In any society, needs are inevitable, humans are either in need of products or services. Business is primarily about providing some sort of services or products in exchange for monetary gains.
The major reason why people go into business is to make profit, aside this, every other reason is secondary. Regardless of the fact that business brings profit, it can also bring unprecedented failure if not carefully planned and managed.
This brings us to the main aim of this post. In this post, I will try as much as possible to enlighten us on the 10 most important things to consider before starting any business.
Your knowledge of this vital factors will determine your success in any business endeavor you have decided to embark upon.
1. A Good Business Idea
It is very important to be armed with every necessary knowledge concerning the proposed business. This is always the first step in establishing any business and this is pertinent to the success of the business.
You need to have an extensive knowledge of what you are putting your money into. It is also important to possess the required skills necessary for the success of the business, skilled hands can also be employed.
The major points to consider while choosing a business idea is the ability of your product or services to solve major problems or serve major needs.
If your business meets this simple but tricky requirement, then I can state that you are on course to becoming a successful entrepreneur.
2. Map Out a Good Business Plan
A business plan is very essential as it lays down significant areas of the business in simple terms, with the intent of making clear your chances of success in the proposed business.
An ideal business plan takes into cognizance the overall business description, the market demand, competitive analysis, the business design, management and financial forecast. This is also very important for a new business as the importance of having an idea of what to expect is unquantifiable.
3. Study Your Competition
This is already included in the business plan, but it is important that extensive research is done to identify the services already rendered by your major competitors as well as their prices.
Try to observe what works for them and their challenges, that way you are already placed in a better position to overcome those challenges when you finally decide to start your business.
4. Unique packaging and service delivery
As an entrepreneur or business owner, you are expected to be constantly brainstorming, looking for innovative ways to package or deliver your products or services.
This is very synonymous to increased patronage as majority of customers are always thrilled by a satisfying service delivery. A customer will always be happy to pay for a product or service delivered perfectly to satisfy his or her needs.
5. Study Your Target Market
This is also very important for any business as an accurate or near accurate evaluation of prospective customer base is important in other to enable you decide if the risk is worth taking.
It is also necessary as it helps business owners compare the rate of expected patronage to the amount invested. Therefore it is important to consider your target market before starting any business as this is also very paramount to your success or failure.
6. Consider the Taxation Policy, Registration and Licensing Requirements
Some business here in Nigeria requires a permit or a licence from the government that signifies approval before it can be established while some others requires you to join an association which has its own rules and regulations.
It is important to know these rules and regulations so as to determine if it will affect your success or not. It is also important to know the process and procedures involved in the registration process of the business you have chosen.
Although Nigeria is a country with a very considerate taxation policy, it is very important to study the taxation policy for the kind of business you want to embark upon so as to avoid regrets.
7. Sufficient Capital
The major hurdle faced by most aspiring entrepreneurs is lack of capital. Therefore it is important to consider the amount of capital on ground before choosing a business, if you have chosen a business already, it is important to know the amount of money needed to start up.
In cases where the capital available is insufficient, it is best to have other safer ways of generating capital, as this is needed to successfully start and keep the business afloat.
Other ways of generating capital might be through soft loans, borrowing from friends and family or inviting investors.
But if you have to take a loan from the bank, it is necessary to understand the terms involved clearly, consider the interest rate in relation to your expected profit and the loan’s duration.
8. Secure a Strategic Location
The importance of establishing your business at the right place can not be over emphasized. In fact, it is one of the basic steps to effectively running a successful business.
A good location exposes your product and services to your prospective customers. It is necessary to secure a location that is easily accessible to your prospective customers, as some may likely patronize you due to your adverts.
The business must be situated at a place where you have carefully studied and concluded that your product or services will answer the needs of majority. In essence, your business should be located where your target customers are based.
When starting a new business, it is necessary to take your products or services to the prospective customers. This is necessary to boost patronage.
Advertising your business is as simple as getting a website or a social media page where you talk to your audience about the services or products your business provides in an enticing manner.
It can also be done through a whatsapp broadcast message, bulk SMS or through billboards, fliers and radio jingles.
9. Profit Management
The major aims of going into a business is to make profit, therefore serious effort must be put in place to maximize your profit while not degrading the quality of your products.
It is important to always keep records of your overhead costs and most importantly the cost of rendering a service or producing a product.
This helps to know if the business is making sufficient profits or loss. In business, whether new or old, adequate profit management skills is needed to keep the business running. A business that lacks this will always struggle to stay afloat.
In conclusion, the success or failure of a new business strongly depends on the factors listed above. When all these factors are taken into consideration, the time and resources invested in your business will definitely be worthwhile.
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