It requires serious dedication, determination and
planning to start any business. There are essential steps to establish an
enterprise. Steps include writing a business plan and identifying the business
opportunity.
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Others are securing funding, incorporation, business
license and permit. The investor needs to find a good location, buy equipment,
and get insurance cover.
1. Identify
the Business
The first step is to identify a business opportunity. The
opportunity should be in line with your qualification or expertise. The
investor should have a passion and deep knowledge of the business. Make sure
you carry out a feasibility study, conduct a survey and write a business plan.
• Identify a
business opportunity
• Qualification
or expertise
• Passion
• Knowledge
of the business
• Carry out
a feasibility study
• Conduct a
survey
• Write a
business plan
2. Create
an Account
Proper accounting and budgeting is essential for proper
money management. The accounting system will determine the fixed and working
capital, profit, loss. The investor can use a freelance accountant to balance
the books and tax.
3. Business
Insurance
Every business comes with some level of risk. Managing
the risk would offer better advantage and mitigate unforeseen problems. Apply
for liability insurance or small business insurance. This will offer some level
of protection from litigation.
4. Business
Location
The business location can make or break the enterprise.
Determine your business location based on customer demography or availability
of raw materials. Things to consider are zoning, good road network,
commerciality and closeness to competitors.
• Customer
demography
• Availability
of raw materials
• Zoning
• Good road
network
• Commerciality
• Space
• Closeness
to competition
5. Determine
the Work Space
The work space depends on the type of business, machinery
and equipment. A factory requires ample space for machinery, packaging and
loading areas. Office related business require office space for table, chairs,
computer, printer.
6. Apply
for a Business License
The entrepreneur needs to apply for a business license or
permit. The document regulates the industry and conforms to state and federal
laws.
The business structure would determine the type of
license required. Other requirements are
tax identification number, zoning permit and sales tax.
• Apply for
a business license, permit
• Tax
identification number
• Zoning
permit
• Sales tax
7. Incorporate
Choose a business structure and incorporate. There are
different forms of incorporation based on business requirements and ownership
structure. We have the sole proprietor, partnership, Limited Liability Company.
a sole proprietorship is run by one man while partnership can accommodate two
or more owners. The limited liability company is only limited to the company
funds in case of litigation.
8. Name
the Business
It is important to
choose the right name for the business. The first step is to find out if the
name is available. Then register the name with the corporate affairs
commission. Make sure the name reflects the type of business. The importance of
business name is the brand awareness.
9.
Funding
The investor needs to find money to startup the business.
Startup funds are secured through personal savings or borrowing. The investor
can borrow from friends and family or a financial institution. Use a business
plan to apply for bank loans. The investor should have collateral, guarantors
and part of the startup funds. Other ways to secure funds are through crowd
funding, angel investors, partnership and sale of shares.
10. Write
a Business Plan
A business plan is an essential tool for startups. The
plan would highlight the business structure and study the industry. The plan
should cover startup funding, labor, fixed and working capital. Other
parameters are location, serve or product, pricing.
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