Many small and medium
business owners often run into
business crises because they fail to run some due diligence and do some background checks on what it takes to start and run a business. Starting a business takes careful planning and in-depth research among other considerations.
Read more about Business
In this article, we shall look at the top five important considerations to take before launching into your
small business journey.
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Identify Your Skills
Before delving into your entrepreneurial journey, identify your skills. Knowing your strengths and weaknesses can help you navigate through the business world. These skills are divided into personal characteristics which include your personality traits such as optimism, drive, courage, fearlessness, tolerance, risk-taking, etc. Secondly, you have to identify your interpersonal skills such as effective communication, diplomacy, tact, which will be very instrumental for sales, marketing and negotiations. Thirdly, you’ve to also identify your practical or technical skills such as financial accounting, business planning, goal setting, graphical designing, grant writing and so on.
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Research The Market Demand Of Your Idea
Before jetting out on your entrepreneurial journey, ensure you know your market demands on your idea. Find out if there’s a market for your idea, understand which industry your idea falls under, know the market price of your intending products or services, know your competitors, understand the trends of your industry, and how you can increase the market share of your business. You can do this by running a survey through Google Forms, SurveyMonkey, FormsApp, and so on. You can also make findings by signing up for industry journals, where trends are discussed and analysed.
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Check For Availability Of Resources
Transforming your business idea into a tangible reality will require a plethora of resources. Therefore, identify the needed resources for bringing your idea into a reality. Check if the raw materials are available, the cost of production and the equipment needed for your workspace. Identify the facilities you have already and the ones you’ll need to purchase. Ensure they are separated from the other, so as to know your investment costs.
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Work On A Financial Plan
Before journeying into the business world, work on a financial plan. This includes knowing how to calculate and to separate your startup capital, your profits, loss, expenses (rents, utilities, production and shipping costs). Furthermore, as a business owner, identify your benchmark for making a profit.
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Prepare For Failure
As an entrepreneur, you must have the courage to withstand business failures because they will occur. No business, especially new businesses, enjoys an easy ride. This is one of the most important considerations you must acknowledge. Therefore, plan your coping mechanisms, ways of recovering from loss and even an effective exit strategy.
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Prepare For Growth
Although the previous point suggested that you should prepare for failure, you should also prepare for growth, too. One of the considerations you must note is your growth plans. Ask yourself a plethora of questions. What are your expansion plans? How do you get more staff when your business blooms? What are your plans for innovation? Where do you see your business in the next five years? What are your growth plans? How do you secure business funding from investors? Many business owners are overwhelmed by growth, therefore, prepare for it.
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This article was first published on 1st November 2021
nnaemeka-emmanuel
Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.
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