New businesses have continued to spring up in various parts of Nigeria almost on daily basis. Some of these businesses became successful while others have issues right from the period of its take off.
This entails that there must have been something extraordinary done by the successful business owners which the owners of the unsuccessful business failed to address.
A good business man should first of all gain the necessary business ideas that will excel his type of business than blindly investing in a business that he is a novice in.
Having a business plan is the first step for starting a business because it answers the fundamental and critical question of the amount of money needed for a takeoff as well as other logistics involved.
Apart from that, it answers the fundamental 5w’s and the H of business. By this, I mean what to produce, when to produce, why producing the brand of product, where to produce the product, whom are the target customers and how to produce the product.
Nigerians who want to start new businesses can generate cost by making three simple lists, few educated and intelligent guesses and then sum up the whole thing.
The directives below will be of great help to Nigerians intending to start a new business
List spending on assets:
By business assets, I mean the things you will use in your business for a very long term; for instance, if is a putting up a brick-and-mortar store, it might involve items like shelves, tables, cash register and so on.
A graphic artist might likely need drafting board and specialized printer plus other things. If you are producing or selling products, think about the things you need to put in place at the takeoff.
The simplest example is the book a bookseller requires to stock in its shelves or raw materials that a manufacturer needs to commence production.
All these make up the takeoff assets. Embark on market research to find out the actual amount of the assets.
List spending on expenses:
There is another unavoidable expenditure apart from the assets; such expenditure includes things like creating of a website, paying for rentage, paying salaries and so on.
After you have calculated the likely expenditure, sum up your take off assets and your take off expenditure to arrive at your starting costs.
Remember to add extra money because prices of thing in Nigeria fluctuate so as to meet up in case it rises.
Determine the amount of money required for the take-off:
Carry out a feasibility study to ascertain the amount of money required to commence the business. Here, you need to proceed to the particular market in Nigeria where the good you intended selling can be procured to make market research.
After you have gathered the necessary information, you need to analyze it so as to know the actual take off cash for the business.
It is an ideal thing for business owners in Nigeria to ascertain the cost of starting a business before venturing into such business.
A lot of new businesses collapsed due to the inability of the business owner or manager to discover the amount of money needed at the take off of the businesses.