Starting a Small Business

Most people venturing into business do so not because they have an entrepreneurial zeal, but because they have seen someone else running that type of business and feel that is the in-thing and thus, jump on the bandwagon. Most often, the business from the outside seems to be making money because the owner’s lifestyle appears to have changed a bit; for instance, a new car, new house, maybe even a family vacation abroad.
However, there’s more to starting a business than looking at someone in business and deciding to follow suit. It’s the Nigerian entrepreneurial dream to take a business idea from the concept, research and planning stages to the day when you open your doors to the public. Many who succeed in starting their own businesses have planned for every phase of their success. According to Thomas Edison, a great American inventor, who once said: “Genius is 1 % inspiration and 99 % perspiration.” The same philosophy applies to success in business.

To enhance one’s chances for success, a little bit of hard work is necessary to eliminate some common mistakes new business owners make.

According to experts, most people don’t spend enough time researching their potential businesses and the marketplace before they venture into the business. Another challenge is that as soon as an idea comes to their head, they just meet a consultant to do a business plan for them. Most times these consultants sit at their desks without actually going into the actual marketplace to get a feel of the market.
Not keeping in touch with market realities is one of the more common mistakes entrepreneurs make. This feel of the market is especially important in a society like Nigeria where access to data is a major challenge.

A business plan is very important, but before you start your plan, carefully research and answer some basic questions that will help set the tone for your business success.
Questions such as: What niche or void will my business fill? What services or products will I sell? Is my idea practical, and will it fill a need?
After these fundamental questions have been dealt with, one can now begin to determine other factors like Who the competition is? What advantages your product or service has over others in the market? Issues bordering on better service quality and the need to generate a continuous flow of demand for your product or service need to be dealt with properly.

Once you’ve determined that your business idea is feasible, you need to now focus on what skills and experience you need to bring to bear on the business. Many aspiring entrepreneurs fail to put up sound structures for their business and are surprised when things start to fall apart. A good legal structure is a must for any business that wishes to succeed. Proper record keeping and insurance coverage are other factors to consider. Another aspect that needs to be given serious a thought before you start out has to do with how you will compensate yourself? (This is very necessary; so, you don’t keep dipping your hand into the business’s purse) you need to determine what your resources are. What financing you will need, where your business will be located, and what name your business will bear. All these will help you create a positive groundswell of activity that will be crucial in the early going as you work to establish your product or service.

If you are starting a home-based business you should take time to factor in the effects running your business from home will have on your family, as they will most likely bear the major burden of the business.
You will need to answer some salient questions like: Does your home have the space (preferably separate) for a business? Can I successfully run the business from my home without upsetting the balance of my family? Can I deal with the isolation of working from home? Your answers to these questions will help you to create a focused, well-researched business plan that should serve as a blueprint that, hopefully, will guide you to achieving your dream of being an entrepreneur.
Good Luck