Recently, I got into an argument with some guys about what #120,000 can do. Being the business oriented person that I am, I mentioned that it can start a sustainable business. These guys disagreed and then the argument started, they said it could only start petty businesses like sweets, biscuits etc. I totally disagreed. The argument went on and on, along the line, a friend intervened and mentioned that a guy started a bread business with just #60,000 and is now making #800,000 monthly. Imagine, I argued further that only lazy and indiscipline people will not be able to do business with #120,000. As the argument progressed, I realized a lot of things – knowledge sometimes can be found in arguments!
I want to share some of the thoughts that came to my mind with u quickly;
Starting a Business isn’t really just about desperately having a means of income, it goes beyond that. If you are interested in starting your own business, you need to do your homework well.
What is this homework that you have to do?
Know thyself
This is very crucial in determining the appropriate type of business for you. Lots of businesses abound; not all of them can work for you. I believe what can help you is to know your kind of person, your weakness, your strengths, your adaptive and tolerance level. In business, either you are a service provider, products sales person or small scale manufacturer; you will be dealing with people. People affect businesses in a huge way, but you as the entrepreneur determines what reaction you will get from people by the way you carry out your business. Some people can never be good for a sales business because of the kind of persons that they are, it isn’t wrong, they are not gifted in that field, because they cannot follow up on debtors, make a customer agree with their price, or cope with customers reactions to their prices, and they can’t even cope with the risk of buying and selling. These people are better as service providers or just employees. As service providers, they can do well by having people to help them.
Know your environment
Opportunities abound a lot in our environment. These opportunities provide us with business ideas but not every type of business is good for everybody. Seek to meet needs in your environment; fill a gap – this will guide your decision on the appropriate business to start. It's not so good to enter a business that's already crowded; it will limit your pricing strategy and options. Be unique; look out for opportunities providing cheaper and more quality resources that are needed, consistency of supply and alternatives.
Know your weakness
These as well as your strengths are very essential for you to determine what type of business to go into. They help you understand the best environment, condition and industry to operate in.
Know your destination
It is very important that you know the height you want to reach before you start, this will help you to know the type of information you need and if there is need for further training; it also helps your focus so that you don’t start jumping from one line of business to another. Knowing your destination also helps you to identify resources that are relevant to your success, helps you determine the appropriate amount of capital needed.
Know a little of Bookkeeping and Financial discipline
You don’t need an accountant or need to be an accountant before you can do this. All that is essential is for you to have a record of your income and expenses on a regular basis. Most small scale businesses have failed as a result of the entrepreneur’s default in this aspect, they are usually more concerned about the money coming in and they keep spending and spending , not making provision for their capital which needs to be reinvested. By the time they get to realize that the business is no longer liquid, it is almost too late and the business folds up. I therefore advise that a periodic check be conducted on the financial figures and assets of the business.
The purpose of business is mostly to make profit from which a living is earned for the owner, but the owner needs to bear in mind the sustainability of the business. Profits usually fluctuate based on the level of activity or sales, sometimes it can be high and some other time, it may be very low. It is advisable to make enough provision for the rainy day through the attitude of savings.
Know your God
I believe that things that are beyond and also in our control need to be committed into the hands of God. No matter what we do or try to convince people to patronize our business, only God can control their hearts in our favor. Business can be very risky, it is important to be prayerful to cross the many hurdles that we might encounter.
I'll take a pause at this point, might continue later but I will really have you guys share your own experience in business and the lesson you would like other people to be watchful about below in the comment section – I can’t wait to read your comments.
Yours sincerely,
Go and Prosper.
Follow Tosin Kayode on Twitter, @tospet16
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