faithful to your company and also help in referring more customers to your lottery business.
Moreover, more customers bring in more money thereby making you wealthy.
You can also Use websites pop-ups to ensure that your business is visible to potential customers
Tell your loyal customers to help in referring your lottery business by offering them incentives, etc
14. Stay competitive
To stay in the lottery business for long, you need to do what your competitors are not doing. Stay competitive, ensure that you offer bonuses on certain games. Be creative in everything you do.
15. Have A Good Customer Service
Customers are the backbone of every business. The way you treat your customers will determine how long you will stay in your business.
In lottery business, you need to treat your customers right to retain them. Having loyal customers for your lottery business means that you will not struggle to generate money for your business.
One thing that will increase customer retention in your lottery business is providing excellent customer service for your clients. Customers love when their inquiries and complaints are quickly attended to.
16. Set Up Rules And Regulations
In lottery business, you need to have set rules everybody must follow. Not setting up rules will bring disorderliness to your lottery business and make you look unserious and fake.
Lottery business is a very lucrative business anybody can venture into. Although it is capital intensive, the money it will generate for you is worth the try.
That’s all on how to start a lottery business in Nigeria.
I hope this helps?