Checklist for Starting a Company
Things to Do Before Starting a Company.
Starting a company is the dream of many. If you are reading this article, I believe that you are among the people that are considering starting a company either now or in the near future.
This desire is laudable indeed but you don’t need to rush into it. If you rush into starting a company, you may soon discover that you did not do your homework properly. Starting a company requires that you do some ground work that will help you lay a good foundation for your company. Therefore, if you are thinking about starting a company or you are already starting a company of yours, the checklist below will help you.
Steps to take if you want to start a business
Decide on the business to do
You need to sit down and think about the business that is right for you. Don’t just go into business because you see other people starting a company. Think about all what you are good at. This will help you come up with different business opportunities. If you don’t have a specific business ideas in mind, our list of small business ideas that you can start with low capital investment will help you. Your choice of business should be the one that will give you fulfilment. Business is not about profits. Evaluate your strengths and weaknesses. If you are starting a company, it is always good to go into the business that matches your strengths.
Read Also: How to Choose the Right Small Business Idea
Test your product or service in the market
I want to believe that you are starting a company because you want to solve a specific problem. The essence of starting a company is to provide solution to problems your target customers are facing. You need to test the market to ensure that the product or service meets the customers’ needs and expectations. What is the market size? How much are customers willing to pay for your product or service? Is the market growing, saturated or declining? Starting a company in a saturated or declining market may not be a good idea.
Develop a business plan
Some people think that business plan is not necessary. Others have the opinion that you only need business plan if you are seeking funds. Business plan is very important as it will provide a roadmap to success for your business.
Research your competition
Who are your competitors? What resources do they have? What are the advantages they have over you? What advantage do you have over the competitors? What are their limitations? Can you leverage on the limitations to promote your business? What are their pricing strategies?
Develop your skills
If you are starting a company, you need to identify the skills you require to run the business profitably. You need to develop the skills that you are lacking. Working for someone may be a good way to learn the basics of your business. You also need to understand the basics of accounting. This is one of the essential skills every entrepreneur should possess.
Setting the right price
You have to get your pricing right. If your price is too high, you will lose customers to your competitors. If you price cheaply, customer may doubt the quality of your product. Even, if they buy, you will also be losing money to customers. You should understand how to set a price that is appropriate for your product or service. The price should not be too high nor too low.
You need branding
Good branding will enhance the goodwill and worth of your business in customers’ eyes. Branding begins with choosing the right name for your business. Design a good logo and choose the right colour for your business. Determine your unique selling proposition.
Register your company
If you are starting a company, you need to register the name of the company. This is what makes it legal. Starting a company without proper registration is equal to running illegal business. The procedures for the registration will depend on the legal structure of your business and the legal requirements of your country
Source for funds
You need funds to purchase initial equipment and for the day to day running of the business. When you are starting a company, you need to explore all possible options available for raising funds. By the time you start your company properly, you will have doors to other sources of finance open to you.
Read Also: Funding Options for Small Businesses
Choose the right location
If location is critical to the type of business you want to do, then you have to choose your location wisely. There are many factors you need to consider before you finally choose your location. These include where the location of your customers, the cost of the rent etc
Acquire necessary tools and equipment.
In this information age, one of the equipment you need if you are starting a company is computer. It can either be a desktop or laptop depending on your preferences or circumstances. Other tools include printers, back up equipment and telephone etc. You also need tables and chairs and other fixtures and fittings.
Opening of the business
You are now ready to open the business having had all the necessary tools and equipment in place. You need to define your opening hour. You may not have a specific closing hour when you are just starting a company. Getting customers and attending to them should be your priority.
Market your products or services
You cannot sit down in the office and expect customers to start coming on their own. You should have a marketing plan that will help you create awareness about your business. Your marketing efforts should draw customers to your business. If not, you may need to review your marketing strategy.
Good Customer Service
Marketing will draw customers to your business. It is good customer service that will convert them to buying customers. Therefore, you should have good customer service in place
Read Also: How to Choose the Right Location for Your Business
Good accounting system
Starting a company without having a good accounting system in place is like digging the grave for the company. If you need to hire someone to do this, please do. Good bookkeeping offers many benefits to business. If you cannot afford to hire a full time staff, you can outsource the function.
I do hope that this checklist of starting a company will help you in your journey into entrepreneurship.