Starting a business in Nigeria is the dream of every Nigerian, especially those who have work from 8am to 5 pm under an employer. Before one should even conceive this idea, there are a lot of thing that need to be put in place. I suggest you read 4 Financial Risk Businesses Face in Nigeria
Starting up a business is a lot more than getting a rented shop and buying some commodities inside and start selling. The first step every one with the entrepreneur spirit need to pass through is asking the question of WHAT, WHY, WHERE, WHEN and HOW?
These are the questions that shapes your business and reduce the financial risk a CEO might pass through in his or her establishment and in today’s article we will closely examine these questions.
What Business to Start?
The first stage of owning a business is getting to know what business to start. This entails the idea behind the establishment. It is not every idea an entrepreneur have that can be transformed into a successful business, some ideas look good in the visual or imaginary world and will perform badly in the physical world.
The business you should go into should reflect your passion, skill and what you have a totally knowledge about and after that you will need to do a MARKET RESEARCH.
After getting your idea(s) set, you will need to perform a market research, this is similar to getting to know if your idea will perform well in the real (physical) world or not. Will your establishment get enough customers which will keep you in the business for a long run or will it fail after some few months, who are your competitors, how much will it cost to get started? – These are the kinds of questions you will ask.
These are they kind of WHAT questions that should be asked at first when establishing a business.
Why Do You Want To Start That Business?
Now that you have an idea of the business you wish to establish. The next question will be on WHY DO YOU WANT TO START THAT BUSINESS. This include REASONING and LOGIC.
Let me give you an example.
Mr. James might decide to start a barbering salon business in his neighborhood because he heard his friend. John is making huge profit from his own barbering salon business.
Many people will act like Mr. James, when they hear the word “profit” but in reality it may be that either john has lot of teenagers in his neighborhood that love getting new hair cut every week or he has won the heart of his competitors over by the discount or market strategy he is using.
WHY YOU SHOULD START A BUSINESS should contain more than just making money, you need to have a UNIQUE SELLING POINT that will bring customers flooding in.
Mr. James might have no skill or passion in barbering but might have a good clue in running a restaurant
So he needs to go back to the first stage of WHAT and restructure his idea and conduct a new market strategy to favor his new business.
Where you want to start a business.
Where should my business be located? The location of your business plays a very important role.
Take for example
If Mr. James should start his barbering salon business in his neighborhood, where there are more woman than men, then his business will struggle to survive because that location will not favor him since women will not barb their hair off but rather have it fixed and plaited.
In choosing a location one has to check for area with availability of resources such as power, security, good road etc. one of the misconception that most people have about choosing a location for their business is that they believe that the business must be close to your house.
If where you are living does not have the available resources that will favor your business then kindly find a suitable place.
“I have a friend, whose mother is into a restaurant business, and she made a made a market research and found out that her business will thrive in an area close to a car pack or a bus stop. The available bus stop was already occupied by another person so you went to another location and she is now a successful business woman earning nothing less than ₦ 7,000 as profit daily.”
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When Should You Start Your Business?
Should I start my business now or in the next few months? The period to start your business rely on one factor which is do you have the required resources to start? Resources such as capital, enough experience, equipment.
One common mistake we all make is “giving unnecessary excuses” Paulo Coelho once said “don’t waste your time with explanations: people only hear what they want to hear”
I always tell all those who come to me for advise on when to start their venture, that they should start when they have enough capital to financial there business and with a laid out plan. The journey becomes clear when you embark on it.
We have looked at 4 questions every entrepreneur should ask before venturing into a business but the topic of the article said 5, then, what could be the 5th question.
The 5th process is HOW
How Do You Start the Business?
Starting that your business will contain the 4 process of WHAT, WHY, WHERE and WHEN and combining these 4 process together will answer the question of HOW.
Let me give a better example to explain the above.
Nkechi is a graduate from the University of Port Harcourt who just finished her National Youth Service Corps (NYSC) and has decided to start her own business. After series of brain storming she decides to start a boutique (cloth) business, she did her market research she saw that her environment does not support such because the residence do not look like people who are ready to keep shopping for the latest fashion trend.
She had another idea, which is to start a departmental store business, where she will sells various items ranging from foods stuffs to ornamentals.
Nkechi now reasons “why should she start a departmental store business” after getting many reasons why she should start the business, she still needs to figure out where she will start. She discovers that’s the best place to start her business will be next to her house since there are a lot of people who will buy from her and a shop wide enough to meet her business needs.
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She decides to start her business in the next 6 months after saving enough money for the shop rent and commodity she will sell.
At the sixth month, she starts her business.
We can see how she has applied the 4 process in starting her own business, which in turn resulted in the 5th process. When she will be telling people about how she started, it will contain the title of “HOW I STARTED MY BUSINESS”.
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