As you desire to start your own business or intending to become your own boss. You should note that, certain factors must be put into consideration to avoid any form of business failure. Before you think of setting up a business, you must have your business plan, open different bank account for the business enterprise, keep accurate account records and acquire some experience on the line of business you plan the run.
1. The need to prepare business plan. Good business plan is the backbone of any business settings especially when you are starting a business. It will guide you on the size of trade, capital employed, mode of raising capital by personal funding, use of credit card, or bank loan. It teaches you market demand and ways of fixing the price of your goods, competitor's strength, types and sources of raw materials to be used, and whether to start from home or to get an office accommodation. Price audit, break-even analysis, market analysis, sales and profits forecast and cash flow projections are included in the business plan.
2. Open current or savings account. Open a different current or savings account for the firm apart from your personal own. I recommend you open separate account for VAT, PAYE and Taxes so that all the monies accrued for Taxes, VAT and PAYE can be paid into this account for further remittance to appropriate authority.
3. Keep accurate account records. Some businesses failed at their early stage because the entrepreneur failed to keep accurate records. For a commercial or industrial enterprise to be fruitful, every transactions and customer's information must be adequately kept. You can maintain the prime records like cash book, sales and purchases ledgers, bills receivable and payable. At the end of financial year, ensure to prepare analytical trading, profit and loss account and balance sheet to give details of profit and assets base of your business.
4. Acquire some experiences. It is very significant you understand the nature of business you are going to set up. This will facilitate your success in the trade. I advise you consider taking a job before starting your own business, as work experience in the field you want to venture into may lead to the growth of your business enterprise. Think of getting a paid job or voluntary service for at least a year, to reduce the risk of total inexperience.
To end with, some useful free guides are on the internet about the steps to starting your own business, incorporating a company and other information that can increase your profit-making. Others are Chambers of commerce and industries, SCORE- a non-profit firm gives advice and training to small business owners.
For details on how to start your own business, click here
Steps To Starting A Business
