How To Start Managing Your Own Business
Starting and running a business
is a creative, challenging and flexible mean of securing one future. It involves
creating a life and making a living.
You need courage,
determination, consistency and persistency to be an entrepreneur. Getting
started as an entrepreneur involves leaving the relatively safe certainty of
the corporate world, where pay checks arrive regularly at the end of the month,
and moving into the uncertainty world of business.
The following are steps
and decisions that need to be taking by an entrepreneur:
i. Identification of business opportunities or ideas
ii. Selecting an opportunity
iii. Preparing a business plan
iv. Gathering resources
v. Selecting the legal form of the business
vi. Obtaining licenses, permits and approvals from the relevant
government agencies
vii. Launch your business
Identification
of business opportunities or ideas
The starting point of the establishment of a new
business is an idea of a product or service which can be used to satisfy
identified needs of individuals, families, or organizations.
Such a product or service must offer a viable
solution to a problem experienced by potential consumers for which they are
willing to pay.
It is only if potential consumers can see the
benefits of the product or service and are willing to pay a price satisfactory
to the entrepreneur that we can say that
a business opportunity exists.
Factors to consider in choosing business opportunities are:
·
- The skills you will need for successful
operation of the business
- Relevant experience
- Personal interest and preferred life-style of the entrepreneur
- Support of the family
- Capital
- The desired level of income
- Risk tolerance
- Relevant experience
- Personal interest and preferred life-style of the entrepreneur
- Support of the family
- Capital
- The desired level of income
- Risk tolerance
·
Choosing
Name For Your Business
To be useful to the business, it should be easy to
pronounce, easy to remember, reflect the nature of the business and should be
unique.
The business name must be registered with the
appropriate authorities such as Corporate Affair Commission.
The following are the legal form of the business that are available:
- Sole proprietorship
- Partnership
- Liability Company
- Public Corporation
- Cooperatives
- Joint venture
Why Business failed
Many factors are responsible for business failures. Most of these factors are categorized as external and internal factors.
External
factors
- Poor Macroeconomic Environment
- Inconsistency in Government industrial policies
- Lack of infrastructural facilitie
Internal
factors
- Lack of proper planning
- Poor management practices
- Poor Customer Services
- Insufficint Marketing Strategy
- Insufficient Marketing Strategy
- · Owner’s behavior towards the business
- · Excessive Expenditure
- · Inadequate business skills and knowledge
- · Salaries
- · Production of outdated products or services
Some
of the common problems of small scale businesses are:
- · Finding it difficult to be established in the first year or two years.
- · Finding and keeping customers.
- · Developing products or services that would stand the test of the time.
- · Inability to keep competent staff.
- · Finding it difficult to delegate duties to employee(s).
- · Inability to expand the business as a result of competing with larger companies (Competitors).
- · Limited skills and knowledge to run the business.
- · Limited capital and inability to make good use of available capital.
- · Use of offices or environment that unsuitable for the selected business.
Importance of creating a
winning business plan
It
is always good to have a business plan before embarking on any kind of
business. Having a business plan ensure that the entrepreneur remains focused
on his or her plan.
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