After reading this piece, you should be able to move from being an employee, worker or job seeker to become successfully self-employed and even a job creator.
This piece details the essential basic steps you need to take to move yourself from being an employee, a worker, or a chronic job seeker to become successfully self-employed, and even a job creator.
Before you take the plunge to start a business, you must do a personal check on yourself to help you better know yourself and understand your real intentions.
Your Personal Checklist
1) Self Analysis: Why do you want to go into business? This question may seem redundant but you need to answer it honestly. This is because your answer reveals your inner self-motivation for going into business.
A strong inner or internal motivator gives you the inner strength to keep going when the going gets tough. Without a strong self-motivation for going into business, you may easily give-up when things get rough. A strong inner motivator could be your desire to:
♦ Be your own boss and improve your life
♦ Be free from the 5 – 9 workday and attain personal freedom
♦ Build greater financial capacity to support family and friends
♦ Attain financial freedom and enjoy the good things of life
♦ Acquire the capacity to uplift humanity, especially the poor
An honest self-analysis will help you truly understand and come to terms with your major reason for deciding to start a business or become self-employed.
2) You and your Business Idea: Is your envisioned business compatible with your personality, skills and experience? This is important because research shows that highly successful businesspersons do what they love, and love what they do. When your business has to do with something that excites you; or something you are passionate about, you have a greater chance to succeed.
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3) Is your Idea Viable?: Your business idea must be feasible and viable otherwise it will not fly. Chose a niche that guarantees viability; and ensure you have very clear answers to the following:
♦ What business do you want to start?
♦ What products or services do you plan to sell?
♦ Who will buy? Why will they buy?
♦ Why will they buy from you, and not your competitor?
4) Your Market Entry Strategy: As a new comer, how do you plan to break into the market? Your market entry strategy is critical to your business success especially at the initial stages. Below are your options:
♦ Does your product or service aim to satisfy an unfulfilled need or market segment? In other words, are people hungry and searching for where to buy the products and services you plan to sell?
♦ Does your product or service aim to satisfy an existing market with unfulfilled demand? In other words, you see a huge gap between demand and supply which you want to fulfil.
♦ Does your product or service offer better brand popularity, better quality, better location or better pricing, with which to compete with similar products already in the market?
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5) Basic Market Analysis: Before you invest your energy, time and money into any business, take a little time to do a simple market study of your niche. A good Market Analysis will reveal how well you know your market and ensure a greater chance of success when you start your business. A simple market study will answer such questions as:
♦ Who will be your customers?
♦ What are their needs and wants?
♦ Will your products/services meet their needs?
♦ Where are these customers?
♦ How will your products/services reach them?
♦ How will you make them aware of your products/services?
♦ How will your location affect your success and profits?
♦ Who are your competitors?
♦ How can you gain competitive advantage?
6) Choose your Business Name, Location and Legal Status:
◊ Business Name: Before you settle for a business name, consider the following - your business name should:
♦ Be simple, short, catchy and easy to remember.
♦ Be an indicator or pointer to what your business is all about.
♦ Arouse positive emotions in your customers and clients.
♦ Be available for online presence and branding, if needed.
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◊ Location: Location can impact the success and profitability of a business. Before you choose your business location consider which of the following are more important to your business success and profitability:
♦ Proximity to the source of your products or raw materials
♦ Proximity to the market or your clients and customers
♦ Availability of labour or workers for the business
♦ Does the business need a special locational requirements?
◊ Legal Status: Your business legal status refers to the type or classification of your business in the eye of the law. The more common business legal statuses are sole proprietorship, partnership, and limited liability. They all have their advantages and disadvantages. You need to choose, register or incorporate your business under the most appropriate legal status for what you want to achieve. Find out more from the Corporate Affairs Commission website.
7) Your Financials: Your financials are very essential to your business start-up and continuity success. You must satisfactorily answer these questions:
♦ How much do you need to start your business (start-up costs)?
♦ How much do you need to stay in business (running costs)?
♦ Where will the money come from?
8) Record Keeping: It is good practice to keep track of all your expenditure during this start-up period. And when you start, keep record of all income and expenditure. Accurate record keeping is essential. With this in place, you can easily produce a Statement of Account for your business.
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9) SWOT Analysis: It is quite helpful to review your Strengths (why you think you will succeed); Weaknesses (what could make you fail?); Opportunities (could you capture other markets?); and Targets (what are your growth plans?).
These are the key and basic preparatory steps you must take to successfully start and run your business on a solid foundation. See you at the top!
Other related Resources for you to check-out:
Start a Business That Makes You Money and Keeps You Happy
5 Must-Know Start-Up Tips That Boost Small Business Success
Your Smart Guide to Starting a Business - From PROBLEM to PROFIT
4 Key Benefits of a Business Plan for Small and Micro Business Success and Survival
Stay Smart, Wealthy and Wise!
© Jay Onwukwe
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