How To Establish And Operate A Small Business

INTRODUCTION

Business is an activity of making money through buying and selling or supplying of goods or services. The purpose of Business is to generate income through profit.

A small Business or small scales industry could be defined as a small firm or organization established for the purpose of carrying on some economic activities which could be manufacturing or production, trading or rendering services.
A business could be small or big in size, it all depends on the nature of business and capital seed involved.

Why Business? The gate way to additional income

To enjoy financial independent, a man or society must not depend on a single income, getting involved in extra enterprises can solve a lot of worried often created as a result of shortage of cash. Owing business is for those who want to be rich and successful. There are so many business you can embark upon and run well. However, if it’s going to be, it’s up to you. A business of yours is the lasting solution against the fear of unemployment retrenchment or lack of funds.

However, to survive in business, you need guts, generous dose of ambition and drive. You must have a strong reason that will keep your business alive.

TAKING THE FIRST STEP

In deciding what type of business to do there are range of ideas to choose from to know whether its along existing hobby, talent on a new idea, however, ensure that there is a market that needs your service of product. Also, you must be personally interested in the business (not just because of the gain you hear people makes from it)

THINK FIRST: If you want to start a business, business is about thinking-well those who can not think can not create, therefore, if it is business you want to go into, think first. First thing first Develop your business first before building your house (Proverbs 24:27)

Therefore, I recommend that you belt yourself with these three instructions:

(i) Think deeply about the business
(ii) Open your eyes to see opportunities
(iii) Have an open-ear to hear business advantages
(iv) Above all, pray to God for wisdom and Guidance

Orji Kalu, the chairman of Slok group of companies says: “A good business man must have nose for business the same way a journalist has nose for news. The entire world is a big marked waiting for anybody who knows the rules of the game.”

In deciding to establish a business. Find a need around you and fill it; there after, money will flow into your bank account. There are infinite business possibilities where you are but in order to have access to them. You must exercise wisdom.

Since business is about the production of goods and services. Geared towards meeting people need. For financial regard, it follows therefore, that your business line must depend largely on three principal factors (i) people (ii) Environment (iii)

Season 1

Business Environment and the people

Business environment is not the same. It differs from place to place, and from people to people. To succeed in business you must study your environment and the people well enough. (Their taste. Needs, Values, tradition and culture). Do not start a business until you have located the market.

i People

ii Environment

iii Season

2

Season: Some business is seasonal while some are for all seasons. You must identify the difference. For instance, starting your ice block business in the rainy season is a bad strategy.

Baker’s complain of low sales whenever the season of fresh corn sets in (it is advisable that you embark on the feasibility study of your choice-business and prepare a business plan of action. Identifying resources needed for your venture )

1 Knowledge is power. Do not start a business until you have acquired the right knowledge read management books and journals

2 Master the required skill and training before going into production or manufacturing of any product, what you don’t know well can’t be produced better. Attend seminars workshop and vocational training centers. If possible have a business coach or consultant.

3 Locate your business at the right place

4 Capital is needed for the survived of any business. Ensure that you have adequate money to finance your business.

The following are sources of capital for business:

(1) personal savings
(2) Friends and relatives
(3) Leasing option
(4) Leans from banks (SME loans)
(5) self-help option
(6) Partnership
(7) Brain equity
(8) Money from other Business

“Any enterprise built by wise planning becomes strong through common sense, and profit wonderfully by keeping a breast of facts” \proverb 24:3-4

Conclusion

Without missing words, you need a business of your own additional streams of income. However nothing happens without an ACTION. ACT NOW.

Things to Know Before I Decide to Franchise My Business

Just have a look around the franchise industry and you will be amazed to find that most of the top franchise companies have humble beginnings. Many of the brands that are popular all over the world started as a small family business and through franchising have turned out to be popular. To franchise your business you need to have knowledge about how to franchise in the right manner to ensure success. Thus, if you dream of making your business big and successful, you can consider franchising your business.

There are many business owners who get confused as how to “franchise my business”. Well, before taking the decision to franchise your business, you need to go through a lot of preparations. It is not just a decision that can be implied within a day. Give some time to research and analyze the market before coming to a conclusion as how to franchise my business. Take help of a franchising consulting firm or some experts to help you make the right decision.

