HOW DO YOU START A BUSINESS OF YOUR OWN?
Be certain that you want to start your own business not because you are necessarily unemployment and would want to get your hands on just something. Starting your own business is a bit difficult than searching for a new job in other companies. There are several sacrifices that you need to make when starting your own business.
Decide on the area to invest in. You need to do some extensive business prospecting and also consult your inner spirit to be sure on the area to invest in. Will a retail business or wholesale business do the trick? Will you be better off going into consultancy? This task is very important because if you get it wrong here, the business will definitely fail.
Do some research on the chosen area of investment. You must not rush into making a choice so soon and start pumping in capital. Research on the amount of capital you need to inject into the new business from the scratch. Determine the return on investment and how long it will take for the business to payback the investment. Determine the number of competitors and their spread. Determine the market share of your competitors. There are several businesses with many competitors not widely dispersed. As a new entrant into such businesses, you are likely to get into difficulties when it comes to recouping your investments.
The market research will help you to develop a business plan for your future business. The business plan may not be necessarily long but must answer very salient questions such as the type of venture; the number of competitors; pricing; costs; return on investment; payback period, management structure etc. More often than not, the business plan lays out the details of business establishment; business running and returns over a period of time. The business plan must be such that anybody who takes it clearly understand it and is able to implement the plan independent of the person who developed it. The business plan is an important tool to obtain loan from financial institutions.
Several business structures exist and as an aspiring entrepreneur, you got to select a business structure of your choice. Will your business be sole proprietorship, partnership with others or limited liability etc.? All these have their advantages and disadvantages.
A business is run by several experts such as an accountant, human resource officer, receptionist etc. You need to get your team in place and this depends mainly on the demands of the business. At the inception of the business, an accountant is usually needed to manage the cash flow. You also need virtual advisors such as an attorney and a business advisor.
Get some other things in place! You may need to register your business officially; get an internet domain for your business and ensure that your business fits with all the national requirement of your country.
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