25/07/2017
BUSINESS CLASS 004
Knowing the business sector
It would be much easier for you to be able to know the sector, you are venturing into and much more advantageous if you are setting up your business in a field where you already have experience as this would make it easier for you to have contacts.
This would help you find the right staffs where you can trust the people you know- people who tend to know what they are doing might work harder for someone they know and you would have to spend much money finding them. Knowing suppliers and customer too is another advantage.
Business plans
One might wonder why he has to bother about business plans. Well he, who fails to plan, plans to fail. One needs to write out his or her business plans. For instance an entrepreneur already knows what he wants to deal with; he could start by making plans on what it would take to set up, who would run the business, how much income he would need to generate. Answering these questions is crucial if the business is to stand a chance of starting off the ground.
So the first step is to write a business plan.
The importance of writing a business plan in a document is to help clarify one’s thought. It is important to put them down then discuss them with a professional. Putting them down in a paper helps you to reason logically, it also helps you sell your products to your customers in an organized way.
Who is the plan for?
Your bank manager at some point would want to have a look at it. Especially if you are requesting for a loan, investors too would be interested and would also want a copy. You could also show it to friends for their honest opinions. As several minds are always important than one.
Once you have started you need to go back and read up on your business plan to be sure that you are following up and if there is need for improvement you can add up on it.
How big should the plan be?
This should be between five to ten A4 pages and it should be detailed having all your ideas in it well enough to get the bank to give you that loan
The structure of the business plan is always
contents
executive summary
the market
the product or service, including unique service plan
competition
barriers to entry
management team
SWOT analysis
Financial projections
Funding requirements
Exit strategy
Appendices
Business identity
One must choose a good name for the business; he or she must make sure that nobody is using the name; he or she could register with the corporate affairs commission. He or she must also go on further to create a business logo, and also business stationary to have the feel of the business. Then go on further to tag the brand.
Recruitment of staffs
To hire the right set of people, there is need to watch out for certain characteristics such as:
Attitude
Experience
References
Induction and training
Marketing your business
At this point one must focus on reaching customers, investors and the bank.
What he or she wants to sell
What to tell potential customers and investors
At this point different mediums such as leaflets, posters, vehicles, premises signage, local papers, magazine advertising and Radio broadcasting.
One could also do well to follow up the customers to know their intake on the business it is this feedback that helps an entrepreneur to know what the business really needs to improve.
Promote your business on the internet, an entrepreneur should do well to have a web, a blog so as to be able to communicate with other internets users this also gives him or her wider frontage or avenue to advertise the business.
Finally an entrepreneur needs to learn to adapt to constructive criticisms meaning it is not at all times that the business might do that well in the market. Many customers might criticize the product, at this point it is advisable for the entrepreneur to take it in god faith and improve on the product instead of getting discouraged and ending the business or turning a deaf ear as this would further increase the longetivity of the business.