9 Things every entrepreneur needs to know in setting up a new business
#1 Have a Vision
You can’t start a business without a good vision. Your vision needs to build a real-world solution to a real-world problem, preferably in a sizable market. And, in all cases, do what you love, as it is important you have a passion about your startup, to get through the good times and the bad.
#2 Goal Setting
Set a business goal. Your business goal should include ‘what to produce, how to produce and for whom to produce.’
#3 Dream Big but start small
Learn to dream big but be ready to start small. Remember, starting small does not mean remaining small and that is why you have to dream big. Even the richest man in Africa today; Aliko Dangote started small by selling sweets. Stop delaying, start that business today.
#4 Identify people’s need
Identifying people’s need will help you in providing goods or services that will satisfy their need and also add some digits to your account balance. One of the best ways to do this is to identify the common need of people (what they can’t do without a day) i.e family needs.
#5 Make market research
Before you get started, you need to do some preliminary market research for your startup. How large is your market? How competitive is your industry? How well funded are your competitors? Is it a market that will appeal to venture capitalists? You want to make sure you know what you are getting yourself into before you start. You are practically trying to kill your startup before you start, and if you can’t find a good reason to kill it, you are off to the races.
#6 Have a business plan
Once you have finished your market research, you need to build a business plan, determine your revenue model, build a sales and marketing plan and build a budget for your business. In addition to budgeting for the development of your product or service, make sure you leave enough budget to test your sales and marketing efforts and achieve a profitable cost of customer acquisition and proof of concept that will appeal to future investors.
#7 Product development
Now, you need to build the actual product or service you plan on taking to market. That always starts with a good product and pricing strategy. In building your product or service, you will need to decide if better to build your startup with in-house employees or third-party contractors. In all cases, you will want to build a minimum viable product with which to test and to optimize over time–don’t build a “Rolls Royce” if a “Toyota” can do the job to star.
#8 Building up your team
Also, you need to build your startup team and determine your team’s roles and responsibilities. Once you know what roles you need to fill, you need to recruit employees for your startup, determine employee’s compensation, determine employee’s benefits and potentially set aside equity to key employees, protected by a time-based vesting schedule. In all cases, make sure you hire people that are well-suited to fast-moving, nimble startup environments, preferably with a proven track record at prior startups.
#9 Raising Fund
The last piece of the puzzle, which is required for any startup, is capital. For very early stage businesses, money is important and there are various means of sourcing fund which include your personal savings, loan from bank, support from friends and family members or you look for investors.
Note that fund from investors to start up a business is not advisable as investors may see it as an opportunity to dictate how to run the business.