Tuesday, 3 March 2015

Things To Consider Before You Start That New Business

Running a business is good but it is also important to critically consider these factors/ steps before starting a business;

1)      Make a decision to know if you are really ready to start. Under this you need to ask yourself these questions;

a)      Why are you getting into the business?
b)      Will your needs be met by the business?
c)       What type and level of skill do you have?
d)      What are the goals of your business?
e)      Merits and demerits of starting your business?
f)       How much time are you ready to put into your business depending on what you will be needing?
Most businesses that are successful have a combination of interest and motivation of the individual coupled with the idea and level of skills put into the business.

2)      Spend some time doing your market research that will work with the idea for the business.  At the end your research should answer these questions ;

a)      Which service are you providing?
b)      What product are you thinking of pushing in the market?
c)       How will your idea be protected?
d)      Do you have any idea about your competitors?
e)      Where is the market for your product?
f)       How realistic are your ideas in achieving the desired result in the market?
g)      What is that special thing that your product will have that will differentiate it from others?
h)      How buoyant are you financially to fund this business?
i)        Do you have the right skill to fit in the market?
When the market research is properly carried out it can lead to successes in your business.

3)      Choose the business you want to do and have a good structure for it.
This is important because owning a business can at times require a lot of investment of time and money in order for it to succeed, the structure simplifies how the shape of the business will look like;

a)      Do you want a sole Ownership structure where all the funding and time will come from you alone?
b)      Will it be a partnership, where you together with other people will own the business and contribute together to the success of the business?
c)       Or you will prefer a company?

It will be advisable to seek the opinion of a business developer to help choose the best structure for the business depending on the intended size, level of tax that will be incurred, servicing and operational costs and insurance.
To be continued.........


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