Young Naija Entrepreneurs

Celebrating, encouraging and promoting young Nigerian entrepreneurs


17 Things to Keep in Mind Before You Start Your Own Business

The excitement and commotion of starting a business can be managed if you take the time to plan thoroughly. There are many foundational documents that you can create while conducting market research, such as your business plan and budget. As you contemplate becoming a business owner and writing a business plan, we’ve outlined 20 factors to keep in mind:

  1. What need will your business solve?

Start by considering the problem your company solves. For example, your product may have the ability to speed up a process or reduce the amount of time it takes to complete it, prevent a loss, or provide a service to your community. Your location may also play a role, if you can provide a service like a nice cuisine, laundry, or repair to an area that hasn’t previously had access to those kinds of things before.

  1. Uniqueness

Take a look at what your firm can do that no one else can. Your business role models might inspire you to think about how you differ from them. You can better express the worth of your brand if you know what you, and only you, bring to the table.

  1. What is your business identity?

Be sure to think about why you’re the right man to launch this business you have in your mind. Your enthusiasm may be the reason for this. There’s a good chance you know someone who’d benefit from the service you’re planning to provide, or you may even live in the area your business will target. You may possess formal training in the manufacturing procedures for your business, or perhaps you may have extensive experience performing such tasks for other businesses.

  1. Business structure

Think about whether you’ll be partnering with others in the company or you’d be starting on your own. You must have researched the kind of business model that would be best for your situation before you begin working with others. If it’s a partnership, you and one or more individuals can share the risks and decision-making of the venture. If you want the business to be structured as a corporation or limited partnership, consider if you want other investors to have limited or no control over the operations of the business.

  1. Market

Take into account the wide range of customers your company can serve. You can look at how far you want your products to go and what kind of individuals would be interested in your product or service.

  1. Costs of starting the business

Take into account how much money your startup requires for every aspect. Begin with the general operating equipment and technology you’ll require, and then proceed to the raw materials you’ll require and how often they’ll need to be replaced. Calculate the costs of rent and upkeep if you intend to run a physical location. Any vehicle or delivery costs should be taken into account if you don’t. Also take into account the cost of paying other workers and how much money you’ll need to cover your own personal expenses. Make sure to include any services, such as advertising, design, marketing or web hosting, that you might need.

  1. Funding

Think about where you’re going to get the capital to start your business. You may use your own savings, a bank loan, credit from family or friends, or financial support from the government or other institutions to fund your business.

  1. Legal and financial obligations

Think about the long-term consequences of receiving your funds after you’ve made your decision. As a small business owner, you might want to pay back a business loan and interest over a few years, and that is an additional expense to budget for until you complete the repayment. Getting a loan from a friend or family member may have a lower interest rate. It is better to avoid misunderstandings by making a formal agreement on how you intend to repay any money you borrow. And before accepting a grant, do some research to see if you can meet the terms of the agreement.

  1. Location

Consider the locations where you can start a business. If you plan to ship your goods or provide a traveling service, you may be able to launch your business in your own home. It’s important to think about how much rent you can afford when looking for a storefront. In addition, you should consider about the storage of materials, the placement of any particularly large equipment, and the ease with which supplies or shipments can be sent.

  1. Employees

Thinking about how much work each partner plans to do and any tasks that you do not want to do can be helpful if you are working with a business partner(s). You may be able to outsource some of your work to a freelancer or bring in a temporary employee during a busy period. Before you start hiring, it’s a good idea to think about how you’ll keep track of your employees’ work and how you’ll comply with local employment laws.

  1. Purchasing and obtaining supplies

Think about the tools and resources you’ll require for daily operations. For each step of the production and procurement process, think about everything you need. For instance, stores might need decorations, displays, and a payment system, whereas restaurants will need cooking equipment and a suitable storage space for the food they prepare for their customers. Any raw materials or packaging you intend to use should be included on the shopping list. Your business may also require specialized telephones, printers, computers, and fax machines. Whenever you plan to go on a business trip, think about your company cars and the equipment you might need.

Also, consider what factors are important to you when making purchases, such as local or organic sourcing, vegan processing, or no animal testing. If you can, try out or inspect materials before making a purchase. Trade shows and free samples may be offered by some suppliers before a purchase is made.

  1. Regulations

Finding out what the company regulations are in your area can save you from getting in trouble or paying fines. Location decisions are affected by zoning regulations. It’s possible that industry-specific rules exist, such as those governing standard of food preparation or laws governing your obligations and responsibilities to your customers. You may be required to obtain a permit before providing certain services or selling alcoholic beverages. You can more accurately set prices if you are aware of all applicable taxes, including federal, state, and local.

  1. Brand

Your brand’s image should be based on how you want your customers to perceive it. You may want to take a look at similar local businesses to see how they treat their customers and how they set themselves apart from the competition. With this information, you can create an amazing brand that distinguishes you from the competition. Your packaging, location, and communication with customers can all benefit from a consistent brand.

  1. Marketing

Think about how you can get the word out about your company. Your target audience can help you decide where to put your ad campaign. Hire a marketing expert to draft your marketing strategy if you’re not sure where to begin or want an all-encompassing strategy.

  1. Competition

Investigate the companies that provide comparable goods and services as you do. You can find out what kind of advertising works best for them and where they are located. Your location or target market may have to be different if they supply a similar demographic. A local business association or entrepreneurial group can also help you meet others working on similar projects. A partnership, a local festival or street fair can also arise from a thorough investigation of your competition.

  1. Record keeping

Make a plan to track your sales, expenditures, income and operating costs before you set up your business. Keeping track of your finances and filing your taxes is easier if you are well-organized. It’s possible to outsource some of this work to an accountant, or you could look into available software that can automate some of it.

  1. Limits

Consider setting some restrictions for yourself in order to protect your health and well-being. Identify ways in which you can separate your professional and personal lives. Keeping your workload under control may be as simple as establishing a set of work hours or a maximum volume of sales you can handle on your own. Make a backup plan for when you’re pushed to your limits, such as who you can call on for assistance and what lower-priority tasks you can put off until later.


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