HOW CAN I START A NEW BUSINESS?
This question is widely asked by most intended entrepreneurs and it keeps coming out on a daily basis. Many have the intention of going into a business but lack the basic knowledge of how to go about it.
Business is a beautiful thing when you know the right way to go about it. It is a known fact that the initiative is the most critical stage of every business. When you are able to conquer the first stage, you have done the most difficult thing in business.
In this article, I am going to highlight 10 basic steps of starting a business wish that will guide you in your own business.
Study it carefully and apply it diligently.
- DEFINE A PROBLEM
Every business tends to solve a certain problem, therefore, money shouldn’t be the aim of venturing into a business. This should be the very first stage of every business because the business you want to start depending on the problem you intend to solve. For instance, the person selling car spare parts sees the need of bringing it closer to the people around him which will avoid them going too far to access. I have seen circumstances where people abandoned a guitar because there is no nearby shop that sells a guitar string. To start a business, be able to identify a problem in the environment, then work towards solving it.
2. WRITE A BUSINESS PLAN.
A business plan is a set of intended actions through which one expects to achieve a business goal.
A popular adage says, “If you fail to plan, then you are planning to fail”. In business, planning is very essential because it is the stage to decide how you want your business to be.
Though the business is prone to growth a good business plan guides you through each stage of starting and managing your business. You’ll use your business plan as a roadmap for how to structure, run, and grow your new business. It’s a way to think through the key elements of your business.
EXAMPLE OF A GOOD BUSINESS PLAN
- Define your vision. How do you want your business to be in the nearest future?
- Define your mission. Unlike that of vision, your mission should explain the reason your business exists.
- Define your objectives. Your objectives should be able to point out what are you going to do (i.e your goal) that will lead to the accomplishment of your mission and your vision?
- Outline your basic strategies. What strategies do you intend to use in achieving the objectives?
- Write a simple action plan. Bullet out the smaller task-oriented actions
- Required to achieve the stated objectives.
3. CHOOSE A LOCATION FOR YOUR BUSINESS
After drawing a business plan, you should be able to choose a location best for your business. In choosing a business location, you should consider the needs of the potential location and how the business can address the problem there. Besides their needs, you should also consider their culture as well. Culture is the total way of the life of the people in a particular area, therefore your business will suffer growth if your goods or services are against the people’s culture. What is the future of a brewery in Mecca?.
4. HAVE POTENTIAL CUSTOMERS
Potential customers are the ones who may be in need of your goods or services. Such people need to be considered first before starting a business for the aim of every business is to serve the needs of some certain individuals. At this stage, you should be able to carry out research of those in need of your service or goods, where are they? How can I reach them?.
5. HAVE A BUSINESS NAME
The business name is very vital in every business for such will serve as the number one business identity. Even the CEO should see the business as a living organism and give it a name for it will be required in your proposal, ordering, application, advertisement, etc. the name should be a catchy one for easy pronunciation.
6. MAKE A BUDGET
You should be able to itemize the summary of your intended expenditure.
The amount of money needed for your intended business will be captured in your budget, besides, budgeting will guide you in your spending, especially at the building stage of the business. The aim of every business is growing, but in case the yield didn’t come as expected, the budget reserve should be able to keep.
7. FUND YOUR BUSSINESS
This is an unavoidable stage of every business irrespective of the source of funds. There are many ways to fund a business, it can either come from your personal savings, contributions from a group you belong to, a loan from friends, lending institutions, banks, etc. all these are ways you can generate your fund for your business. The size of your business at the point of starting depends on the available fund (capital).
8. REGISTER YOUR BUSINESS
It is important you register your business with the business union, agencies, government (federal, state, or local), etc.
Without registration, you may miss out on the legal, security, tax, and financial benefits that may attach. Besides, registration is another form of insurance.
9. START THE BUSINESS
Start the business with total commitment and diligence. In as much as you are expecting growth, bear it in mind that most businesses hardly yield a reasonable profit at the initial stage, therefore patience is very vital.
10.BE FINANCIALLY DISCIPLINED
Always separate your business money from your personal account. Many are found in the act of combining their business money with the income they earn from other sources. Such an act with aid growth in business, it is either you depreciate or remain static. Besides, it brings about confusion in the area of accountability. Let there be a separate account for the business and no good reason should make you spend the money outside the business for it is like a crop planted that shouldn’t be harvested till it is fully mature.