5 Things You Need To Know Before Starting A Business

Many people have the intention of starting a business but do not know how to go about it, also many have started but are finding things difficult, probably because they did not go through the proper procedure or did not study the business properly.

Study shows that many businesses fail right from the starting upstage and in our Nigeria settings, many people fail to get necessary consultation before starting a business. And in another scenario, the proper consultation may not be readily available especially for small-scale businesses. Most of the commercial banks fail to meet up to their responsibility for small scale businesses.

There are some steps or some things you need to know and follow when starting a business, smalls or large scale business.

1. Get a Business Plan

The first thing to do when starting a business is to write down a business plan. Your business plan should consist of the type of business, how much it will take to start it, how much capital you have, and how much you will need to borrow. Also, the business plan should consist of your intended profit and plans on how long and when you will intend to pay your loan. The business plan should consist also of day to day expenses in running the business.

2. Consulting and Training

You have to get an expert opinion about the business but financially and technically. It is advisable to pay for this service so you will get the proper attention and to carefully sort for knowledgeable consultants in the area of specialization. In some cases, you may have to sort consulting from more than one consultant. Also if necessary it is important that you go for training in that business, as this will give you firsthand experience before starting. The length of training depends on the kind of business.

3.Business Location

Now, this is a very important aspect of a business, when running a business no matter the kind of business, location is very important as this will determine the number and type of client that will patronize you. A business location that is easily accessible and in a safe environment will make the client comfortable in approaching your office for business.

Read Also: Reasons Your Business Need an Online Presence

4. Sorting for Capital

Capital is very important as it is one aspect that is needed, a necessity in starting a business, because with all the ideals and training, without the capital. Your dreams will not kick-off to materialize. Some may be lucky enough to have capital on their own, maybe from savings or given to them by relatives of friends. Now sorting for capital can be a heinous task as so many requirements are needed by the banks and cooperative, but with financial advice and at times with a well-written business plan, the bank or financial institutions can grant a loan for a business.

5. Register and get Proper Paperwork

Now it is advisable to register your company as this will give it legal standing and trust. Also, get proper tax paperwork done. It is also advisable to create a separate bank account for your business for proper bookkeeping.

These are some proper steps to take in opening your business and in order to place yourself on a solid successful foundation. Proper bookkeeping and accounting is needed as this will help you know where you stand financially and it is needed as it may help you sort for loan when institutions ask for the company account statements.


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