One of the most important decisions that one can ever make is the decision to start up a business. Most individuals join businesses in Nigeria due to unemployment, freedom or the hope of earning more money. However, what I have realized is that starting a business does not only concern having an idea or even having money.
It must be well prepared and otherwise, they can so easily lose all. I knew that there are steps to follow before I ever thought of beginning anything but I would like to mention seven of them here.
The initial one is to find the correct idea. Any business will not operate everywhere. A successful business in Lagos might not work in a small town. Similarly, there are businesses, which are seasonal and those, which can be operated throughout the year.
The only thing that matters is to question: what do people who surround me really need? What is the problem that I can solve for them? In the event that your idea is to solve a real problem, people will naturally seek you.
The second one is market research. This is just a matter of looking before you can plant your seed. Market research involves discovering whether or not people really are going to purchase what you have to sell. It also entails assessing the individuals who are already in the same line of business and posing a question to yourself about how you can be different.
In case you are planning to open a food booth, say you would want to open a food booth, you should see what other people are selling. Is it local food, fast food or even pastry? Then consider what you may make of your own. By the time you realize that you are building a business that is not required, it may be too late without market research.
The third one is to draft a business plan. This need not be a very large book on grammar. A business plan may even be a mere paper that elaborates the objectives, amount of money you require, type of people you expect to attract and the way you are going to expand. Once I rushed to run something small without planning, and it took very little time before I got lost. Nevertheless, you have a course to take when there is a plan.
Another step that is highly essential is organizing your money. Starting capital is not the only thing about business. It is about thinking ahead. You should have a computation of the amount of money you will require to pay the rent, wages, electricity and other overhead expenses.
In Nigeria, there are surprises almost always in terms of costs, and thus you need to be ready. Most of the businesses fail not due to a bad idea but because the founders of the business did not figure out the figures.
This is the fifth step of registering your business. It would seem that this section is not crucial at first but would be essential later. In Nigeria, by registering with the Corporate Affairs Commission (CAC) you are providing your business with a legal name. It simplifies the process of opening a business account, earning the trust of customers, and even securing such opportunities as loans or contracts. A registered business appears more serious as compared to one that is not.
The sixth one is to create the right team. However brilliant you are, you cannot do everything by yourself. People will have to be on your side, and you will need a few or one to help you in the beginning. You just have to get people who are straight, hard working and ready to develop with you. Nigerians do not trust and a single wrong individual can clear up everything that one has created. This is the reason why it is preferred to begin with a small yet dependable team.
The final thing I think is significant is that I should start small and build up. Most individuals are also in a hurry to begin on a grand scale in order to make impressions on others but it is not all bad to begin small. It provides you with the opportunity to educate, error and correct without wasting a lot of money. One such example is that rather than renting a large shop at once, you could start off with a home, online or a smaller space. As the business expands, you are able to expand. By doing this, you are not put under unwarranted pressure.
To summarize, business is not about haste or imitating others when starting a business. It is concerning adequate preparation. Between picking out the appropriate idea and conducting market research, writing a plan, organizing your money, registering, finding the appropriate team, and starting small, every step is extremely crucial. I am a Nigerian, and I realize it is not easy to conduct business in the country but I also understand that, preparation is everything. With such measures, one is likely to be successful and the process will not be as challenging.