Begin building the business when you have an alternative
source of income:
Given the high cost of living and the fact that no legitimate
business is likely to produce profits immediately, it is imperative that you
have another source of income to keep you going through the initial stages of
your small business. There’s not much a hungry entrepreneur can achieve.
More is better:
No man is an island, “wisdom exists in a
collection of advisors” and all other proverbial sayings like that highlight
the importance of setting up a support system- people who can listen to your
ideas, fine-tune them for you or even chip in valuable advice along the way.
One of those tips they give may be the difference between success and failure
of your business. In addition, since you can be skilled in all the core areas
of a business, a support team can help you reduce costs along the way. Lawyers,
accountants etc., are usually very valuable support members.
Take time to invest in a strong business plan:
A beautiful
idea is usually the beginning of every successful business, but is also the
beginning of every failed one. Thus, it is important for you to articulate
these ideas into a comprehensive business plan that shows on paper exactly how
the business can succeed. Present and future investors, mentors and others will
feel more confident backing you up if you have a sound business plan.
Nairametrics can help with your business plans.
Determine who/what your sources of finance will be as well
as their availability:
Given the current financial climate in Nigeria, very few
banks if any, will be ready to invest in small businesses. And if you are
fortunate enough to find any who is, the crippling interest rate may mean you
are better off not doing the business. So, scout for other sources of
funds-savings or informal lenders. You can look at the current state of crowd
funding in the country, although enabling legislation still seems to be a
hindrance. Whatever your source(s) is/are, ensure you have them locked down
before you begin implementation of your business plan.
Create demand before supply:
It makes no sense to go
investing huge sums of money in creating a product or service that will lie
fallow in the store. It is necessary that you ensure that what you are about to
offer is what the market wants. Depending on the resources available and the
scope of your business, there are different options available ranging from
simple observation to contracting out a market research consultancy.
A first impression lasts longer:
How you come across during
your first meeting with a potential investor or customer is very important. So,
from the word go, get all the professional business items that make you look
professional such as business cards, business address and a dedicated business
line; the first customers are key to your success. Make sure you make a good
impression.
Make sure you find your business interesting:
Your business
is not your favourite pastime — you can be forgiven. You don’t enjoy the
business — you cannot be forgiven. This is possibly the most important question
to ask yourself before starting out. You simply cannot last long without the
key attributes as persistence, determination and patience. You cannot have
these attributes if you do not enjoy what you are doing.
Get your records straight from the outset:
A lot of small
businesses often make the mistake of thinking that keeping proper accounting
records is not very important. If you start a business that you feel one day
will become something big, then why not start now to keep account of every
single naira and kobo. A lot of businesses forget that the key to business
expansion is showing customers, investors your track record from day one and
you cannot achieve that without proper book-keeping.
You don’t need to have money to start:
A common assumption that
you need money to start a business. While money is indeed critical to start a
business, it’s not a prerequisite. In fact, what you need most are the vision,
courage and determination to start. Without that, no amount of money can help
you start a business.
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