Understanding the steps on how to start a business of your own will contribute to the business’s success. Starting a business requires a lot of activities such as market research, planning, financial decision-making, and others. However, you may be overwhelmed by the tasks involved to start a business of your own, if you don’t know the steps to take. There are steps to take when you want to start your business. So, this article explains the best steps on how to start a business of your own in 2021.
Steps on how to start a business of your own
It is necessary to know that different steps can be used for different businesses depending on the business model. But, these steps will help you with the general steps on how to start a business in Nigeria and the world as a whole. The steps include:
Readiness to start a business
The first step on how to start a business of your own is to ask yourself whether you are ready to start your own business from scratch or not. Your mindset to own a business is a determinant when deciding on whether you are ready to start a business. This is because turn your dreams into realities is like turning nothing into something and it requires entrepreneurial skills. You need to be mentally ready to take all the challenges that come with starting a business. This is important because failure to have the right mindset can destabilize you when you are facing challenges. If you have the right mindset to start a business, how to achieve your goal will be your focus.
Type of the business
The next step on how to start a business of your own is to decide on the type of business you need to start. When you are deciding on the type of business to start ensure you consider your passion, knowledge, hobby, skills, lifestyle, and others for that business. Choosing the business ideas to start is very task and you need to use proved and tested approaches to find out the business ideas to start. In deciding the type of business to start, you need to consider factors such as the size of potential opportunities of the business ideas, the nature of the market (whether it is growing, trend, or fad market), the level of competition of the business and the necessary standards, regulations or restrictions applicable to the business.
However, determine the potential opportunities size of your business ideas will help to decide on whether it matches your ambition or not. The level of competition will help to determine whether the market is established or not as well as the differentiation strategy to use if it has a high degree of competition.
The next step on how to start a business in Nigeria and any country of the world is to conduct market research to determine and evaluate your target market. Conducting market research will help to determine customers who are going to buy your products or services and your competitors. This will help to determine the market size, opportunity size, value proposition, and others to include in your business plan.
However, you can conduct your research through Google searches, talking to those who are already in the industry, reading books relate to the industry, and attending seminars or classes. If you don’t have time to research by yourself, the professionals can do it on your behalf and provide an objective research report to you.
Location of the business
The next step on how to start a business of your own is to choose a location for your business. Location is very vital to the success of the business. Therefore, it is an important decision for you to make. You have to decide whether you launching brick and mortar business or an online business. However, if you are launching brick and mortar business factors such as nearness to the market, raw materials, social amenities, and others must be considered. Your choice of the business location can determine your revenue, growth, legal, standard, and regulation requirements as well as taxes.
Selection of business structure
The next step on how to start a business of your own is to decide on your business structure. There are many forms of business structure such as sole proprietorship, partnership, limited liability company, and others. The business structure varies from country to country. In deciding your business structure, you need to consider the tax and legal implications of the structure. A sole proprietorship business is the simplest and easiest form of business, but you will have unlimited liability. However, for a company, you have limited liability, but it requires a lot of paperwork to register.
Name of the business
The next step on how to start a business of your own is to decide on the name of your business. When deciding on the business name, you need to choose a name that perfectly fits your brand. Additionally, you need to avoid already used business names to avoid legal disputes in the future. If you don’t know the name to give your business, you can make use of free business name generators to give a variety of names from which you can choose or edit one for your business. However, it is important to make sure that your chosen name should be concise and easy to memorize, spell by your customers.
Business plan writing
The next step on how to start a business of your own is to write a plan for your business. This involves putting your business ideas into paper. The business plan is the foundation of your business. So, it serves as a roadmap to achieve business success. The plan will state the structure, mission, vision, strategy, value proposition, market plan, financial plan, and others for your business. However, there are two types of the business plan; Lean startup business plan and traditional business plan. The lean startup business is for business that is easy and simple to operate while the traditional business plan is a comprehensive plan that is required when the business needs funds, especially from traditional financial institutions.
However, your business plan will help you to gives clear directions of your business to employees and partners. It helps to determine how much money require to start your business. So, you can decide on how to obtain the funds required. Your business plan is a document that will first connect your business to your potential investors or lenders.
Registration of the business
The next step on how to start your business in Nigeria and other countries of the world is to register your business with appropriate authority to protect your brand. Register your business with appropriate authority makes your business to become legal.
Launching and promotion of business
After you have laid the foundation for your business, the final step on how to start a business of your own is to launch the business. However, the business may be easy to launch, the most difficult part is the promotion of your products or services. Promotion means getting your products or services in front of your customers to generate sales. You can use social media networks such as Facebook, Pinterest, Instagram, Twitter, and others to promote your business.
Starting your own business is very challenging especially when you are doing it for the first time. However, with the steps listed above on how to start a business of your own, you are well equipped with the knowledge and skills required to start your business. Applying these steps will enhance your business’s success. Surely, there will be mistakes, but use those mistakes as review processes to make a better and informed business decision.
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Afeez is one of the founding partners of Marasas Consulting limited. He consults for both individuals and entities in the area of accounting, management, audit, tax, and investment. He has a wide range of experience both online and offline which allows him to provide relevant and timely professional advice and assistance to business owners with their accounting, tax, management, audit, and investment plans.
Afeez is a member of the Institute of Chartered Accountants of Nigeria (ICAN) and a member of the Nigerian Institute of Management (Chartered). He is a certified Google analyst and strategist. He earned his Bachelor degree in Management and Accounting from Obafemi Awolowo University, Ile-Ife, Nigeria, and earned an ordinary national diploma in Accountancy from The Polytechnic of Ibadan, Oyo State, Nigeria. He earned certification in “Excel Crash Course” and “Reading of Financial Statement” from Corporate Finance Institute, Canada.
Afeez is dedicated to helping clients achieve business success by helping them to establish solid and sound accounting, tax, and financial processes.