This article was culled from Kingnetkk’s blog which was recently started to provide entrepreneurship advice to blogs, startups and businesses from Nigeria. I’m featuring this article on this blog to provide useful advice to wannabe entrepreneurs in Nigeria.
Starting a Small Business
Starting a small business requires determination, motivation, and know-how. Here’s a list of available resources to provide you with the know-how to have a successful small business startup.
1. Identify Your Business Opportunity
Choosing what kind of business to start can be an immobilizing task when confronted with the multitude of opportunities. Here at About, we have identified the hottest business opportunities to give you a few ideas. It’s important to determine where your passions lie and to understand your entrepreneurial personality type. So you think you have found the one business opportunity that will bring you freedom, fame, and plenty of profits? Does it meet the 8 simple rules?
2. Build a Business Plan
For the majority of start-ups, a business plan allows you to gain a better understanding of your industry structure, competitive landscape, and the capital requirements of starting a small business. If business planning is beneficial, why do so few startups use business planning? Learn the critical steps to writing a business plan.
3. Name Your Business
What’s in a business name? Everything and nothing. The right business name will help distinguish you from a sea of bland competitors, provide your customers with a reason to hire you, and aid in the branding of your company. Apply these 10 commandments when choosing a name for your business.
Choose a Business Structure: Find the best ownership structure for your small business. The most basic of all business legal structures is the sole proprietorship. Other possible structures include the popular limited liability company, a partnership, or an S corporation.
4. Register Your Business
Starting a small business requires the usual paperwork and regulations. Corporate Affairs Commission (CAC) is responsible for this, for a small business start up you might not really need to incorporate the business as a Business name registration will do. Setting up your small business may require a business name registration to avoid embarrassment from local government authorities and to enable you get a a corporate account with a bank.
5. Find Start-up Money
Contrary to popular belief, most small business start-ups aren’t funded by grants, venture capitalists, or banks. Your seed money will come from your personal savings, friends, family, and any other creative means such as bartering.
6. Determine Your Business Location
A 2001 Inc 500 survey revealed over 56% of the fastest growing companies were started at home. Discover what you need to make your home office design more productive. If home business isn’t for you, learn how sharing office space can aid your startup. Don’t forget to review the pros and cons of office space leasing vs. buying.
7. Get Business Insurance
(This might not really be applicable here in Nigeria, ask me why) As a new small business owner, you have the responsibility to manage the risks associated with your business. Don’t put your new start-up at risk without getting the proper small business insurance to protect your company in the event of disaster or litigation.
8. Create an Accounting System
Unless you’re a number person, the accounting and bookkeeping aspect of running your business can’t be avoided. Setting up your accounting will help you understand the financial aspect of running a business.
