STARTING A BUSINESS WITH 700,000.00 IN NIGERIA
Seven hundred thousand Naira is neither a small amount nor too big amount of money to start a business with.
It all depends on the following and other factors:
The type of business
The level you want to start from
The expected return on investment
The type of technology and machinery to be used. For example, this amount can only buy a medium size camera used in the Nigerian home video industry.
The type of human capital to be employed in terms of their skills and levels
The chosen location for the business. If you are to use some locations at Ikeja, Lagos Island and so on, the cost of renting a good office space alone can gulp this amount
It also depends on the value of your currency and the source of your equipment/machineries and other materials needed for the business.
And many more…factors……..
ESSENTIAL REQUIREMENTS FOR SETTING UP YOUR BUSINESS
According to various experts on business related matters, preparation of a business plan is an essential first step if you want to set up and work in your own business.
The process of completing your business plan will help you to determine if the business is feasible. It will enable you to know if you need financial assistance to start and operate the business,
The lending organization, e.g. the bank, will insist on seeing and reviewing your business plan.
Ask a knowledgeable person in business matters to draw up a business plan for you, if you can not draw up one for yourself
The essential components of a business plan among other components include:
1. A description of the business which would include an overview of the industry in which it is to operate
2. How the business is to be structured, managed and staffed,
3. Its legal status
4. The products and/or services to be provided
5. The available markets
6. The analysis and description of the market the business will serve, including the size of the market, the customers of the business, the competition, and estimated sales.
7. How the business is to be positioned in the market place
8. The pricing strategy
9. How products/services will be developed and/or manufactured,
10.Direct and indirect costs of production
11.Sales strategy will include methods of sales
12.Marketing strategy will include how the business will be advertised and promoted.
13.Details of ownership and the management team.
14.Financial statements including a balance sheet and cash flow projections
PLEASE ANSWER THE FOLLOWING QUESTIONS:
Did you study any course that is related to the business in question?
Do you have any passion for the type of business being suggested to you?
Is it an important area of niche locally and internationally?
Are you just interested in it because it is one of those businesses in vogue?
Have you done a marketing survey on the cost of acquiring an office space, equipments/machineries and other things that will be needed in the business?
Is there a large market for the products and services that will be produced?
Have spoken with any one who is already successful in this business or someone who has a general business exposure or experience?
How did you come across the person(s) suggesting the business to you?
Have you done a p-roper appraisal of those suggesting the business to you?
What will be their relationship in the business (consultants or promoters or management staff)?
Do you have adequate managerial and financial planning and control experience?
Do you understand financial reports/statements and can properly interpret them for managerial or financial decision making process/purpose
Have you properly done a self appraisal as to whether you can effectively and efficiently run a business?
Some people are good at working for others; some can set up their businesses and employ experience and capable hands to run the business in their presence (you still have control over your business for you can hire and fire); while some can set-up, manage and grow their businesses with little assistance from other capable and experience hands.
Do you need to undergo some trainings in some of the above mentioned areas and others
Above all, have you drawn up a business plan for the proposed business
More articles will ben written on this and other business related topics. Keep visiting the blog
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