Wednesday, 9 December 2015

5 Essential business start-up Questions

Series of questions and answers are necessary before starting any business.
Currently, five out of every ten start-up closed down three years later. Many Entrepreneurs are either not equipped for the necessary skills required to run a business or not analytical to forecast bottlenecks. Entrepreneurs that are well informed will avoid error101-first business mistake by dummies. For me, error101 was costly.
I lost all my savings in my first business just because I was ignorant of these questions. The survival of any business depends on how well these questions are answered.

Why in Business?
Try and honestly answer this question. Do you have a business? How many years old? The question is why are you in business? Let me read the answer in your mind: you are in business because you wants to make  money. Good answer but not the right answer. 8 out of 10 people will tell you that they are in business because they wants to make money. To me, that is where start-up has issues. Let look at some of the companies that has crossed the century Mark- Coca cola for instance; has a core target- to be a leader in soft drink sub sector in the world. The target is not to be the richest beverage company in the world no! money the sole priority of a business implies that when the money stop coming, that is the end of the business.  Why in Business? you are in business to meet needs and in process makes money. Yes! you can't meet needs or solve problem without adding value. Change your mind set, and build a century business.

Why this business?
This question  is very necessary to any start-up. Why that business? Some will say it is that business because many people are doing it , that is the latest business in town and many more reasons. To me, these could be  wrongs reasons. Going into a business for the wrong reason could be disastrous. When pure water business started, hundreds of companies dived into it but they never lasted. Today, those that are doing it are those that had a solid reason for starting in the first place not those that started because many people are doing it.

Also check 5 Business that could make you the next millonaire in Nigeria
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Who are the customers?
The knowledge of the customers is very essential to the success of any business. Which platform are you going to connect with  the customers? Social media? Offline? Do the customers actually need the product or you want to create a new demand? Why buying from you and not their existing customer? what is your selling point? Price, quality, convenience?

Who are the competitors?
It is essential to have a good knowledge of the competitors: Price, Capital, size, Location,  strength and weakness. This will assist in formulating market entry strategy.

What is the strategy?
A solid strategy is required to gain significant market share. what is the market entry strategy? After gaining significant share of the market, what is the plan to engage and relate with the customer?

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