“Own your business”, “be your own boss”…
If you have been paying attention, this is the message of the century and it is a good thing, really.
The problem is that many people who get caught up in the spirit of entrepreneurship do not fully understand how to get started. Some start one business or the other and fail, get discouraged and decide that it is not their thing. Others do not make any move because they think they cannot or do not know how to.
In my opinion, the people who succeed at running their own business(es) understand that foundation is key, they usually consider five major factors before choosing a business venture.
So, what is the first thing you need to consider before starting your business?
Don’t get it twisted, profit is the most important reason for running a business. You are in business to make MONEY (Owo Kudi, Ego). Any business venture that is not designed to be profitable is a charity organisation.
Profit is the difference between your cost(s)- This includes all the costs of goods, operational expenses, transportation,power, phone bills, rent, salary, tax, interest on loans, marketing expenses, any amount it cost you to either get products, customers, get your business running… and oh, the tea or coffee you serve guest or clients in your office-that too adds up to your costs, etc..
Lots of small and medium business owners do not take this into due consideration before deciding on the business to run. This is why it is advisable to learn how to write a business plan but based on my experience this is where most ideas die off-story for another day.
Here are the questions you need to answer before choosing any business venture.
a. Will I make profit?
b. How much profit will I make?
c. How long will it take before I start making profit?
Any Idea that can pass through these basic profit filters successfully can become a business.
Hint: Businesses with low startup cost, low operational and inventory cost are the most viable businesses. You have to always keep an eye on these factors even when your business is expanding, this why lots of companies burst after the boom.
Look out for my next post on the second thing you need to consider before starting your business.
PS: I recently shared why I decided to start my side business on my Facebook private group designed for those who are looking to start their business , where I shared my “Side Business Story”.
If you are interested in learning how to start, run and grow your business, click here>>http://bit.ly/2dy3C77 to gain access to my “Launch your Business” community.