A wise man once said “A DREAM written down with a date becomes a GOAL. A goal broken down into steps becomes a PLAN. A plan backed by ACTION makes your dreams a REALITY” Greg Raid
Due to the current economic situation in Nigeria and with a lot of retrenchment exercise going on within corporate organisations, it is time for existing and prospecting salary earners to start a business venture or have an investment plan that will bring additional income when the need arises.
Starting your business venture. What are those things that you are passionate about? What are those things that the people in your environment need and currently have no provider? Decide to be that provider. Choose a realistic date to start to plan for the business (my preference for you is NOW!!!). Make a list of all the costs you will need to start the business and to run the operations for the next 6 months pending the time cash sales come in. Discuss with people in similar trades to have an idea of the costs involved and potential sales volume. Consider the costs of raw materials, labour, capital equipment, importation, licenses, incorporation, advertising, transportation, finance costs (if you are obtaining a loan), rent, utilities (electricity, telephone, water, internet, etc.), stationeries, taxes (federal, local, state), fuel etc.
Determine where you will source the raw materials and all the other inputs needed for the business to commence and continue. As the business grows, your business contacts grows and you will be able to get better deals for the inputs. Determine what your selling price will be? Find out the selling price of competition and ensure there is a margin or spread between the cost price per unit of your product and your selling price. The sole purpose of any business is to make a profit. If there is no margin you might need to source for cheaper inputs. You might also need to increase the volume of your business so has to reduce the unit cost per product. Take a sample survey of your target market to know if they would be interested and willing to pay for your product or service.
Consider incorporating the business and putting structures of where you would like the business to be at the end of 5 years. You might not necessarily have the staff for the structures at the inception but you will know where the business is going and then grow into those structures. Start with a capacity that you can manage and scale up as you gain patronage. Find out if there is any regulatory body regulating that industry. Find out if there is any trade association that is profitable and beneficial to join.
Funding for the business. A good place to start will be from your savings account, start small, and use this to get your hands dirty. As the business grows, ask friends and family members for contributions or soft loans. Lodge all your sales proceeds in a business account so that you can properly monitor your income and expenses and keep faithful to passing all your transactions through your bank account. Discipline yourself to keep your personal expenses away from the business account. To reduce bank charges, maintain your business account with the bank that has the least fees and charges. As the business grows further, approach a financial institution for a business loan and be faithful with the repayment of the principal and interest so has to have a good credit history and have a constant source of funds for your operations. At this point, think about coming into strategic alliances with business partners that have strengths in your areas of weaknesses. Ensure all arrangements are properly defined and documented with the help of solicitors.
With time you will feel comfortable enough to resign from paid employment and live in the Reality of your dreams.