More Things To Know Before You Jump Into Business

More Things To Know Before You Jump Into Business

Editor's note: This is the second installment of The Plunge, our series for aspiring entrepreneurs. Read the preceding part here.

6. Don't build a business around something you don't like.

While the common expression 'follow your heart' might not be the best advice to give anyone, it's always best if your heart is in your business. If your passion can be turned into a business, that's probably what you should be doing. Things can get really hard, and oftentimes what keeps you going is your love for what you're doing. If you don't love it now, you will love it even less when it becomes stressful.

Questions to answer:

What are you passionate about?

Can you turn your passion into a business?

If you start now, will you still want to run this business in five years?

7. Accurate legal information is a necessity.

Many Nigerian businesses get away with illegalities every day but this isn't anything to commend or follow. Your registered business is an entity operating within the boundaries of the law and it is your responsibility as its owner to research those laws. You can do it yourself to begin with but you should speak to a lawyer as soon as you can to make sure you get professional advice and help you understand the legal requirements for running your business smoothly. Know the taxes you should pay, know what you're liable for (and what your business is liable for), get a grasp of labour laws and learn how to protect yourself if your business fails.

Questions to answer:

What kind of business structure should you operate?

How much tax should you pay?

How can you protect yourself from liability?


8. Your business model is supreme.

More important than your fantastic concept and the money you have, your business model can make or break you. A good business model generates revenue consistently: if your business cannot pay its bills, it won't last long. Use this guide to develop a functional model your business can run on successfully.

Questions to answer:

What's are the most important things to know about the market your business will operate in?

How will your business generate revenue regularly?

What do potential customers think about your business model?

9. You will need to manage people.

If you're the kind who dislikes interacting with people and you'd rather keep to yourself, you should prepare to leave your comfort zone or you might need to reconsider starting a business. Listen, businesses are about people. From suppliers to customers, you're going to need to manage different kinds of people if you're going to run a business (even if it's a one-person venture). Start learning effective people management here now.

Questions to answer:

What's the greatest difficulty you have when relating with people?

How can you improve your people skills?

What business networks can you join to help you practice interaction?

10. Your business account will always require your attention.

At least until you can afford to hire an accountant. We can assure you that money has never been as important to you as it will be when you start running your business. Every naira will matter, and you should know where your money is going otherwise your business will bleed cash till there's nothing left to sustain it. Learn how you should manage your business finances by yourself here.

Questions to answer:

Can you afford to hire an accountant from the beginning?

How will you save a portion of my profit?

How will you keep my personal account separate from my business account?

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