Many Nigerian entrepreneurs work hard to build successful businesses, but they often forget to plan for the future. When the founder dies, the business often dies with them. This happens across different tribes and industries in Nigeria.

Most African entrepreneurs build their businesses without a clear plan or structure. They handle everything themselves, from finance to human resources. This means that if the founder dies, the business collapses. You will see a motor spare part business or grain seller, computer accessories or hotels or schools collapse shortly after the dead of the founder. These were businesses making hundreds of millions annually in turn over or even billions.

Banks are cautious when lending to businesses that are not properly structured. If the business owner dies, it’s hard for the bank to recover the loan. This is why banks prefer to lend to businesses that are registered as separate legal entities.

The rich don’t just work hard; they also structure their businesses properly. They document everything, plan for succession, and diversify their investments. This helps their businesses to continue even after they’re gone. You can imagine a popular realtor that secured billions of Naira contract with a statement government now battling EFCC alone because he didn’t have a board, it’s more or less a one man business even though registered as a company.

To build a business that outlives you and separate your liability from the liability of the business, consider the following steps:

1. Register your business properly as a Limited Liability Company. A lawyers advise is needed on the kind of LTD to register. Don’t just say get me an LTD.

2. Build a board of trusted advisors to help with decision-making. Have professionals in your board like Accountants, lawyers etc. You will appreciate this, the day EFCC beams light on your company.

3. Document everything, including financial records and legal compliances.

4. Plan for succession by involving your children or trusted partners.

5. Diversify your investments to reduce risk.

6. Think long-term and prioritize sustainability over short-term gains.

7. Invest in financial education and business structuring.

By following these steps, you can build a business that will continue to thrive even after you’re gone. Remember, hard work can make you rich, but structure and planning can make you wealthy and leave a lasting legacy.

P. D. Pius Esq.

Abuja, Nigeria