7 Things to Consider when setting up your business
Setting up a business is always a challenging venture. It is the reason why a lot of people dream only in their heads without ever daring to accomplish it. The fear of failure makes so many people incapable of taking the risk.
However, as they say, nothing ventured nothing gained. you stand a lot to lose by not at least trying out your ideas, who knows you might just hit a gold mine.
Here are some important factors to consider when setting up your business, they will help you plan much more effectively
This is the most critical of all the factors to consider because it is what your business will need to actually start off. You will have to consider how much is involved and how you are going to raise it.
Would you be considering a loan from the bank? Do you have the required collateral to go for it and at what cost would that be to your current income? Would you be comfortable with the interest rates? Would you borrowing from friend or family? How would you pay back? you wouldn’t want your relationships to turn sour as a result of inability to repay loans
2. FEASIBILITY STUDY
This is very important. Conducting feasibility study helps you understand the need for that product or service within an area or community. It also enables you to figure out who the big players or non players are so you can properly formulate a strategy for your own business that will lure some of their customers.
Starting a business without a proper feasibility study conducted is ill advised. It is analagous to going into a competition blind. Knowing more about the opposition is always an added advantage and this also holds true in business management
3. NATURE OF BUSINESS
Some business require government permits while some don’t. It would be wise to find out what legal requirements that are involved in the business area you want to pursue. That way you avoid incurring the wrath of government officials that may close your business down for violation of established laws.
4. DEFINE AND SEGMENT YOUR AUDIENCE
Appealing to everyone appeals to no one. You need to focus on your target audience and style everything from your website to your marketing campaigns around them. Make sure you are targeting the right people by sending out questionnaires, speaking to your customers through social media and holding focus groups. The only way to provide a product or service people really want is to get inside their heads. Involve your target customer in the development of your business and continue to test, test, test. Consulting your customers will also make them feel like they have a voice, will breed loyalty and, if you’re lucky, will increase the likelihood of them recommending you to others.
5. YOUR BUSINESS NAME
Think long and hard about your name: you’re going to be stuck with it as rebrands are expensive and painful. It’ll need to work with an available web domain and will also often be the first thing prospective customers see. Consider what your name needs to say about your business. The name you eventually choose must communicate aspects of your brand identity
6. YOUR UNIQUE SALES PROPOSITION (USP)
Customers will only stop buying from other businesses in favour of yours if you offer something better or different. Your USP (unique sales proposition) defines what is special about your offering; what customers can’t get elsewhere.
Carefully sculpt your USP: perhaps it’s your product if it is genuinely unique, or maybe it’s about customer experience; after-sales support; the way you price or offer payment; or that everything you do is organic. Maybe, like Jumia or Konga Nigeria that accepts payment on delivery, you appeal to consumers’ growing demand for ethical trading. Find your angle then make sure everything you do is true to it.
7. STAFFING REQUIREMENTS
Will you need employees from day one? If not, how about day 100? You need a plan for this so you’re organised, prepared and resourced for whenever — if ever — that day is. Employing someone is a big commitment to the individual but also to your bottom line. Don’t jump into it and be clear before making any appointment exactly what that person will do and what added revenue they will bring to the business: it’s usually an equation that results in a quick rethink! If you can, utilise freelancers and look what you can outsource.
So there are our tips for a start up business. Do you think there are other factors vital to a start up business ? Kindly share with us below
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