Becoming an entrepreneur requires a lot of commitment. A lot of people like the idea of starting their businesses but the process of starting a business does not happen overnight. It takes a great amount of time, planning, and research. It also requires a certain level of knowledge and decision-making abilities.
To start a business, there are certain things that an individual must do:
· Create a proper business idea
Before starting a business, you have to answer the question 'Why'. What is the purpose of the business? What need does your business cater to? Who is your target market? You have to conduct great market research to answer most of these questions. Market research helps you understand customers' behavior (persona) and how this behavior affects their economic choices. This gives you a better understanding of your opportunities and your limitations.
· Create a Brand Identity
After creating a business idea, you have to create an identity for your brand. Start by creating a business name. Ensure that your business name is not hard to spell or confusing. If possible, ensure that it doesn't sound like another business name to avoid confusion. When you pick a name, ensure that you consult the Internet to make sure that said name is not taken already. You could add a catchphrase or a slogan after you decide on the name. If your business is targeted toward online customers then you should also create a website for easier access.
· Write a business plan
A business plan is a written document that contains the goals of your business. It usually also entails how you plan to achieve your business goals and how much time you require to achieve the goals. It helps you prepare for your business and helps to determine the growth rate. A business plan helps you determine if your business idea is viable and helps avoid mistakes.
· Source for Funds
Starting a Business usually requires a cost and you have to prepare how to cover it. You have to decide if you need to request loans or if you can carry the entire cost of starting the business on your own. There are several fund sources for a business which include: business loans, grants, investors, etc. Whatever you decide, make sure you have a source of funding for your business to avoid failure due to lack of funds as some businesses fail because they run out of money before they can make a profit and can't sustain the business anymore.
· Determine your business structure
There are several types of business and so an entrepreneur has to determine which type of business they want to run. They could decide to run a Sole Proprietorship where they are fully responsible for the business. They could also decide on a partnership where at least two people are liable for the business as its owners. Alternatively, they could decide that their business should be a corporation which legally makes the business a separate entity from its owner(s).
· Register your Business/Business name
Registering your business gives your business credibility. It builds trust and allows your customers to take you seriously. Also, securing finance for a registered business is a lot easier than doing so for an unregistered one. For corporate businesses, it makes it easy to employ workers and pay salaries too. Also, you need to register your Business if you want to open a business account.
· Market your business
You have to find a way to sell your business to your target market. You have to do some form of publicity for your business. The method of advertising or promotion is usually determined by your target audience. There are a lot of ways you can make people aware of your business: television ads, social media ads, flyers, billboards, the introduction of incentives, etc depending on what type of people your business caters to.
· Open a business bank account
To maximize profit and track the finances of a business, it is wise for a business owner to open a separate business account for their business, that way they can keep tabs on the day-to-day expenses and incomes of the business. This helps them to determine if profit is being made and helps them to make smart financial decisions too. It helps to keep business funds separate from personal funds.
Starting a business requires that you understand the commitments and challenges involved. It requires energy and resources. Despite having a good business plan or idea, an entrepreneur can still encounter certain challenges while trying to start a business. Some include:
· Having enough capital and cash flow to keep the business going
· Rejection from potential investors down to potential customers
· Staying committed to the business.
· Finding the right location for a business
· Time Management.
· Balancing work and personal life
The icing on the cake: Bridger is an Invoice financing solution for African businesses. There’s no need to wait weeks and months for payments from the buyers. As soon as an Invoice is issued, Bridger software automatically pays the value of the invoice instead of waiting 30 days, and you can rest easy knowing every step of your cash cycle is being managed quickly, efficiently, and accurately.
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