THE FRIDAY JOURNAL – STARTING OUT: WHAT YOU NEED TO KNOW

Do your Research
The importance of hard work cannot be overemphasized and this is particularly important when starting your business. It is essential to carry out substantial research before embarking on a project. Say, you want to start a skin care business, for example. You should know where the core ingredients that you require are sold for cheapest. Doing research includes, seeking out similar businesses and reviewing what their products are like, running a search to get the business name verified at Corporate Affairs Commission, carrying out a Break-even analysis to determine if the business venture will yield any money, as the primary aim of any business is to make profit. It is also necessary to identify avenues for possible funding and the demand pattern of your target audience.

Evaluate and develop your Business idea
Based on the research that has been done, you then need to evaluate and develop your business idea, in a detailed business plan. This plan is expected to include; the proposed business structure, a SWOT analysis, a detailed description of the service to be offered, specific business goals, personnel requirements, a standard marketing plan and a profit/loss projection and cash flow analysis. We can help with that, find out how here Audeo For Start-Ups.

Sort out your Organizational Paperwork
The next step is to get all organizational paperwork in place. This means, getting the Company name registered, deciding how the Company will be taxed. Getting this sorted out in the beginning sets the tone of seriousness for the business. This is also the time to contact Audeo, if you have not already, and a Lawyer, just to be certain that you are on the right path. You should get a business account opened. This is to ensure that the business is separate from you as an individual.

Prepare to Bootstrap from the Beginning
Definition: Bootstrapping in business means starting a business without external help or capital. Such startups fund the development of their company through internal cash flow and are cautious with their expenses. Generally at the start of a venture, a small amount of money will be set aside for the bootstrap process.

Let’s be honest. You might not get that investor/partner that you want. At least, not in the beginning. Even if you do, it will be foolhardy to spend the funds at every instance. Instead of renting an office space immediately, work out of your sitting room or boys quarters. In place of a full time resource for Back office operations, hire Audeo to handle all back office documentation. Ensure that you have maximized the utilization of yourself as a resource before you engage other human resources. This is the period to be innovative and creative and improvise.

Pay Yourself
Even as the owner of the business, you too are a human resource. You should set out a salary/commission for yourself. Apart from ensuring that you do not neglect yourself, it prevents you from spending out of the general business purse, thereby plugging leakages from the beginning.

Final Note
Start small and do not quit your day job just yet. Give your business a few months to be steady before quitting. It will bring in needed extra income and some more time to get a hang of things.

In other news…
Social Media week is happening very soon and we are very excited. The focus for the year is “The (new) language of Technology: The Future of Communication in Africa”. It is a week-long event and we will definitely keep you updated. Find the Schedule at https://socialmediaweek.org/lagos/schedule/

Will you be attending SMW? Let us know. It would be amazing to connect with you.

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