Business Digest Today

Steps in Starting a Business

1.      Prepare a business plan

2.      You should know enough about the business, enough to enable you start

3.      Choose a location strategically

4.      Would you need a permit or license to operate

5.      You will need to use the right equipment and personnel.

PREPARE A BUSINESS PLAN.

Your detailed business plan will reveal the locations of your potential clients and suppliers and you need to position your business where they will easily have access to you. The nature of your business will determine the number and capacity of work space that will contain your workforce and stock that will service your customers.

A business plan is not as scary as it sounds. Even if you don’t intend to source any capital from banks or investors, it is important that you organize your thoughts on paper. It doesn’t have to be complex or too elaborate, just something to keep your eyes on the big picture. The business plan will allow you to easily identify the obstacles and anything you may not have considered. Your business plan should consider the prevailing market price for the type of service you want to render and how much competition there is. You also need to estimate the profit you’re likely to make in the first, second and third years. Is it sustainable? Is it worth the time, effort and capital? It’s usually wise to keep 8-12 months working capital to adequately support the business. We will discuss what working capital is subsequently. This is just to enable you not encroach into the capital invested especially when such money are sourced. We will advise also that an expert in drafting business plans, feasibility studies is contacted. You will surely need an independent and objective appraisal of that business from someone else who do not probably have sentiments for the growth of the business not matter how small it might be, it will cost you something small to get this road map which will serve as a guide as the business progresses. May I tell you that recently Twenty Million Naira only (N20,0000,000.00) was paid for just a feasibility study to be done by a Consultant for the establishment of a private university in South-South Nigeria(name withheld). Conclusively, the need for a business plan cannot be over-emphasized. Even if you think you don’t need it now you will surely need it later. Anyone who wants to assist with a loan, grant or other source of funding will ask for your business plan.