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BUSINESS

5 MAJOR TIPS FOR YOU BEFORE YOU START YOUR BUSINESS

Free-Money4Starting your own business is always time consuming and a bit difficult. The 5 major tips for you before you start your business is discussed below.

Be committed to the business because anything you are committed to is likely to succeed. You may have to forgo or reschedule some cherished holidays in order to make time for your business. At the inception of the business, you are likely to make some lapses but once you are committed, resolving these lapses become a bit easier. In some cases, you may have to also forgo your salary but ensure that the salaries of other employees are paid timely.

Secondly, you should have the drive, discipline and determination to make the business successful. Implementing some things may not work initially but that does not mean that you have to give up. You got to try other means to achieve the desired results. When you plan to do something that will help the business grow, be disciplined to ensure that it is done. If you have staff, motivate them to also develop drive, be disciplined and determined to support the business to grow.

Develop your mind in the business area you intend to go in. Having the start-up capital alone does not guarantee a successful business.  Acquire some knowledge in the business area of choice through reading of books, downloading and watching videos on the internet, attending some essential short courses. The length of time spent in acquiring knowledge may not be too important but the quality of information being accessed is what matters. You should be certain on your ability to manage some aspects of the business and engage outside hands to manage the areas you cannot handle.        

Get start-up capital for your business. New businesses take some time to start making some reasonable returns on investment, however, during this time, you will be paying salaries, rent, power, depreciation and other running costs. Therefore, the business must make arrangement for all these expenditures and anticipate that at the appropriate time, as specified in the business plan, profit will be accruing. The start-up capital may come from your own pocket or from the bank or from relatives. If the start-up capital is coming from bank or relatives, it must be properly documented in official agreements including the payback period.

Finally, you got to look for support from within – that is, from your home. It is said that most successful businesses are as a result of supportive spouses. Your spouse may provide some of the start-up capital without interest. During the establishment stage, he or she may also work for the business without receiving salary and this helps to reduce the expenditure of the business. In addition to these helps from spouses, they also exhibit emotional support and love which go a long way to help the business grow.  

credit to ‘fanpop’ for above picture.

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BUSINESS

WHICH BUSINESS SHOULD I CHOOSE?

 

Once you are sure that you want to set up your own business, the next critical question to consider is ‘which business should I choose?’ Several options exist and even makes it difficult to settle on one. Also, some businesses such as the pharmaceuticals, medical laboratory science etc. require large investment capital and or technical knowledge to commence. On the other hand, businesses dealing with food products, imports/exports may not require large investment capital and or technical knowledge.

The old-fashioned approach of choosing a business prescribes the following process:

 -You first select the business area of interest

-Carry out research in that business area including the models available. The research will usually reveal the areas of need which can become potential business areas. Your research should assess the level of competition.

-An initial business plan is then developed, reviewed and finalized.

-The question of “How much fund you will need to commence the business” has to be answered.

-Depending of the amount of funds required, you may seek for external support.

-Commence the business.

This approach is time consuming and you may even regret spending enormous time and money researching into something that had proved to be not worthwhile, however, you would have saved yourself from a big future mess in trying to establish such a business.

The second approach, which is not time consuming, is to start doing what solves the needs of people and love what you do. This approach is a departure from the popular theory of doing what you love and money will follow.  

These two approaches should not be seen as mutually exclusive from each other. These two can be combined in a way that will minimize cost and yield the best result in determining the business area to go into.

All said and done, it is always better to start with an idea and build on it. Business ideas can come from:

-what you are very passionate about and can be a source of solving the needs of society.

-through inspiration. A thought can drop on your mind and may be the source of your future salary.

-you can also get an idea through observation of your environment to identify needs.

-you can also get an idea through already existing business operations. You may replicate this business idea in other locations that have not been covered by the existing business. A business idea is what gives birth to a business.  

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BUSINESS

OWNING YOUR OWN BUSINESS- ADVANTAGES

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Owning a business comes with several advantages. A few of these advantages are discussed in this article. Some challenges also arise with managing your own business but it appears that the advantages outnumber the challenges.

You have the privilege of being in control. You have the power to make your own decisions rather than taking orders from a superior in the case of working for another person. Of course indirectly, you take orders from your cherished customers in order to win their favour. When it comes to running the business, you have the opportunity of planning it to suit your convenience. However, this flexibility should be managed well so as to avoid any challenges that might arise. For instance, a family woman who is also an entrepreneur certainly has some level of flexibility in managing the home and also giving out her best as an entrepreneur.

Owing a business is an opportunity to live and build something meaningful. Everybody has a unique ability to create and this is an opportunity to bring your unique creativity into fruition. As the director of your business, bring out that uniqueness in you rather than being a copycat.

You have the opportunity to serve people (customers). Serving other of God’s children is one of the areas to get fulfilment in life. As you serve and serve properly, money will certainly follow. The amount of income you will make in your own business is a function of the quality of service you provide.

You are likely to have a positive impact on the world. Exhibiting your uniqueness in your business and solving the needs of people results in impact. The discovery of Microsoft has solved several challenges of the world. Your own business is also likely to solve several challenges of the world.

You are likely to make more money relative to being an employee in another company. Managing your own business does not promise a truck load of money within a short period of time but at least, you are guaranteed some level of income. Making more money depends on the level of service that you offer society. Always ensure that your services are distinguished and unique and it will attract the desired amount of money.

With the list of advantages above, consider setting up your own business and reap the benefits that come with it. God is always happy when His children provide services to other children.

Picture credit to ‘fanpop’

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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