When one decides to start a business it is one of the important choices that an individual can ever make in life. It is not merely a question of selling some product or service but rather about creating something that could develop and transform your life. Owning a business today is one of the dreams of many young people in Nigeria as there is no guarantee of getting a job and they prefer to generate their own jobs.
However, opening up a business is not as easy as you just wake up in the morning and declare that you are a business owner. You are supposed to do a few things before you can get your business to survive and grow. Here I will tell you five of them, and I think they will be of service to anyone who may be contemplating initiating a business.
The first thing you require when starting a business is the idea. Everything rests on your idea. You have to be aware of what you have to sell or what service you have to offer. There are many individuals who hurry up in doing business because they find someone earning out of the business but in reality they lack their own good idea. This is the reason why certain businesses fail in a short time.
One gets a good idea by observing and spotting problems experienced by people. To take an example, when you reside in the community where electricity is not constant, you will consider selling solar products or rechargeable lamps. When you realize that there are people in your location who could not afford foodstuff, then you can consider establishing a food supply business. It should not be merely a clear idea of imitating other people. It must be something you know and something that can help solve real problems for the people.
In the next step, you need to research the market after an idea. I would say that market research is as much as doing road checks before you begin driving. You should learn the path where it is smooth and where there are potholes. Market research implies such questions as: Who are my customers? Where can I find them? To what extent are they going to pay? What are my competitors and what do they do well?
In Nigeria where people have already started so many businesses, market research will enable you to know how to come out. An example of this is when you are planning to launch a clothing business research can tell you whether to target children's clothes, corporate wear or traditional attire. It will also assist you in knowing how to price your products. I recall a time I once had a thought of selling phone accessories and I visited Computer Village in Lagos to get answers, examine the prices and even monitor customer behaviour. Even that small study made my eyes open on a lot of things that I was not aware of previously.
Another aspect you should plan before going into business is money. No business can develop without financial support. You are not supposed to go out spending money blindly, you require a financial plan. Question: How much do I need to begin with? What percentage of that will be rent, equipment, raw materials or marketing? I will have no money where I will have it?
Poor financial planning is one of the causes that many businesses fail in Nigeria. Others spend all the capital they have to hire a large shop so as to flaunt and later on they are unable to purchase and fill the stock in the shop with enough goods. Some borrow money to such an extent that they are unable to pay back because they failed to do calculations. In order to prevent this, you can begin small and expand as time goes by. Also learn to keep your personal money out of your business money. A financial plan will assist you in controlling expenses as well as consider ways in which the business will generate profit.
The legal and administrative aspect should also be known before one begins a business. This step is quite necessary and is ignored by many people in Nigeria. One of the ways through which you can demonstrate seriousness is by registering your business with the Corporate Affairs Commission (CAC). Registration makes customers trust you more when you register your business. It is also able to open the gate to contracts and future partnership.
Other than registration, you need to know simple facts such as taxes, licenses and other levies imposed by the local government. It might seem stressful, however, it is better to be ready than sorry. In case you intend to conduct your business online, you can also have to study various aspects of digital policies or payment platforms. The better you get familiar with the legal and administrative aspect the better your business will be secured over time.
The final step that you need to take prior to establishing a business is to prepare yourself psychologically and develop the necessary network. Doing business is not a smooth process. There will be good days and there will be bad days. You might surrender too early in case you are not strong-minded. This is the reason why you need to become patient, disciplined, and tough.
This is also, attempt to surround yourself with the right people. It is highly important about networking. Meet other business owners, visit seminars and seek mentors who can guide you. It only takes a few words of advice on a seasoned person to help you to avoid making expensive errors. In my personal experience, I have come to know that relationships are important in business. People in your circle can make you get customers, funding or opportunities, which you might never get to come across.
The idea of starting a business is a big dream but these dreams only materialize when you prepare. To launch out, you need to have a good business idea, have proper market research, have a plan on how to do your finances, know the legal part and have the proper mindset and network. By doing so, you are likely to succeed a lot more.