Thinking of Starting a Business? 8 Things to Check Before You Register It
I was recently privileged to give advice to young entrepreneurs on what to consider before getting started in business. Starting a business can be very exciting and fulfilling for the involved parties. However, there are lots of hurdles to overcome, (especially by new business owners) before one can begin to make profits.
The newly established business must first be viable and one also has to consider a number of legalities and financial implications. One should also understand that the process of registering a business is only the tip of the iceberg. There are several commercial, legal, financial, and strategic aspects to consider when launching a business venture.
These include:
- Have a Clear Business Idea and Value Proposition
Before settling on a business name, one must think through what one intends to achieve and what value proposition one will bring to the market. A prospective entrepreneur must think through the purpose of the business and the problems it will solve.
- Deciding on and Registering a suitable Company Name
The prospective company name should befit the venture, be appropriate and unique, and have the potential to grow with the venture. Therefore, it is important to decide on the most suitable name for a venture and register it with the Corporate Affairs Commission.
- Identifying your Target Customers
Understanding the prospective market and customers is important. In other words, one must know what one intends to sell and who will buy the goods or services. This can be done by conducting customer research and identifying the characteristics of the target customers, such as: age, gender, location, occupation, interests, etc.
- Conducting Due Diligence and Market Research
Before launching a venture, it is important to conduct due diligence and market research to ensure that there will be demand for the intended goods or services. This will help reduce risks associated with launching a venture and ensure that profitability is achievable.
- Develop a Sustainable Pricing strategy
It is important for a prospective entrepreneur to identify the most appropriate pricing strategy for the intended venture. The costs associated with the proposed venture should be taken into consideration when deciding on a pricing strategy. One should also ensure that one’s pricing strategy is realistic, considering the value provided to the customers, the associated costs, and the prevailing prices employed by competitors.
- Understanding one’s Working Capital and Startup Needs
It is important to understand the amount of working capital and startup costs associated with the venture. Working capital needs should be segregated from startup costs. Start-up costs are the costs incurred when launching a venture whereas working capital is the amount of money required to operate a venture.
- Prepare for Business Compliance
It is important for a business owner to understand the legal requirements and obligations associated with a venture. These may include: legal requirements and statutory obligations, tax requirements, filing requirements, and licensing requirements. A venture’s legal requirements will depend on its nature, and as a responsible business owner, one should ensure that all legal requirements are complied with.
- Separate Personal and Business Finances
One should ensure that a business account is opened, and systems are put in place to monitor all business expenses and revenue. It is advisable to separate business finances from personal expenses.
Pause a bit, and ask yourself, these few questions…
What need am I addressing? Who will pay for it? How will I make money? How will I remain compliant? How will I compete? And how will I grow?
A venture should not be launched or registered just for the sake of having it. It should be strategically planned and positioned to serve a purpose and make profits.
Are you considering starting a new business, registering an existing venture, restructuring, or growing your business?
At D’PSR International, we offer end-to-end business development and advisory services to entrepreneurs and businesses, from inception to compliance, strategy, and growth.
Let’s help you grow your business by building a solid foundation for it to grow and scale strategically and profitably. Do you need a Business Development Consultant to discuss with, book your free consultation now by commenting “YES” in the comment section below.
Mr. Babatunde Karunwi
Business Advisory Consultant
WhatsApp +234 802 875 4741
Mr. Karunwi Babatunde Adeyinka is a seasoned professional with over 20 years of cognate experience in the Financial Services Industry. He holds a http://B.Sc. in Business Administration from the University of Lagos and a diploma in Banking and Finance from the Federal Polytechnic, Ede, Osun State.
He is a Certified Insurance Practitioner with the Chartered Insurance Institute of Nigeria (CIIN), an Associate Member of the Chartered Institute of Leadership and Governance (CILG), USA - Nigeria Chapter, and a Certified AI Specialist from Formazione Business School, Nigeria.
Babatunde is also a Certified Personal Development and Creative Intelligence Coach, and a World Creative Ambassador from Miami University, USA. He holds a Certificate in Innovation Management from the University of Leeds, United Kingdom. He is an Alumnus of the FATE Foundation, Lagos.
He began his career at Royal Exchange Assurance Plc. He is the Founder and Chief Executive Officer of D’PSR International Limited, and Lead Coach at D'PSR School of Development, Lagos.
Babatunde serves on the boards of several organizations including Lenji Group, Voters Awareness Initiative, and DarickanDoneal Company Limited. He is also the Director of Programmes at Voters Awareness Initiative, a civil society organization, and a Facilitator at CILG, USA - Nigeria Chapter. He currently serves as a Mentor, Facilitator, and Business Advisory Consultant at FATE Foundation, Lagos.
A professional speaker, change agent, and performance-driven leader, Babatunde is passionate about leaving the world better than he met it.
He is married to Busayo and they are blessed with two children, Great and Treasure.
