Congrats, you've made a healthy decision, one that would change your whole life and leave you feeling like its Magic for good. Entrepreneurship is the future of a sustainable economy and a more worthy adventure than being and remaining an employee and serving people build their empires all your life while you keep receiving peanuts.
An entrepreneur is a person who desires success and picks up substantial risks in his quest for success. Business is a risky activity but a far more profitable venture than profession.
However, before deciding on commencing any business or business related venture, there are a couple things that must be set in place to lay a solid foundation for your success. These things am about presenting to you are factors for general consideration to be checked as they apply to every business out there and any entrepreneurial activity.
Also read :How to raise capital for your business
Here are 5 things to do before starting your own business...
1... STUDY YOUR PROSPECTIVE BUSINESS
As an intending entrepreneur, so many business ideas or opportunities might come your way, it takes discernment and good decision to settle for and prioritize one. Perhaps you like to deal on Automobiles or you would love to deal on clothes, well that's nice a few related factors after given due consideration would reveal to you which might be best two settle for in the two choices you have before you. The very first thing to do before starting a business is to have a careful and conservative study of the business in Question that is after deciding on what to do. Take sometime and understand the principles of operation of the said business.
2... GET ENOUGH EXPERIENCE
So next step would see you getting practical experience of your study. Perhaps you have a friend who is already into motor spare parts and cycle spare parts and this is what you'd desire to do. You might be taking a few shots from him by discussing with him of your plans and staying out a few times a week at his place to actually see how this business operates. How to deal with customers, how to attract customers, what strategies he's been using to combat business vices and how he manages his time and sales reps, also the accounting aspect of every business is vital to learn because every business does not have the very same method of preventing and checking internal theft.
3... COMPARE PROFIT PER CAPITA
How much profit should be expected for a start if you invest a certain amount of capital should you commence trading today in your prospective business? Love is blind but at the same time, passion can also be blind. Did you know that there are people into certain businesses today and they are regretting the choice they made because they joined the business out of passion without knowing the relationship between capital and profit? For instance, to me dealing on or trading on provisions is not a good business because inasmuch as it moves market or it has regular buyers, the actual fact is that it isn't and has never been lucrative. There is only a small marginal difference between cost price and selling price. So try to understand and compare this relationship for every business before investing into.
4... CHECK COMPETITION
So you might have to check for existing competition for the business risk you're about to undertake. How many people around you are into it already or in your prospective market or location, how many people would you be dragging customers with? Also check how many people actually have need for the particular product or products you intend to trade on? Is demand high? If yes, is supply meeting up with demand? If no, then it's a good idea but if yes, it carries on greater risk which means you might have to prospect another market.
5... UNDERSTAND THE RISKS
What are the bad factors affecting the business? Could electricity be a problem? This is a very crucial aspect! There are general risks affecting every business, there are also peculiar risks affecting individual businesses. For instance, a grocery store who also sells frozen chicken products has more need for electricity than a boutique though both need electricity to better their businesses but one has crucial need for it over another and if the light goes out for days with no auxiliary power source, these frozen products could go bad and money lost. So learn about associated risks and turn the red blue!
Best regards
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