Things to Consider When Starting Up a New Business
Things to consider when starting up a new business right from scratch, it is usually an uncharted territory for most inspiring entrepreneurs.
However, owing a business or perhaps becoming your own boss offers great rewards; and yet equally high risks.
Research shows that about 80% of small business falls within the first five years.
And with this in mind, it is important for one to evaluate the reasons and requirements as an individual who wants to start up a business.
There are many reasons why people enter into business.
That, not withstanding your jurisdiction or location where you live, below are a list of some factors you may want to consider before deciding to start your own business.
7 Things to Consider When Starting Up a New Business
#1. Analyze your business idea.
If you are just starting a business, it may be of interest to first analyze your business idea by doing a SWOT analysis.
The SWOT Analysis is a strategic management tool that provides the important evaluation techniques to help you decide on a specific business you have in mind.
As an entrepreneur, this will help you assess your business strengths and weaknesses, identify the financial risks, and establish your personal activity goals and the business profitability opportunities and possible threats.
Having your business at the right place, with the right clients, at the right time and with the right price could be a reason for the survival of a startup.
Your unique selling proposition (USP) can be easily defined as what a business has that her competitors don’t.
#2. Identify The Product Or Service To Offer.
All business exists because they offer products and /or service. So, it is import to know what you will be offering your waiting customers.
Sales are what drive a business, and your products and services are going to be the major components of sales.
Identifying the right products/service which your customers are willing and ready to buy is going to be very important to your business development process.
Choose a product or service that you are good at delivering; and you are sure you have the resources and capacity to do so.
#3. Define Your Target Market
Whilst products and services are major components of sales, you also need customers who are willing to pay in exchange for the product or service.
The more paying customers you have, the larger the chances of your business to succeed.
You need to identify the specific group of people that will benefit from your product and/or service (or simply identifying your potential target market).
Knowing your target market means you can specifically tailor your product to meet people’s needs with your product or service.
So for your new business, if you can’t think of anyone as your potential customer, then better try to offer a different product instead.
Failure to connect with the target audience, market invincibility and lack of strategies amongst other factors can lead to a business discontinuity.
#4. Determine the Necessary Skills Needed
Different skills are needed to manage a business and most enterprises may require specific skill sets.
This can include the skills to produce or develop your product, the skills to negotiate for raw materials, skills to manage your business; and the skills to sell your product.
Before you start, do you have what it takes to get your business up and running?
Think of the experience and other skills that you will need to ensure the business runs smoothly.
Things to Consider When Starting Up a New Business
#5. Identify Your Sources of Capital
Capital is an important factor for every business. Capital varies depending on the type of business that you are planning to start.
This may be in the form of funds, or property (such a place for your business; initial equipment to run your business; and manpower).
There are many financial institutions such as banks, cooperatives, and credit unions that can provide funds to small businesses through business loans.
You may decide to visit some of these lending houses near you and find out how they could help.
However, we do not encourage you to borrow money from the bank while starting up your own business; we advice that you start saving up some money when thinking of starting up a business in the near future.
#6. Choose the Right Name for your Business
Giving the right name to your business is one of the most important decisions you will make during your small business development stage.
When choosing a name, it is critical to choose one that lets the consumer or customers know what you are all about.
Your company name should be easy for customers to remember.
It is also important to do a company y search on your selected name to see if the name already exist or is copyrighted.
You can do this online or visit the office of the Department of Corporation nearest your state of residence and request for name reservation or name availability check.
Company Formation 101: Learn how to choose the best name for a business here.
If you are in Nigeria, you need to understand that the requirements to register a Company in Nigeria will depend on the business type.
#7. Think About the Future
It’s easy to become overwhelmed in the early stages of launching a company and or starting a business.
Where will your business be 5 years from now?
How about in ten years time?
Thinking about the future of your business is very import because you are creating a vision of what you want your business to be in the future.
So you need to generate a business plan for the business.
A business plan simply defines how a company will generate its revenues and make profits and doing this wrongly means having no focus for the business.
This helps you to plan ahead or decide if the business you are planning to start up can be more of a detriment rather than an advantage.
A well design business plan will help you decide more on what you want to offer and envisage the possible things which could go wrong.
Let’s talk business! And things to consider when starting up a new business
Contact Abbakin today for everything you need to know about how to start a business.
We are a team of business development managers who are willing to attend to your needs, and provide the correct solutions to help you achieve your business goals.
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