| If you choose to start a business there are a few things you should be aware of. At the outset it would be advisable to create a checklist so that you properly execute all steps needed to successfully set up your new venture. Failure to properly complete all the tasks required could result in an early failure of the business.
 The tasks that you will be required to complete include the following:
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First develop the idea – it is important to ensure that whatever product or service you will be offering you ensure that the idea surrounding it is fully developed. Make sure to properly document and think about the idea over and over again, so that there is no confusion in the development process.
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Determine the market need – in other words it could be a great idea, if there is no market demand then it will never make it out of the gates of being just an idea. Ensure that there is a market need and that the market will be willing to pay more than the cost of the product/service. It is important to establish a credible marketing plan;
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Develop the costing and financial projections – this is a very important step. You must ensure that the cost of offering the product / service is properly worked out. In other words in the case of a product what is the cost of acquiring or manufacturing it; and in the case of a service what is the lowest cost you are willing to deliver it at. Make sure to then prepare financial projections (most importantly cash flow) to determine financial sustainability;
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Determine your capital requirements – you should have adequate capital to allow the business to reach to maturity. You should also identify the source of capital so that you are not looking around for additional capital when the business should be growing. This is one of the most common mistakes.
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Prepare a comprehensive business plan – bring all of the above together in a comprehensive business plan;
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Setup the company – determine the legal structure to be used, that is a partnership, company (type of company), etc. Once that is done then you will need to do the following:
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Satisfy all regulatory requirements – tax registration, licences, etc.
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Commercial transactions – such as determine office space and filing patents or trademarks
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Setup the accounting and administrative system
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Hire staff that may be needed
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Other administrative needs
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Once you have setup the company then you should execute according to the detailed business plan. Of course because of changing business environments your plan should have some amount of flexibility in order to adapt to any changes.
This list is by no means exhaustive and gives an indication of some of the steps you should be thinking of in starting a business. What is going to be important is that you get proper professional advice in guiding you along the way. Many businesses fail because of improper planning, and eventually have to sell out to someone who capitalizes on the good idea you had because of improper planning.
Mindyuhbusiness.com offers this type of expert advice at a cost less than you would normally get because of our delivery platform.
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