Before you take the leap into that business – Abiodun MakaveLi

Starting a business is an exciting journey that can lead to financial independence, personal fulfillment, and the opportunity to realize innovative ideas. However, it is a job that requires careful planning and consideration. Before diving into entrepreneurship, there are some important things to consider.

1. Market Research:

Market research is the collection of data that allows businesses to learn more about their target groups and consumers so that they can market themselves more effectively and ultimately succeed in the market. Market research is an essential part of any business strategy, whether you’re a B2B or B2C company, large or small, new or old. It empowers businesses to make decisions based on data, giving them the answers they need to make decisions that move them forward rather than backwards.

• Study your target market to understand its needs, preferences, and trends.
• Analyze your competitors to identify gaps and opportunities.
• Ensure there’s demand for your product or service.

2. Business Plan:

A business plan is a documented strategy for a business that highlights its goals and plans to achieve them. It describes the company’s marketing plan, financial forecast, market research, business goals, and mission statement. Key personnel responsible for achieving goals can also be included in the business plan along with timelines.

• Create a comprehensive business plan that outlines your goals, strategy, and financial projections.
• A well-structured plan not only provides direction, but can also attract potential investors and lenders.

3. Finances:

Creating a financial plan is important because it allows you to make the most of your assets and gives you the confidence to overcome obstacles along the way. You can create a financial plan yourself or get help from a financial planner. Online services like robo advisors also make financial planning more affordable and accessible than ever.

• Determine your startup costs and create a budget.
• Secure adequate funding through savings, loans, investors, or grants.
• Plan for ongoing expenses until your business becomes profitable.

4. Legal Structure:

Legal structure is the organizational framework that governs the operations of a business entity. Also known as a business structure, business form or business ownership structure, the appropriate legal structure depends on the size and type of business as well as your business goals.

• Choose a suitable legal structure for your business, such as sole proprietorship, LLC, or corporation.
• Understand the legal requirements, licenses, and permits necessary in your industry and location.

5. Business Name and Branding:

Choosing a brand name for your business is one of the most important tasks you will undertake as an entrepreneur. This is also not an easy task, as your business name must describe and convey the essence of your brand, product, or service. Think of it as the title of your brand’s story.

• Select a memorable and meaningful business name.
• Develop a strong brand identity, including a logo and marketing materials.

6. Location of the business:

Choosing a location is one of the most important aspects of starting a brick-and-mortar business and ensuring long-term success. Location is especially important for retail stores and restaurants, where foot traffic, accessibility, ambiance, and the right audience are important.

• Decide whether you need a physical location or can operate online.
• Consider factors like accessibility, foot traffic, and proximity to suppliers or customers.

7. Team and Skills:

Teamwork refers to the ability to work well with other people, both individually and in groups.

You may have played soccer in high school or belonged to a club, so you are probably familiar with forming a team. There are good reasons to introduce these skills early. You will need these for almost every professional or personal interaction in the future.

• Assess the skills you bring to the business and identify any gaps.
• Determine whether you need to hire employees or collaborate with partners.

8. Legalities and Regulations:

Legal and regulatory factors are the laws, rules, and regulations that govern the actions of individuals, businesses, organizations, and governments. Laws and regulations are enacted by legislatures, courts, and administrative authorities. Some laws and regulations apply equally to all citizens. Others serve to protect specific groups of people, such as consumers, investors, employees, and property owners.

• Familiarize yourself with tax obligations, employment laws, and industry-specific regulations.
• Consult legal and financial professionals to ensure compliance.

9. Marketing Strategy:

A clear marketing strategy should revolve around a company’s value proposition and tell consumers what the company stands for, how it works, and why it’s worth doing business with. .

• Develop a marketing plan that outlines how you’ll reach and engage your target audience.
• Consider online and offline marketing channels, including social media, SEO, and traditional advertising.

10. Risk Assessment:

Risk assessment is the process of identifying threats that can negatively impact an organization’s business capabilities. These assessments help identify these unique business risks and provide measures, processes, and controls to reduce the impact these risks have on business operations.

1. Identify potential risks and create a contingency plan.
2. Understand the financial and personal risks associated with your business venture.

11. Business Goals and Milestones:

Without milestones, your business plan or strategy won’t become a real business. Milestones help you execute your business strategies and tactics.

Just as roadside milestones show you how far you’ve come, business milestones track your progress as you grow and execute on your plans. Use them to manage responsibilities, track results, and turn your ideas into a business reality.

• Set clear and achievable short-term and long-term goals.
• Establish milestones to track your progress and adjust strategies as needed

12. Work-Life Balance:

Work-life balance is how a company’s employees prioritize their personal and professional activities. Work-life balance is a modern issue, as the increasing amount of technology used to complete work activities can disrupt our personal lives.

Each employee has a different definition of their ideal work-life balance, depending on their family obligations, professional priorities, health status, and free time.

• Recognize that entrepreneurship can be demanding; plan for a healthy work-life balance.
• Prioritize self-care and maintain a support system.Recognize that entrepreneurship can be demanding; plan for a healthy work-life balance.

12. Exit Strategy:

An exit strategy is a contingency plan executed by an investor, venture capitalist, or business owner to liquidate a position in a financial asset or dispose of tangible business assets once predetermined criteria have been met or exceeded.

• Consider your long-term vision for the business, whether it’s eventual sale, passing it to a family member, or retirement.
• Prepare for the unexpected, such as unforeseen market changes or personal circumstances.

Conclusion

Starting a business is both rewarding and challenging. Taking these considerations into account can help you navigate the initial hurdles and set a strong foundation for your entrepreneurial journey. Remember, thorough preparation is the key to building a successful and sustainable business.