What are the Things You Should Know When Starting a Business? Today, we will look at 17 important information a person should know before starting a business.
Sometimes we just get tired of waking up every morning trying to get ourselves ready for the usual 9-5. And then we get more tired when we remember our nagging boss at the office and some very annoying co-workers.
These thoughts always weigh us down that we just want to quit and start up own business. But what if you can start your own business? You might have a bright idea about a product or a service in your mind but the uncertainty of starting your own business and whether it will succeed or even the thought of leaving the comfort of your secure and stable job does not seem to make sense in today’s world.
But here’s the catch, being your boss can be rewarding, but such is not for everyone. In reality, a lot of new ventures fail and only a few survive because of a lack of adequate knowledge about what they are going into. But fear not! Because also in today’s world, there’s no better time to be an entrepreneur than now. Why? Because there are a lot of investors out there who are ready to listen to people with even the craziest of ideas and are also ready to cough up some greenbacks to see them succeed.
17 Things You Should Know When Starting a Business
So, before you go leaping for joy as you start your entrepreneurial journey, these are 17 of the most important business knowledge one must acquire.
17. Why do I want to start a business?
You should first of all before you start any business or go into any business ask yourself, why do you want to go into that business? If the reason is that you are tired of your job, or because everyone else is doing it, or because it’s the latest trend, then your business might not last. You have to love and be passionate about what you are about to go into, so you will have a strong emotional drive to help you succeed.
16. What problem do You Want to Solve or What Gap Exists in the Market?
Before you go into the business you have in mind, you should try to understand what problems or gaps that exist in the market that you can solve or address. If there exists such that no one has yet served and they intersect with what you like, then you can hit the sweet spot.
15. What is the target market for my business?
Having a target market for the business you intend to go into is ideal for any start-up. Not every product is meant for everyone and so is the time and resources to reach everyone by any company. You should know your target market or the ideal market you intend to go into because it will not only help you set your marketing strategies and development in place, it will as well help you yield higher returns on investment in the long run.
14. How to get those funds?
It is very essential to know where your source of funding for your business will come from. You just can not think about starting a business and expect money to fall from the sky or maybe one ‘good Samaritan’ will just come to you and give you your start-up capital.
Every entrepreneur should have a plan on how to source for funds to jump-start their business. Sources like Bank loans, venture capitalists, crowdfunding or thrift societies or bootstrapping (personal savings)remains the most viable options.
13. Do You have the personal and financial support of friends and family?
You might just be wondering how this is so important to know before you start a business. But the reality of it is, it is very important. Because as an entrepreneur, or a newbie into the world of business, there are good days and there will be some very terrible days.
It is in those terrible times or days you will need the support of your family and well-meaning friends to help you keep up and handle the challenges you are facing, and overcome those emotional times and stay focused.
12. Potential partners
When you intend going into a new kind of business, you should have in mind the need for potential partners in the short-run. People you could benefit from working with, partners from a different sector or business line that can help you connect to a new customer base. [Also Read: Top 17 Richest People in Africa]
For example, if you’re thinking about starting a catering business, then you should also consider forming a business relationship with a wedding planner and supply all catering services to them at a discounted price. It will even help you gain access to their customers and help you get further recommendations.
11. How to go About Your Licensing and legal issues
Starting a business sounds fun and exciting until you realize all the bunch of legal steps and procedures you have to go through. You don’t just open up a business, like a restaurant for example, without prior legal authorization. You need to, first of all, speak to the Local Authority to find out if you need any special licenses to sell in your area. If you do not, you’ll be fined and could be shut down ultimately. [Also Read: 17 Most Beautiful Places in South Africa To Visit Before You Die]
There are a lot of legal obligations to consider and it’s best to get at least one session of legal advice.
10. Write a business plan
I know this should have come earlier than it now, but still, you should write down a well-structured business plan for any business or venture you intend to go into.
