The idea of owning a business is very exciting. You get to make as much money as you are able to and also have a lot of time to yourself. The advantages of having your own business are numerous and now that you intend to own one, let see the things you need to consider.
Before we proceed, you would have to do away with the thoughts that owning a business is a plaything where your business area is your playing ground. Starting a business isn't entirely complex or hard, but you need much dedication and hard work on your part to make the business profitable on the long run.
Starting a business involves many things but with this article, you can take it a step at a time and see yourself build a business that would not just be profitable but also future proof.
Reason Why You Want To Start A Business
Naturally, the first answer that comes to mind is 'to earn more money'. And that would be the same for almost everyone but try to think differently. Truly, a profitable business is the dream of every entrepreneur, but do you want to solve the problems of those around you or you are starting a business to have more time for yourself. Maybe, you feel you can do more better than those already doing business in an industry.
Try to find a genuine motive behind your wanting to own a business. This would enable you to have a reason to continue with your business if things get rough.
Develop An Idea
There are already a lot of business ventures in Nigeria, so you need to have a distinct business idea to stand out. Copying other people business or business pattern won't give you the desired results.
If starting a cyber café looks profitable to you, remember that there are thousands of cyber café around, so what would you do differently.
Also, your business idea need to excite you because you would need the enthusiasm to convince clients and customers to try what you offer.
To cap it all, get and idea that is distinct and also excites you.
Make A Market Research
Conduct a market research on your target customers. Having a vast understanding on the business you wish to start can't be over-emphasized.
Know your customers and your competitors. For example, if you want to start a diaper retail store, your target customers should be nursing mothers and pregnant women.
Then you should have a plan on what you can do better than those in the same business niche as you.
Build A Business Plan
This should be the blueprint of your business. A good business plan should include goals, why they are beneficial to the business and how to reach them.
Your business plan should contain everything, organizational aspect and operational plan, because it helps you stay on track at the start and keeps you organized as you go.
Make An Assessment On Yourself
Now that you have your reason for starting a business, the ideas have also been formed and your business plan already in place, do you have the time to start a business now?
As stated earlier, starting and running a business isn't a plaything. So, ask your self, looking at your business idea, plan and setup, do you have the time, energy and dedication to float a business and keep it standing? A business of your own could be rewarding, but can you really put in the things that could make it so?
After your assessment, if you don't scale through, you can make some changes in your plan to suit your schedule but it is more advisable to see if you can change your schedule to suit your business plan.
After your personal assessment, you need a financial assessment. The business plan you wrote, how much is needed to cover the costs.
Below are the things to calculate when making an estimate for capital.
- Cost of renting/buying a space in the location you intend to open your business.
- Cost of furnishing: chairs, tables, stationeries (if needed), desktops etc. Maybe you might want to repaint the walls, you can also add the cost too.
- Cost of employing people. You might need extra hands, the salaries you would pay should also be included.
- Day-to-day running cost. Electricity bills and the likes goes here.
Note: The cost of running a business is not limited to the points listed above.
Source Of Funds
Every business owners start their business with money. You might have since been saving up for the business capital. But if you don't have money to start, you can get your capital through other means.
There are commercial banks across the country willing to give business loans to individuals. You can also seek business grants.
Many business have failed almost as they started majorly because of inadequate capital. Make sure your funds are enough for the business you have in mind so you don't stop half way regretting why you started.
Register Your Business
Without registering your business with the required authorities, your business remains illegitimate and invalid.
In Nigeria, the official national body for business registration is Cooperate Affairs Commission. You can also register your business with the Chamber Of Commerce which sees to business registration for states in Nigeria.
Create A Business Bank Account
A business bank account is essential to keep track of your company funds and to prevent mixture of business and personal funds.
Every commercial bank offers business account creation, so you wouldn't have a hard time creating one for your business.
A business savings account is also a good thing. You can create both a normal account and a savings account for your business, to keep track of your funds and profits.
Create An Online Presence
According to a research by oberlo, a lot of customers take brand's website seriously and believe in the reviews they read online about a product or service.
An online presence for your business is essential to bring more customers and help them make decisions.
Here is a quick rundown on having a solid business online presence.
- A business website: A website isn't entirely hard or costly to create and manage. You can easily set a website up using WordPress. And you a can also hire the service of a web designer on fiverr or upwork. There is no need for something complex. A simple, functional website with clean design is enough.
- Create social media accounts: This is also very vital in a business. With social media accounts, you can target more customers and it makes them trust you more.
Build A Solid Team
Having a team is not necessary if you plan to be the only one running your business. If that won't be the case, you need a team that you can rely on to actualize your business goals.
How to get a team for your business? You employ the right people to work in your business, individuals who would give what is takes to see the business grow.
Get A Business Insurance
This is the part where a lot of business fail in Nigeria. Most business owners fail to take an insurance to cover their business and this leaves them with nothing in the event of hazard.
What would you do if your business building caught fire? You would either quit and go home with nothing or you would go home with nothing and rally round for funds to start your business again. But an insurance can take care of that for you.
Though, taking an insurance solely depends on the type of business you do. Research to know what insurance your competitors use and know the type of insurance that suits your business.
Now that you know what it takes to start a business in Nigeria.
You must now realize that starting a business isn't all that easy, you need a lot of dedication, hard work, and commitment. But if you can put all that in, starting a business could be the best thing to happen to you.