When we talk about business, the first thing that comes to our mind is the financial gain but of course there's another side to it which is work and I mean hard work.
Few years back, I lived in an environment surrounded by low income earners. To make ends meet,they started out by selling petty items in front of their houses, then they graduated to owning a shop and Viola! they started their big business, so they thought. Over the years, these businesses barely survived through the first 3-5 years before eventually crumbling or remaining same way they started out.
What​ happened to the big pay check? What errors were made and what do many people fail to see?
To start a business, here are few suggestions:
1. Deal with the Legal Issues first -
Legal issues Connotes registering your business name/company under the requisite body. In Nigeria, we have the Corporate Affairs Commission responsible for such registration before delving into the affiliate body (depending on the goods/services) which depends largely on what you want to do. Gone are the days where a road side name serves, today starting small also means starting right and shows your seriousness to succeed in business.
Advantages of registering your Business name / Company name:
- The sole right to use your registered name alone - When another individual uses it, you can institute a legal action against the individual.
- Certificate of incorporation - The Government issues a certificate of incorporation to registered individuals with a unique number. For companies, the RC no is issued, while the Business name number (BN no) is issued to registered business owners.
- Business reputation - A registered company has more reputation, professionalism, prestige and opportunities both internationally and locally than an unregistered business.
- Legal liability - A company registered can operate independent of you,it can be held responsible for acts such as failure to repay a loan, failure to deliver a good etc. Thus, when an action is brought against the company, it is distinct and separate from your personal life. Note- it is not applicable with a business name owner.
- Business Account - One of the requirements of opening a bank account for your business name or company is your certificate of incorporation. The business account is a more professional way for clients to send money to you.
- Loans - Government grants, loans and support can come easily when you run a registered incorporation.
- International affiliation - Your business can easily extend beyond the frontiers of the local market in Nigeria, You can gain Visas to travel as other countries welcome foreign investors.
2. Open a bank account -
Yes a Bank Account! Most small scale businesses fail because of poor record keeping especially on the financial issues. A business owner should be able to state how much comes in and what goes out of the business regularly. In summary, a bank account separates your personal finance from your business finance. Note that you cannot open your Business/Company account without registering your business first.
3. Open a website/ social media presence
The world has gone digital, an active social media presence speaks more volumes than the physical store. Take advantage of the various social media platforms like Instagram, Twitter, Face book, Pin interest, Snap chat,You Tube and the likes. create your own website page where you can talk about your business and control your business online.It advertises you to the world.
4. Settle books of Account
Books of accounts are Mini financial books you keep. It should state the financial life of the business, the profit and loss ( a little knowledge of accounting will serve), a balance sheet,the cash flow, profit and loss statement, how much the employees earn, including your self. From it it should be easy to calculate the annual returns of the company, tax rate to pay, vat rates etc.
5. Have a ground breaking strategy
Don't be in a hurry to make profit without first sitting down to plan. Ask yourself questions about vision, opportunity, interests, markets needs, profit expectations etc. Strategy will guide you on how to run your business and succeed. Lack of it means you will constantly run into debts, pay heavy taxes, pay outrageous bills to other government parastatals and lose eventually. Be smart with that strategy, consult someone and most especially your lawyer.
Best of luck in your business pursuits and investments.
Labels: Busniess name, Company, Registering a business
