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Building a new business

Building a new business

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Tofarati Ige

Starting a new business usually takes a lot of effort and dedication. Follow some of the tips below to make the process easier for you

Do your research

Most likely, you have already identified a business idea; so, now it’s time to turn it into reality. Does your idea have the potential to succeed? According to www.thebalance.com, you will need to run your business idea through a validation process before you go any further. In order for a business to be successful, it must solve a problem, fulfill a need or offer something the market wants. There are a number of ways you can identify these needs, including research and even trial and error. As you explore the market, some of the questions you should answer include: Is there a need for your anticipated products/services? Who needs it? Are there other companies offering similar products/services now? What is the competition like? among others.

Make a plan

You need a plan in order to make your business idea a reality. A business plan is a blueprint that will guide your business from the start-up phase through establishment and eventually business growth, and it is a must-have for all new businesses. The good news is that there are different types of business plans for different types of businesses. If you intend to seek financial support from an investor or financial institution, a traditional business plan is a must. This type of business plan is generally long and thorough and has a common set of sections that investors and banks look for when they are validating your idea. If you don’t anticipate seeking financial support, a simple one-page business plan can give you clarity about what you hope to achieve and how you plan to do it. In fact, you can even create a working business plan on the back of a napkin, and improve it over time. Any plan in writing is always better than nothing.

Plan your finances

Starting a business doesn’t have to require a lot of money, but it will involve some initial investment as well as the ability to cover ongoing expenses before you can generate profit. Put together a spreadsheet that estimates the one-time startup costs for your business, as well as what you anticipate you will need to keep your business running for at least 12 months (rent, utilities, marketing and advertising, employee salaries, among others). You can also attempt to get your business off the ground by bootstrapping, using as little capital as necessary to start your business.

Choose a business structure

Your business can be a sole proprietorship, a partnership, a limited liability company or a corporation. The business entity you choose will impact on your business name, to your liability, to how you file your taxes.You may choose an initial business structure, and then re-evaluate and change your structure as your business grows and needs change.

Pick and register your business name

Your business name plays a role in almost every aspect of your business, so you want it to be a good one. Make sure you think through all of the potential implications as you explore your options and choose your business name. Once you have chosen a name for your business, you will need to visit the Corporate Affairs Commission to check if it’s trademarked or currently in use. Then, you will need to register it.

Get licences and permits

Paperwork is part of the process when you start your own business. There are a variety of business licences and permits that may apply to your situation, depending on the type of business you are starting and where you are located. You will need to research what licences and permits apply to your business during the start-up process.

Choose your accounting system

Businesses run most effectively when there are systems in place. One of the most important systems for a small business is an accounting system.Your accounting system is necessary in order to create and manage your budget, set your rates and prices, conduct business with others, and file your taxes.

Set up your business location

Setting up your place of business is important for the operation of your business, whether you will have a home office, a shared or private office space, or a retail location.You will need to think about your location, equipment, and overall setup, and make sure your business location works for the type of business you will be doing.

Get your team ready

If you will be hiring employees, now is the time to start the process. Make sure you take the time to outline the positions you need to fill, and the job responsibilities that are part of each position. If you are not hiring employees, but instead, outsourcing work to independent contractors, now is the time to work out a proper agreement.

Lastly, if you are a true ‘solopreneur,’ hitting the business road alone, you may not need employees or contractors, but you will still need your own support team. This team can be comprised of a mentor, business coach, or even your family, and serves as your go-to resource for advice, motivation and reassurance when the road gets bumpy.

Promote your small business

Once your business is up and running, you need to start attracting clients and customers. You will want to start with the basics by writing a unique selling proposition and creating a marketing plan. Then, explore as many business marketing ideas as possible, so you can decide how to promote your business most effectively.

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