HOW TO START A BUSINESS IN NIGERIA
John is frustrated and thwarted, he has invested all of his savings into his so-called business but the business seem to be deteriorating everyday. He has resigned from his place of work where he is being paid well to start his own business, but, here is John, disappointed and frustrated. What could be the reason?
This topic is timely because there are a lot of failed businesses today. Research has shown that about only 40% of business startups succeed while the remaining 60% end up closing down. This is due to the fact that a lot of people just jump into business with first sitting down to think about the costs (not only monetary costs) and sacrifices they have to make as an entrepreneur.
Therefore this article explains the major thing to look out for when starting a business and the steps to start a successful business.
The Oxford Advanced English Dictionary defines business the act of providing goods and financial service involving financial, commercial and industrial aspects. But for a business to be successful, the good or service rendered must fulfill a need, solve a problem or satisfy a want.
A business is not something you start because you have a lot of money or because people are saying you should start one. Many even follow the bandwagon to start a business. The steps to start a successful business are listed below;
STEPS TO STARTING A BUSINESS
Below are the steps you need to take as an entrepreneur to start a successful business,
Even though many entrepreneur skip this step, I will say this is the very first step to take in starting a business ; evaluating yourself. Many go into business without asking themselves some questions. Before embarking on a business, you must ask yourself some questions like;
After answering the questions above, then you can be sure whether you want to start a business or not. The truth is that, not everybody can be entrepreneurs. So before you decide if you want to start a business or not, you have to discover yourself, where your strength lies, your weaknesses, skill sets e.t.c
To be an entrepreneur is a whole lot of responsibility, one has to sacrifice his/her time ,energy, resources e.t.c so one should be sure he can meet up with the sacrifice before starting a business because trust me, it will cost you a lot. Responsibility is the key word here. As an entrepreneur, you will be responsible for all the happenings in your business.
This is the first step in starting a business because many do not have the capability and ability to run a business on their own, many are also afraid of failing, so the first step is to answer the four questions listed above.
After successfully carrying out the survey of discovering yourself, the next step is to think of an idea. Some business ideas are good but are not feasible or realistic in this part of the world so one has to critically think of a good and feasible business idea. It might be an idea you have been thinking about for some time or it might be an idea that is already in existence, just make sure it is realistic. And if it is an idea that is not new, think on how you will make yours better and how you will have an upper hedge over your competitors.
Research is very key to starting a business, as it gives the researcher knowledge and insights about the type of business he or she wants to embark on. A start-up entrepreneur must make necessary research about the market, potential customers, ask questions and get feedback, seek advice from other entrepreneurs.
This stage is important so that another person will not steal your plan or idea, you have to make it legal. It is very advisable to hire a lawyer to assist you in this legal process . To make your business legal, you must do the following;
Many business start- ups omit this step, writing a business plan is very important as it keeps you going and focus. According to Wikipedia, a business plan is a formal written document that contains business goals, methods on how to attain the goals and the time frame in which the goal will be achieved.
In simple terms, a business plan summarize your business and its goals. A well written business plan also drive investors to invest in your business. A business plan should contain;
3.Products and Services : This section of your business plan contains or explains a clear description of your product or service, the cost, description of your suppliers.
Most entrepreneur think this is the first step to starting a business, but we see from this article that it is not the first. Before you invest or put all your money in a business, you should have successfully gone through the 5 steps listed above. Though financing is very important in business, yet it is not the first thing to make provision for. Finding financing can be challenging especially in this part of the world. Below are some of the ways you can finance your business;
After financing your business, you need to develop your product and service. There are different strategies to develop your product or service. Some of the steps to take to develop your product or service are listed below;
At this stage, you should decide the location of your business, whether it is a shop, building, an office or an apartment. In finding a location, some basic things need to be considered;
There is a need to build your team; those who will work with you. Even if it is your business, only you cannot run it, you need people. This is the stage where you choose the kind of people you want to work with you.
Most people just jump into this step without going through all other steps. After going through the stages above, you can now start selling your products or rendering your service, Since the major aim of any business is to make profit and without selling and earning revenue, one cannot make profit. Some of the strategies of selling your product or service are;
Though this is the last stage in starting your business, growth is important in a business. You must grow your business to keep it going. The two major step to growing your business is to improve your marketing skills to acquire new customers and retain old ones.
John is frustrated because he did not follow the steps listed above. To start, run and operate a successful business, the steps above should be taken into consideration.
NOTE: This article was first published http://www.bullscapitalltd.com
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ABOUT THE AUTHOR
Damilola Babatunde has a great passion for writing. She write articles on starting a business, how small business owners can grow their business e.t.c and many small business owners have really benefitted from her write ups.