Starting a new business can be exciting and beneficial to you, really the high level of freedom and the ability to take your own decisions without any external influence.
Before a business can run successfully both online and offline, certain considerations must be put in place for you not to end up in the long run. The period of the startup is an exciting one but unfortunately, it is a period when most businesses fail.
This time is used to figure out a business model that allows for sustainable cash flow, consistent growth and the ability to hire other people to run the business. At the startup stage, a business that cannot succeed without the entrepreneur working 100 hours per week as the chief executive and bottle washer will not grow, therefore the entrepreneur must be careful and be on the lookout at the foundation stage of the business.
1. Conduct a Feasibility Study: Feasibility: feasibility studies involves researching the conceptualized business idea to determine it’s viability and profitability. it entails carrying out market research and competitive analysis.
Market Research will tell the entrepreneur if there is an opportunity to turn your idea into a successful business. it helps you find customers for your business, it is a way to gather information about potential customers and businesses already operating in your area.
Competitive analysis helps you make your business unique. competitive analysis helps you to learn from business competing for your potential customers. This is the key to defining a competitive edge that creates sustainable revenue.
2. Write a Business Plan: Business plan is an execution plan that shows a step by step procedures on how your business can be managed. it is the road map of your business structure. your business plan will convince people that are working with you, those investing in your company and those that will loan you money.
3. Fund your Business: Your business plan will help you figure out how much money you will need to start your business. If you don’t have that amount of money, you will need to either raise or borrow the initial capital.
4. Pick your Business Location: Research the best place to locate your business, your business location is one of the most important decisions you have to make. Where you choose to locate your business depends on the location and your target market, business partners and your personal preference.
5. Choose your Business Structure: Choosing the best legal structure for your business requires knowledge of your line of work, and an understanding of local, state and federal laws. Tax laws are constantly changing and the need for capital is always present, so it’s crucial for business owners to evaluate which business structure offers them the advantages that will save them money and help them grow.T he most common types of business entities include sole proprietorships, partnerships, limited liability companies, corporations, and cooperatives.
6. Registration: After successfully choosing your business name, the next step is registration. The purpose of this is to make it legal to protect your bran