Starting a business isn’t for the faint hearted but for brave, determined and focus individuals that are willing to take calculated risk and get out of own comfort zone. It’s demanding and requires complete focus and determination. If done well, it can also be a rewarding and fulfilling experience professionally and personally.
Below are Tips Creating A Successful Small Business:
1. Have Plan to Execute Your Idea
It’s not enough to just have a great idea for your business, you need to develop actionable plans to bring those ideas to point of fulfilment. Great ideas are never known if they are not brought to life through real and deliberate actions and steps. To succeed, you must first identify a problem or need that your proposed business is meant to address. Every successful business that has ended up becoming a household name are those that identified a need or problem in their environment and developed products/services to meet those needs or addressing that problems. Secondly, develop a business concept, and then writing an implementable/actionable/realistic business plan to guide your development of the business concept. The business plan is a very essential tool for bringing your business idea to reality. It must have a need or problem that has been identified for which products or services being proposed by your business is meant to address. It must be actionable, implementable and realistic with the potential of convincing investors to put down their monies to funding the business. The business plan must identify revenue generation channels, potential for growth and expansion and benefits to stakeholders/investors.
2. Establish a Budget
A budget is projection of both cost and revenue for the business. It is essential for efficiently managing your financial resources. For effective budgeting, it is necessary to first do some research to find out about the standard cos factors within your industry, then develop a budget to run your business based on this information. Projection of revenue to be realized from the business must also be made based on market realities as a basis to derive operational and marketing effort towards its realization. Once these projections are in place and are realistically done, the chances of success in execution of your business plans and strategies is higher and you are able to efficiently manage your financial resources effectively.
3. Get The Right Investors
Failing to bring in the right investor for your business is one of the most common mistakes startups or small business owners make in business. Not all prospective investor that comes around is right for your business, and you most be bold enough to walk out of the door if conditions and terms aren’t right for you. This is because, you stand the risk of loss, failure or event a complete takeover of your business if you make the wrong decision or show any form of inexperience, which investors usually take advantage of. It is therefore extremely important to find an investor that shares your vision and passion for the business, understands your idea and strategy as well as their execution. Most importantly, someone that you can get along with.
4. Get a Great Support System
Starting and growing a small business is usually challenging physically and emotionally especially with ones immediate support system/structure such as friends and family. As such it is necessary to get their buy-in to guarantee success. As a result, you’ll need all the support from family and friends. You should first ensure that your family is on board with the necessary sacrifices you are going to be making in terms of time and resources, and your loved ones should be prepared for challenging financial and emotional demands that will come with your decision to grow your business. This will to large extent ensure that you cross the initial hurdle and the very critical/demand stage of your business development and running process. It also helps to assure them that it’s only for a while and as such, reduce the possible pressure that will potentially be coming from their end. However, you also have a personal responsibility to ensure that you balance every thing in manner that both your business and private life isn’t significantly impacted by your activities.
5.Sort Out all Legal Matters
Ensure the you tidy up all loose ends in terms of Legal Aspect of your business. This includes but not limited to business registration and incorporation, supplier contract and service level agreements were applicable, employee engagement contract, investor relations and terms, etc. You cannot afford not to tidy up your paper works and legal documentations for your business as this is the foundation upon which any business venture is built and could stand on. Not doing so could be very costly mistake that you will surely regret. Secure the necessary permits and licenses were necessary, comply with local laws and regulations guiding your industry, be a law abiding and socially responsible business by determining your tax obligations/liabilities and paying same as at when due. In addition, get a qualified lawyer and subject matter experts to guide you legally every step of the way (especially when negotiating with investors).
6. Take Advantage of Subsidies and Free Resources
The caption says it all; if you can get it for free, then go for it. You are not doing yourself any good by paying for something that you should ordinarily be getting free or at discounted price. So don’t fail or shy away from asking for a discount subsidy and free resource where and if available. Negotiate those thing you are able to negotiate as its allowed in business. Applying these principles really can help the success of your business venture in a monumental way and take lots of financial pressure off you. Research on governance regulations and laws concerning your business and take advantage of subsidies, tax holidays, interest free loans and other government supports that are available to grow your business.
