Experts say there are steps required to start a successful business. Take one step at a time, and you will be on your way to successful small business ownership.
Step 1: Do Your Research
Most likely you have already identified a business idea, so now is the time to balance it with a little reality. Does your idea have the potential to succeed? You will need to run your business idea through a validation process before you go any further.
A brand strategist Lanre Philips says you don’t go into a business just because you have an idea but because you want to solve a problem. “In order for a small business to be successful, it must solve a problem, fulfil a need or offer something the market wants”.
Author of ‘Starting a Successful Business’, Mrs Ekatte Umoh also corroborated this. “Simply find a need and fill it. There is always a gap in the market, recognise that gap and provide a solution.”
There are a number of ways you can identify this need, including research and even trial and error. As you explore the market, some of the questions you should answer include:
• Is there a need for your anticipated products/services?
• Who needs it?
• Are there other companies offering similar products/services now?
• What is the competition like?
Step 2: Make a Plan
You need a plan in order to make your business idea a reality. A business plan is a blueprint that will guide your business from the start-up phase through establishment and eventually business growth. Experts say a business plan is a must-have for all new businesses.
Step 3: Plan Your Finances
Starting a small business does not always require a lot of money, but it will involve some initial investment as well as the ability to cover ongoing expenses before you are turning a profit. Anticipate what you will need to keep your business running for at least 12 months, like rent, marketing, supplies, employee salaries, your own salary and so on.
Step 4: Choose a Business Structure
Your small business can be a sole proprietorship, a partnership, a limited liability company (LLC) or a corporation. The business entity you choose will impact many factors from your business name and to your liability.
You may choose an initial business structure, and then re-evaluate and change your structure as your business grows and needs change.
Step 5: Pick and Register Your Business Name
Your business name plays a role in almost every aspect of your business, so you want it to be a good one. Make sure you think through all of the potential implications as you explore your options and choose a business name. You can register a business name with the Corporate Affairs Commission (CAC) for N5, 000. The federal government reduced the rate from 10,000 to enable small business register their business names.
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