It first starts with the idea, is it profitable?

Sometimes, business owners think they have a great idea and jump into launching their business without thinking through who their customers will be, or why these people should want to buy from or hire them, do you have a passion for making people’s lives easier? Think about that deeply and if that idea is a problem solver, then voila!! You’ve got the magic; all you need is to make it profitable.

Imagine a perfect marketer, who is good at negotiating, and persuading customers but do not know how to close a sale! Don’t worry, BBA is here to help you turn that life changing idea of yours to profitability.

You cannot not have a business plan! It is a must. A lot of mistakes are made by new businesses rushing into things without pondering these aspects of the business. You need to find your target customer base. Who is going to buy your product or service? If you can’t find evidence that there’s a demand for your idea, then what would be the point?

Will your business idea need money? Assess your finances.

It’s never a bad idea to overestimate the amount of start-up money you need, as it can take time before your business begins to bring in sustainable revenue. Additionally, don’t overspend when starting a business. Understand the types of purchases that make sense for your business and avoid overspending on fancy new equipment that won’t help you reach your business goals.

Depending on your type of business, be it at home, online, social media or a brick and mortar business, you will need some sort of structure. Draft how you want to structure your business and do not forget to have a to-do calendar. This helps you stay focused and ready to act.

Once you have put the necessary structures in place, it’s time to build your team. Even if you were selling from home, you will need a delivery person at some point to deliver your items to your customers place. “Your product is built by people “Identifying your founding team, understanding what gaps exist, and determining how and when you will address them should be top priority. Figuring out how the team will work together … is equally important. Defining roles and responsibility, division of labour, how to give feedback or how to work together when everyone is in the same room will save you a lot of headaches down the line.”

Everyone wants to start a business or have another stream of income especially in this period of uncertainty where so many issues struggle to remain relevant in an otherwise recession prone period. A greater percentage of the populace have discarded the buying of foreign-items and have started patronizing Nigerian brands in a bid to still maintain some semblance of the same standard of living.

I am sure most Nigerian household brands of these items; baby foods, diapers, matches, toothpicks, organic foods and drinks, ankara-branded items, packaged processed foods, cornflakes and pasta would have seen a quantum jump in their sales.

Because of the uncertainties in the country, many individuals have decided to start businesses of their own. However, before you do that, it is important to consider whether you are really suited to run a business or be in a paid employment.

Starting a business is not about you alone but having the necessary skills, knowledge and the resources to wait it out till you start churning out profits. You also need to invest time into proper planning and coming up with a business plan.

Here are some few questions to ask yourself before launching out as a business owner whether on full time or part-time basis:

• What is my passion?
• Can my passion be turned to a business?
• Why am I starting a business?
• What business line do I want to start?
• What skills do I need to start a business?
• What are my business goals and objectives?
• Who is my target customer?
• What products or services will my business cater to?
• Am I prepared to be committed to the business?
• What proportion of my time and money do I want to invest in my business?
• What differentiates my business idea, product or services from others?
• What other possibilities do I see in my business?
• Where will my business be located?
• How much money do I need?
• Will I need to get a loan? Type of loan sources?
• Do I need suppliers and what kind?
• How many employees will I need?
• How soon will it take for my product or service to be available?
• Who are my competitors?
• How will I price my product or service?
• When do I start making profits?
• How much income will my business need to generate to stay afloat?
• How will I set up the legal structure, entity and name?
• Do I have a business Coach or mentor for support?

6 Proven Steps to Avoid these Pitfalls

Don’t be like Kachi, who started her provisions small business, couldn’t maintain it and collapsed after 12 months. Kachi woke up one morning in the 2nd week of the 9th month she had been in business to find out that the money she had been saving was all gone. Kachi has been saving some money inside a piggy bank popularly referred to in Nigeria as “kolo”, a wooden box that has a tiny opening. She saved everyday she made a sale. Unknowing to her, her employees have been removing money from the Kolo gradually by opening the box and nailing it back without any suspicion.

What do you think would have been Kachi’s problem?

Clearly, she had a STAFFING problem. If only she had known that staffs can make or break a business.

Staffing

You always want to have and keep “rock-stars” in your business. However, if you do not hire the right people or motivate them, you would always have a problem like Kachi on your hands. If your strength is not in recognizing skills and talents, find a recruiter to help you do so.

Finding Customers

Every small business have the challenge of finding prospective customers. If your product/service adds value to people’s life, you do not need to spend a huge amount of money on advertising in the initial stages.  A great campaign tool is “Facebook Ads”. This online tool has been created to target and re-target potential customers.

Time Management

You should create a list of goals. What do you want or need to accomplish this year, this month, this week, or today?

Also, be sure to assess yourself regularly. In what ways are you not using your time wisely? How can you better schedule your day or week to make your life easier? Ask yourself these questions and plan.

Fast Growth

Yes, you want to make profit as fast as you can. You want to have clients trooping in and out of your business. Yes, you can get there, but the dangers of rapid growth can cause lack of fulfilment of your service/product, cash flow, and poor customer service.

You find out that you are not nurturing customers as you used to because you are now POPULAR. Having a stable structure and delegation in place will help you manage your business effectively even when you start becoming successful.

Dipping Hand Inside Business Money

As tempting as it can be, avoid taking your business money for your personal wants and needs. “I will transfer it back, you say, but it never happens. Create a separate account for your business without ATM. Be stringent with your business money as this will yield more profits for you.

Ignoring Marketing

Yes, you are a people person, you sell value, you know people, but do you know there are millions of people out there who are unaware of your product/service? With the rise in technology, marketing has become so cheap, easy and accessible. As part of your laid down business structures, marketing should be a top priority.

Keep Your Business Plan Short and Simple

First, you want your business plan to be read (and no one is going to read a 100-page or even 40-page business plan).

Second, your business plan should be a tool you use to run and grow your business, something you continue to use and refine over time.

An excessively long business plan is a huge hassle to revise—you’re almost guaranteed that your plan will be kept in a desk drawer, used as plantain wrapper or never to be seen again.

Know Your Audience

Write your plan using language that your audience will understand.For example, if your business is into weight loss programs avoid jargon, or acronyms that won’t be familiar. Use simple English when explaining what you do as this FREEBIE you are reading.

First Three Components to Write When Planning Your Business

1.Overview of Your Business: This is an overview of your business and your plans. It comes first in your plan and is ideally only one to two pages. Most people write it last, though.

2. Opportunity: This section answers these questions: What are you actually selling and how are you solving a problem (or “need”) for your market? Who is your target market and competition?
3. Execution: How are you going to take your opportunity and turn it into a business? This section will cover your marketing and sales plan, operations, and your milestones and metrics for success.

Last Three Components to Write in Your Business Plan

4. Business and Management Summary: Use this part to describe whether you need to hire or outsource any need. You will also provide a quick overview of your legal structure, location, and history if you’re already up and running.
5. Financial Plan: Your business plan isn’t complete without a financial forecast. Potential Funding Sources.
6. Appendix: If you need more space for product/service images or additional information, use the appendix for those details.