Category: BUSINESS

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BUSINESS

HOW DO YOU START A BUSINESS OF YOUR OWN?

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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.          

 Photo credit: canstockphoto

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BUSINESS

SOME DO’S AND DON’TS ABOUT STARTING A BUSINESS!

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Already reporting to an employer and starting your own business alongside is difficult but is one of the sure ways of making some additional income. In this article, we discuss some do’s and don’ts about starting your own business.

The Do’s:

Consider your new business as a part-time one in the beginning whilst you work for your employer. In doing this, you will be earning some additional income and the impact of the part-time business becoming unsuccessful is minimized.  

Check the requirements in your employment letter. Sometimes, the employment contract states that any innovations that result from the use of company equipment and company time become the property of the employer- this includes even innovations outside of the premises of the company. Be sure you are conversant with the company policy regarding establishing personal businesses.

As you begin making some returns in the new business, keep part of the returns and use this income to run the business at the time when you resign from your job to take full control of the new business. At least you will have something to live on and run your own business after resignation.

If your personal business is not a competitor to that of your current employer, it is worth informing colleagues about your personal business. It is possible your colleagues can become part of your clientele base or may even become co-investors of your personal company.

Plan your time very well because owning a personal business should not compromise your much needed output in your current job. There are some activities you may have to sacrifice for the time being because your time may be much needed in the new job whilst you continue to deliver in your current job.  

You may consider getting some few hands to help out with the new business since you will always not be available to manage it.

 Don’ts

Avoid using company equipment for your new business. Avoid sending e-mails relating your business using your employer’s e-mail system because there can be legal implications.  

When your personal business begins to make some gains in the beginning, don’t think of resigning quickly from your current job because new personal businesses have unstable life cycle. Some reasonable amount of time is required for the new personal business to get established.

Some business ventures do not lend themselves to part-time so be careful which area you want to invest in.  

Don’t promote your business during working hours. It is unethical and you may be penalized for using company time for promotion of your personal business.

At the right time, don’t hesitate to resign from your current employer and take up full employment with your personal business. You can do a lot when you take up full responsibility in your personal business.

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BUSINESS

CONSIDER CREATING A BUSINESS!

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When I was growing up, the system around me taught me that, I have to go to school and learn hard; complete a university or a tertiary institution; look for a job from existing companies or institutions and start working. I thought the process of getting an employment with companies was so easy until I continuously submitted applications to fill job vacancies of many companies for close to two years before being called for an interview by one of the companies I had applied to. Several mates of mine also had to wait for some number of years before landing on their first job even though some others were employed earlier than expected.   

Many youths have associated themselves with the ideology of getting a job from already existing companies after school. I have come across several graduates of tertiary institutions moving from offices to offices to drop ‘application for employment letters’. Usually, the demeanour of such persons show how desperate they are for jobs and one can easily guess the number of years they may have been waiting to get employment. For how long can one wait to fill vacancies that may not exist?

Creativity is an innate and precious characteristic of man. God created Adam and Eve to dominate the earth. This implies that man has the ability to create using resources that God has already provided and even create out of nothing. Employers have been creative enough to establish businesses that provide good(s) or service(s) to members of the society. These employers located a need of society and have provided solutions to these need(s) in the form of businesses.

Each and every one of us is unique. What one person can do, another person may not be able to do. Each and every one of us has a unique style of creativity. Some of us can write songs; some are good in the arts; some are good in discovering new recipes; others are good in cleaning of clothes etc. What is important is to locate your style of creativity and develop it. The purpose of education is to sharpen our style of creativity for us to start unique activities including setting up of new businesses. All other necessities such as initial capital, logistics, human resource etc. come after locating your style of creativity.

To conclude, if you are a graduate who has been home for several years and looking for job and not getting one, then reconsider starting one. You may already be employed by existing companies but you can start a business of your own. Joseph, King Solomon, Isaac etc. were all businessmen and their businesses contributed to their prosperity. For King Solomon, he even traded in gold.

Image courtesy of stockimages/FreeDigitalPhotos.net

Categories
BUSINESS

SUMMARY ON LEADERSHIP SERIES

90309244This is the summary of our leadership series.  The  qualities of good leaders are chronicled below:

Character traits:

1.Empathetic:

-modest

-can use strengths

-does not seize power

-have their own natural way of influencing

2.Dynamic:

-Take calculated risks

-take advantage of opportunities

-act at the right time

 

At work:

1.Motivator:

-Team spirit

-Stimulating for others

-a guide and model for colleagues

2.Entrepreneur:

-Innovative

-ready to fight for the group

-promote the group

Inter-personal relations:

1.Communicator:

-Do not impose their influence

-share their experience

-provide positive reinforcement

-Able to listen to others

-not always right

 

References:

Comment déveloper votre enterprise, Banque fédérale de développment, Canada, 1986

Gestion efficace pour votre entreprise. Banque fédérale de développment, Canada, 1983

Animation et travail en équipe, Pierre Choquette, Economie rurale, Com 16277, September 1990

Construire ensemble, Notre leadership dans une économie en changement, Agropur.