Statistics by experts show that about 50 per cent of first-time businesses fail within their first five years of operation. To run a business successfully, they say it’s important to keep your eye on the basics, as well as the bigger picture, and you will avoid many of the pitfalls that cause enterprises to fail.
The experts say the following are necessary steps in achieving great success in business
Plan for success
Analyse every area of your business, from service or product development through to after-sales care. Document precisely how you propose to make your money, what it will cost you to produce and deliver the product or service and how much profit you expect to achieve. Produce operational plans and financial forecasts. Put together a formal business plan. This should include a statement of your business objectives, a brief history if you are already trading, a description of your product or service, the names, roles and credentials of your management team, a market analysis and details of your resource and finance needs. Also include sales and profit projections, a cash-flow forecast and a projected balance sheet.
Find start-up money
To start a business, you must invest in the business. The journey of finding start up funds will be different for each individual. Some start ups such as consulting, requires a few thousand to get a website and business cards whereas a retail store could need millions of naira or more. Finding the money you need may come for a source you never thought of or may just end up being the frugal bootstrap method.
Build a business plan
For any start-ups, a business plan allows you to gain a better understanding of your industry structure, competitive landscape, and the capital requirements of starting a small business. A study mentioned in “Business Plans For Dummies” by Paul Tiffany states that companies with a business plan have 50 per cent more profits and revenue than non-planning businesses. Writing a business plan just makes good business sense.