Establishing a
business can be a daunting task, but experts say it can be achieved with
careful planning:
The thought of
owning a business is amusing to many people. However, as much as people will
‘love’ to own their own businesses, many admit that they have little or no idea
about what it takes to establish them; they don’t know where to start from.
But because the
thought of starting out on their own has been so hard to ignore, many people
braved the odds and set up businesses only for them to collapse because they
failed to consider many vital aspects.
ARE YOU QUALIFIED?
As appealing as
the idea of being your own boss is, experts are of the view that many people
are incapable of running a business or becoming successful entrepreneurs.
Unlike paid employment, which may only require expertise in an area and a few
traits such as discipline and hard work, being entrepreneur requires much more.
In addition to discipline, such qualities as self-confidence and credibility
are important. You have to also have excellent communications and human and
time management skills, among others. Of course, some of the skills required to
run a business can be improved along the way, but experts warn that starting
without the requisite skills would be a costly mistake. So, be sure you are
qualified.
BE SURE ABOUT WHAT
YOU WANT TO DO
Though experts
admit that starting a business can be a very challenging thing for people,
especially those who have been in paid employment for a long time, they say
remaining in paid employment because of this fear can lead to regret later, if
things don’t work out. This is why experts advise people against starting a
business because that is the only option open to them. They say once you are
sure about why you want to start your business, you will be able to approach it
with a great attitude and find it easier to handle challenges and go through
the process without relenting.
COME UP WITH A
GREAT CONCEPT
Before you quit
your job to become an entrepreneur, you must first think of a concept, product
or service that will generate a steady stream of income. This may sound easy,
but for most people, this is actually the hardest part. You should conceive a
plan that puts your knowledge, experience and expertise to use in the most
profitable way possible. Once you settle on an idea, research the marketplace
to see how similar businesses have fared.It is recommended that you start out with a business that you are passionate and knowledgeable about.
CREATE A BUSINESS
PLAN
No matter the
amount of support, expertise and funds at your disposal, experts warn that
without a great business plan, you are unlikely to succeed in setting up a good
business.Your business plan is supposed to be the blueprint or guide to everything you do regarding the business. It contains everything from your goal (mission/vision) to the nature of product or service you want to provide, among other things.
SORT OUT YOUR
CAPITAL
According to
experts, many entrepreneurs make the mistake of thinking that a successful
business is down to the amount of money available for the business. But
businesses floated with millions of naira have gone on to fail, while those
established with thousands of naira have grown to command billions of naira in
assets and profit. Nonetheless, you will require capital to start your
business; to produce your product and pay employees, etc.In sourcing the funds, it is important that you go to the right sources. Financial experts say small businesses and startups are better off depending on friends, and relatives as well as the entrepreneur’s savings for capital. But many people turn to the banks and borrow huge sums at high interest rates, hoping that they would break even in a short while and pay off the loans. But the reality is that because of the interest rates, they find themselves using all their profits to service the loans, with little left to grow the business.
DRAW UP A BUDGET
FOR THE BUSINESS
When it comes to
raising funds or spending money to keep a business running, many people rely on
assumptions. According to experts, for a business to utilize ‘scarce’ funds
effectively, they are better off operating based on a budget. As such, it is
important that you draw up budgets for your business. Do not become one of those
who say things like, “With N5m, I will be able to cover all expenses.” Experts
say you can come up with a proper budget for your business through research or
market surveys and the likes.
GET A STRATEGIC
OFFICE
The nature of the
business you want to do and the location of your targeted customer base are
some of the things you have to take into consideration in citing your office or
workspace. Many people just opt for the available space, but this may not be
good enough. Whether you are working from home or renting an office, be sure
that your workspace is designed to enable you work efficiently. If you are
running an ecommerce business, then you must ensure that your website is
designed properly or professionally.
GET AS MUCH HELP
AS POSSIBLE
Do not try to do
it all by yourself. There are many professionals out there and also resources
on the internet that can help you handle the technical aspects of establishing
a business. Such things as getting your business incorporated and drawing up
legal (proper) employment letters and terms for your workers are very
important. So also is paying your tax and operating in line with the best
practice in the industry you are setting up a business in. These are some of
the areas where you need help.
BE CREATIVE, PLAN
FOR THE FUTURE
It is important
that your business is ahead of the competition and the times. To achieve this,
it is important that you predict and react to possible trends in the future.
You have to reinvent your business constantly. You have to plan for the growth
of the business and the challenges that come with it. Also, you have to ensure
that your business can adapt to changing times and economic challenges.
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