4 stages of creating a new business

Business

IDENTIFICATION AND EVALUATION OF OPPORTUNITY

This does not come easy. For many people this is the most difficult part of business creation. This is the birth of the business idea. A business idea can be created when an individual considers a society need and think about a way he can be the solution to that need (Cowbell in small sachet), or when he employs a personal skill towards satisfying a need or want and therefore is paid for it (Electricians, Plumbers etc), or when an individual uses a hobby to make money (musicians, comedians etc).

An evaluation of the business opportunity is equally as important.  It is an assessment of whether the product or service intended would give a worthy return compared to the resources required.

DEVELOPING A BUSINESS PLAN

After an identification of a business opportunity and the evaluation of its profitability, the next thing is to draw a business plan. A business plan is the description of the future direction of the business. A business plan is building your business on paper. What are the needed or necessary resources for this business? Which of these resources do I have and which do I have to obtain? Do I have the necessary skills to run this business? If no, who can I employ to handle certain aspect of this business? How do I obtain the needed resources? How do I manage this business?

These are some of the questions that need to be answered in your business plan.

ACQUIRING THE NEEDED RESOURCES

Next is to obtain your resources in a timely version and at the most affordable cost possible. To obtain your resources at an affordable cost, you must search for and know alternative suppliers of these resources. You should patronize the supplier who would provide the best quality product at the most affordable price possible. Also, it should be someone whom you can develop a friendship with, so in the future you can enjoy credit facilities.

MANAGING YOUR ENTERPRISE

This is yet another big issue for business people, particularly young inexperienced individuals. It is one thing to start a business it is something totally different to manage and grow it. You must learn and put into practice a management style that would ensure the growth of your business. You can employ a control system, a peer-review mechanism, so you can quickly identify and correct problems or lapses in your business. To properly manage your business you need to be a continuous learner.

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