Planning is everything! Without a proper plan, you might find yourself just running around, handling too many tasks at the same time, and getting none done in the end. A well-structured business plan will help you keep track, monitor all your processes, from the executive summary to the cash forecasting. Learn how to write a business plan today
9. You will be poor for a while
Not everyone will go through this stage of business start-up, but for the most, it will surely come. So, unless you have a trust fund, or a huge savings account, or maybe a very rich partner or investor, chances are that you’ll be scraping by for a while. But hey! You can choose to let it destroy you, or let it groom you. [Also Read: 17 Most Polluted Cities in the World]
If you let it groom you, it will enable you to be able to make prudent financial decisions in the long run. But during that process of grooming, it sure won’t be easy. You might have to skip hanging out with the guys(or girls), taking vacations or go shopping, because all these are things to do when you have money. But, hopefully, you will remember these tough times and be careful with your earnings.
8. Keep an Open Mind, Don’t Assume You know What to Expect
This is one secret many people are ignorant to when they decide to start up a business. They keep assuming millions when they’re yet to even see a hundred. In the world of business, you will never know what to expect so it’s best you think of the life of your business like the Stock Market. Because like the Stock Market, there will be ups and downs, but hopefully it will turn out for the better over time. [Also Read: 17 Most Expensive Celebrity Houses In The World]
Address key issues, make plans and execute them. Successful people are always defined by their ability to triumph after the storms because no one is concerned by how they scoot through that storm. Napoleon Hill once said, “Most great people have attained their greatest success just one step beyond their greatest failure.” Don’t be afraid to take that next step.
7. Feel Free to Make Mistakes
Are you wondering if you read that right? Look again, because you sure did! Mistakes are part of growing a business. No one is perfect or the master planner, no one started a business and succeeded at once, mistakes are inevitable. If you are scared of making mistakes, you’ll experience difficulty in making progress. [Also Read: Top 17 Most Beautiful Female Celebrities in Nigeria]
Do your best, trust your gut and seek guidance from trusted sources when you need it and keep moving. So, don’t fight with it, don’t try to avoid them, let them come because they are your greatest teachers. And remember, if you never failed or made a mistake, then you never tried something new!
6. Don’t compare yourself or Your Progress with Another’s
It’s natural to feel the desire to make a comparison of your progress against peer businesses. But, you have to be very careful about doing this. Because, irrespective of how successful you are or they are, or are not, you have to focus on you and try to be the best you can be and not waste your energy comparing. [Also Read: Top 17 Most Beautiful Beaches in the world You Need to Visit Before You Die!]
Insurance is very important before, during, and after starting a business. You are required by law to have employers’ liability insurance if you have any staff and public liability insurance if you expect to welcome customers or suppliers onto your premises. [Also Read: 17 Most Expensive Animals in the World – Which Can You Afford?]
You must also have vehicle insurance if you have any business vehicle you use if you sell products you need product liability insurance. Insurance is very essential despite its cost because if your business could survive and the unthinkable happens and your premises, equipment, or stock go stolen or burnt, you’ll need some form of fail-safe to land on.
4. Understand your own strengths, skills, and time available
As a new business owner, you start by handling a lot of processes by yourself. But you need to know when you require additional help. That means, as you progress further into the business, you need to know when to engage the services of an accountant, lawyer, insurance agent, marketing specialist, web page designer, or other professionals. This will help make your management process as a business owner more easier for you.
3. When should You give up on Your idea?
I know a lot of motivational speakers will tell you to never give up on your dreams, which is good, yes! But before you think of starting any business you should consider a whole lot of things, which most are listed here already. And what’s most important is to know when to let go, walk away, and figure out something better if the current one is not working out as planned. [Also, Read: 17 Richest Footballers in the World]
When you can’t generate revenues, customers, or interests for more than 3 months, try calling it to quit! I understand it may be difficult, but consider running in on more loses in the coming months.
2. Know Your Competitors
Entering a market is never easy for most new businesses. But as difficult as it, it is always one of the first tasks to assess the competition and determine who is doing what and how they are doing what they are doing, to help you formulate your strategy to cope. [Also Read: 17 Lovely Birthday Messages to Send to Your Loved Ones]
1. Start small and grow
The first thing to know when starting any business or venturing into any industry is to start small, from scratch, and grow. A lot of people ignore this and just jump into a business, expecting the business to boom immediately. Not like it can’t happen, but you’ll need more than just ‘luck’ for that. [Also read: 17 Most Beautiful Places in Kenya]
It is very important not to despise your little beginning because, no big enterprise, company, or brand today in the world that didn’t start from small. Some even took years before they could make their first million. It takes patience to work accordingly and get your company to grow from what you started it from, to where you want it to be.