Last Updated on 20/08/2018 by Ochoche David
Do you want to start a new business but don’t know how to set it up?, then i got you cover.
starting a new business is a great challenge to many people even tho they have all that’s require to start a business.
But they can’t start because they don’t have the right knowledge on how to setup a brand new business.
when an entrepreneurs skips any procedure involve in setting up a brand new business, it would affect the standard and the prospective of the business.
There are some steps an entrepreneurs should take one after the other when setting up his/her business. That is exactly what we are go to discuss in this post.
The steps are:
1. The business idea: The first to do is to generate the idea about the business you want and how you can implement it as well.
without business idea you can’t start a business unless you develop a concrete business idea.
There are so many types of business out there but you have to be capable enough to identify a specific one that you are interested of.
Develop your own business idea, think critically and build up a huge knowledge on the business you identify, is very important as you have the idea now,
the next thing to do is plan how to actualise the idea which lead us to another step
2. The business plan: As far as you have the idea now you really have to plan a drastically business maps, the objectivity, how to manage, to control and keep the business flowing effective.
Even scripture support plan and jesus himself gave an instance to the people that want to build a mansion without planning the cost of the building.
He insist that we must plan in everything we do.no business can succeed without effective planning. how worthy your plan is, is how your business will look like
3. The business name: This is very very essential because your business must need to have a genuine name that march with the functionality of your business.
you must decide and give your business the right name that suit it, describe your activities and easy to be be remember by your audience,
for instance when you operate retails business, the name should be reflect to your target audience that you are operating retails business.
Retail business should not be called academy and school cannot be call store.
4. The business location: This step is a very critical step to deal with it sensitively. An effective location is very necessary because it would determine the prosperity of your business.
Choose a very good business location is very important.
There are some setting you need to consider critically in choosing a business location. They are:
- The nature of the market for your business
- what is the most things in demand in that location. In other word it simply means what people want.
- social amenities (Road, power, etc)
- competitors (consider their strength and weakness)
- the size, raw material and access to suppliers
- finally the rule and regulation of the location
when choosing business location it is very necessary to consider the nature of the market that is well suit your business, what people want in that location.
It is good to be where you can have access to transport services, electricity, water etc and also put your competitors in consideration weather you can do well in their mist or you can’t.
Finally make inquiring about the rule and regulation of the location, it is very important because many society has their rule. It may not in favor of your new business.
5. Raise the needed capital: As far as you have identify the right because , you need a fund to nurtured the business or money that is needed to implement the idea and plan you put in place.
mostly often, a new business face the problem of raising capital and not many leaders are serious with people starting with new business because of the attended high risk of failure.
Records and experience have show that most small business in nigeria are finance through personal savings of the entrepreneurs and in addition to soft loans he may secure is from friends and family members.
It is very important to have the right amount of money that can flourish your business.
6. Estimate the cost of required assets: It is very good to estimate the resource that needed for the business.
This estimate should be include the following, the labor , raw material, bills, building equipment, and other third parties like suppliers, bank etc.
This estimate is good to be take directly from the suppliers, experts or agency bodies that render the services in other for accurate.
7.Choose the right legal form of business: choice available to the entrepreneurs are sole proprietorship,a partnership,a cooperative, a franchise, a joint ventures or a limited company.
The entrepreneur is require to carefully consider the merits and demerits each offers in the course of enterprising.
8. Pen down the expected income: setting an expected an expected income tells an entrepreneurs to know how much his business could be making when the business begins.
it is very important because it will energize the entrepreneur to motivate his/her worker(s) to achieve the expected income.
9.Formulate the accounting systems: Accounting system is the process on how all the financial records of the company/business can be obtain.
This records must cover, the labor, raw materials, products, services, sales, expenses, revenue etc, when these record in a daily basis is very relevant and provide
information for the management to make reasonable decision-making and comparing the progress of the company and the stability of the company/business.
Accounting system provides the summary about the states of health of the business at any given point in time, it predicts whether the business is growing or retrogression or making profits or losses.
10.Analysis the marketing techniques: These is the method you can implement for your business to reach the market or your audience, marketing techniques is the
planned action through which the business products or services will reach the market meaningfully, Remember it involved advertising method.
11. Obtain the necessary permits: Many business need a certain permission before the commencement of the business.
If your business need to be register, do that and wait for the approval before lunching your new business in other to avoid harm to your business.
Make sure your permission is don by the right body that in concern,avoid short cut and follow the right procedure.
12. Commence the business: At this point that everything that is required to start a business, has been put in place, what remain now is to start your new business amicably.
But before start running the new business, you need to check the following:
- the material and the necessary equipment.
- the laborer (if you have).
- marketing methodology.
- calculate the expenses. because this would be number one source of motivation.
- compare your content, price ,services and products with your competitors.
- family evaluate yourself to know weather you can run the business or need another personality.
when all the point above has been consider proper and there is no error then you are good to go.
As you start running new business don’t expect high income at the moment.
Because business is another world entirely that you need a lots of knowledge to maximize your expected income.
learn from business expert and influencer to gain a huge knowledge of the business you are into.