The very first thing that you need to understand is whether your business or company is good enough to undergo such a big a step. You can know if you can franchise your business if it possesses the following qualities:

Business Longevity: Franchise experts say that it is a good idea to franchise your business if it has been in operation for at least three consecutive years and generating profit. Also the size of your business should be good enough to attract other investors. Franchising will be successful only if the company possesses a proven track record of success.

Unique Business Concept: The competition in the franchising industry is quite high, so before deciding on how to franchise, make sure your business concept is unique and easy to duplicate. Organize your business system and concept before thinking of franchising it. Success in franchising industry is very much depended on how well investors are able to replicate your system and concept.

Profitable Business: Your business concept must have the ability to make money. Your business must have a consistent record of financial success so that investors can show their trust in your franchise business. Ultimately, it is the motive of everyone to earn and make money. If your business is profitable, it is just the right time to franchise your business.

Affordable Business Format: Most of the investors look at the initial investment while searching for the right franchise business opportunity. If the initial investment is very high then very limited people will be interested in buying your franchise. Along with cost of the franchise, investors also inquire about the return on investment. If your business format can promise high ROI, many will be interested in your business concept.

Marketability Factor: Before you franchise your business, make sure your business idea is easily marketable. Many companies franchise their business when many investors are asking them to franchise their business. This ensures that the business concept is very unique and that is the reason why potential business partners are ready to invest.

To conclude, if your business has that above mentioned qualities or attributes, you can plan ahead to franchise your business.

Core Small Business Skills – Operational Management

As a business owner and entrepreneur it is important to develop a set of key management skills upon which you can build your business. Even more so when you consider research into Australian small business failures, has identified that in 90% of cases, a lack of management skills has been a key reason for small business failure. Operational Management skills have been identified as one of the core skills required for small business success, and I would go so far as to say that they could be a deal breaker. So let’s look at the operational management skills you need to run a successful small business.

You need to build operational management skills in order to develop the systems and processes by which you deliver your products and services. The more efficient and effective they are the more ‘productive’ your business will be. Core operational skills include planning, management, communication as well as effective systems design.

Operational and Project Planning Skills

The ability to develop operational plans which focus on the day-to-day running of your small business and to develop and manage project plans for specific bodies of work are essential skills for business success. The best operational and project managers ensure that have identified,in as much detail as possible, what is required when and allocating appropriate resources to get the job done. They are also fanatical about identifying risks and issues upfront and managing them so that they have little or no impact on the task at hand.

Monitoring and Reporting Skills

Small business owners need to be able to assess their small business’s performance against its objectives and to develop and distribute a series of reports that indicate the level of that performance to key stakeholders on a weekly basis. Keeping an eye on your progress highlights any emerging issues and allows you to effectively manage the situation. This ensures that the reins of business are always in your hands and in your control. You need to be able to create a set of operational key performance indicators (KPI’s) that drive the behaviours and values you want your business to embody, create a set of operational performance ‘dashboards’ and develop a system that captures the information that feeds into the operational dashboard.

Effective Business Communications Skills

Strong communication skills are vital. In many respects, it is the oil that keeps your systems’ gears meshing nicely. You need to be able to inspire your troops to act in concert with your strategic intent, whilst delivering the communication to the troops about what needs to be done, when, where and why in an effort to keep your operations running like a well oiled machine. Strong written, verbal and non-verbal communication can be the difference that can take your small business from good to great.

Systems Design, Development and Implementation Skills

Every entrepreneur should be aiming to build an effective small business that operates without them. After all, most entrepreneurs build their business with the hopes of working only when they want to, not because they have to! The only way this can be done is to design, develop and implement systems that replace the business owner. Systems design requires the ability to observe, analyse and design solutions to systems problems. Having the ability to design systems is vital throughout the life of the business because all successful businesses will be in a constant state of re-design in order to keep abreast of the ever-changing demands of your customers and the context within which your business operates.

Developing strong Operational Management skills are essential to the day-to-day running of your business. Continuing to hone them is important as these particular skills will be required throughout the entire business life cycle, but the effort you put into developing these skills will pay handsome dividends when it comes to your day-to-day small business success.

Karen L. Paiyo is an Australian Small Business Counsellor, supporting and nurturing the spirit of entrepreneurship in the Asia Pacific Region. Karen empowers small business owners by transferring to them the skills and expertise needed to help them take their business ideas from creative concept to profitable reality, faster and with less risk.