Starting a business can be very exciting and at the same time overwhelming. There’s so much to tick off the to-do list before you can finally flip the open sign in front of your shop or online.
But the problem is; what is on that to-do list? Are they matters or tasks essential for starting a business at the time? Are they even issues that matter?
This 10-step guide to starting a business in 2024 is all you need to know what needs to get done, and why.
- Decide on a business idea/type.
Many times, people can feel drawn towards business, or finally decide to start a business on the side to supplement their 9-5, but can’t figure out what options are best.
If you want to start a business, think about what issues you want to solve with it, or what industries have always held your interest for business. This is the first step to starting a business. Your finances also determine what type of business you can start, so having a budget in mind will be helpful for choosing a business.
READ: SMALL BUSINESSES YOU CAN BEGIN WITH 100K IN NIGERIA IN 2023.
The business type will also determine whether it will be a solely online business, or require a physical location.
2. Do your research
This is the most important step in starting any business. Starting a business without any form of market research or feasibility study can result in a difficult and bumpy beginning. Your research must cover:
– What is this business all about? Are there any special skills to be learnt?
– Do I need to produce goods myself or become a retailer?
– Who are the major businesses in the sector? Why are they the biggest? What can I do to make my business better?
– How much financing is needed to begin?
– What is the average profit in this business monthly?
– What are the risks involved in this business?
– Are there any licenses needed to begin this business?
– What kind of beginner model is best?
– Who are my customers?
3. Prepare a business plan
80% of businesses fail within the first 5 years, and unfortunately, lack of a business plan was among the top 5 reasons for doing so.
Research has shown that businesses with business plans grow 30% faster than businesses with no plans. Asides from the fact that a business plan will help you get loans or business investors, it will help you get a clear sense of what you’re achieving with the business. Whether it’s being run solely for profit or to create a legacy or solve a pressing issue, you’ll be able to articulate where you are now, where you need to be and what exactly will be done to get you there.
A business plan is a roadmap you need. It will contain your financial breakdown, an executive summary, market analysis, market strategy, business operations, projections and lots more.
If you want to build a structure for your business and invest in its growth, a business plan is non-negotiable.
4. Choose a business structure
Will this business be run solely by you? Or will you need to get a partner to run it? Choosing a structure is important because it will affect your kind of business registration, profit sharing in the business, and organizational structure.
Most businesses typically begin as sole proprietorships but that means your business and you are not recognized by law as different entities. As your business grows, consider restructuring to a limited liability company. You still get to call the shots on the business, but your business will be clearly recognized as an entity of its own.
5. Choose a name & register your business
After making the major decisions on what business to start, and how best to go about it, choosing a business name and registering it with the Corporate Affairs Commission in Nigeria is the next step. When choosing a business name:
– choose one that is easy to pronounce
– One that is unique
Registering your business and its name is crucial so that when you build a brand with your business, you have full rights to the name and other businesses cannot steal or operate under that name. During registration, if the name has already been chosen, you’ll be informed and asked to choose another. So, it is safe to have multiple options you’d like to use.
6. Identify the target audience
Identifying your target audience is key. The target audience is simply the type of people/persons who are likely to buy from your business. In identifying your target audience, you want to break down their demographics such as where they live, their income, their age range, occupation and lots more. This is very important as it will guide your marketing & pricing strategy.
READ: PRICING STRATEGIES FOR SMALL BUSINESSES
For example, if your target audience is students, you need to sell products that are cost-friendly and easily accessible to them.
7. Make/buy products to be sold
What’s a business without any products or services to sell? Now that business registrations and market prep has been sorted, it’s time to go into production. If you’re making your own products, this is when production begins. What mostly determines the number of products to be procured is financing.
If you have enough money to produce in bulk, bulk productions are always advised because they save more money and can be sent out for immediate delivery and purchase. Purchase/make the goods you’ll be selling.
8. Build your brand
Here, you get to decide your brand tone, colours, logos, and brand packaging. Building a strong brand is important because that affects people’s perception of your business.
Branding is all around us. From MTN’s chirpy lively TV adverts and flyers showing us the need for airtime to connect to family, to Sujimoto’s adverts that just scream money and luxury, you get to determine how people feel about your business.
9. Create an online presence
Once you’ve decided on your branding, create a digital footprint. Set up your social media pages, and website if any and get connected to the world of e-commerce.
Reports indicate that the online shopping industry will hit $75 billion by 2025. Now is the time to begin investing in reaching an online market. You can take free courses on social media marketing to help you market and sell your business online.
10. Sell & grow your business
The last thing in the 10-step guide to starting a business in 2024 is to sell and grow your business. Now, you can finally flip the open sign on your shop and put up the open-for-order posts on your social media. Things that should be key for you are maintaining good customer service, growing your business awareness, making customers brand advocates and just making every business day better than the previous.