6 Things To Consider When Setting Up A Business

Starting a business requires careful planning, making the right financial decisions, and getting the correct legal foundations in place as soon as possible. Join us in this article as we discuss the correct procedures for starting a sustainable business.

Conduct market research

You have an business idea that you are sure is going to work. Before you invest in idea, always do a market research. A market research will tell you if its viable to turn your idea into a successful business that brings you profit.

Gather information about your potential customers. There are also likely to be other established businesses already serving your potential customers. Study them too and learn their weak points. If possible, interview some of your potential customers to find out their grievances. Use that information to find a competitive advantage over the already established businesses in your target market.

Here are some of the points you should consider when doing market research:
en answer the following questions to get a good sense of your market:

  • Is there a demand for your product or service in your target market?
  • If there is demand, how big is the demand?
  • How far away are your customers from where your business will be situated?
  • How many established businesses are already serving your target consumers?
  • What is the main source of income of your target customers?

Choose a business structure wisely

When it comes to choosing your business structure, also remember that your business structure will determine:

  • how much in taxes you will pay.
  • your ability to raise capital
  • the paperwork you will handle
  • your personal liability in the business.

Here are some of the most common business structures:

Choose a business name that reflects your brand

Choose a business name that reflects the types of goods and services you offer. Once you choose your business, you should register it to protect it.

Draft the terms and conditions

Every business needs to have some good terms and conditions. Terms and conditions can get you out of some tricky situations. Either you are selling goods or selling services you must have terms and conditions that clearly define:
i. the goods and services you will be supplying, to avoid misinterpretations by the customer.

  • the payment terms, including how late and delayed payments will be dealt with.
  • ownership of any intellectual property rights.
  • the circumstances under that will invalidate the terms and conditions.

Choose a good insurance

Insurance is a necessity for any type of business. You should consider having at least:

  • employers liability insurance, if your business is going to have employees.
  • public liability insurance.
  • professional indemnity insurance.

Get a website

A website is a great way to promote your business, goods and services. If you are not a web developer yourself, then find a professional website developer to design your company’s website.

Choose the website domain name that reflects the your business brand.

Sydney Chako

Mathematics, Chemistry and Physics teacher at Sytech Learning Academy. From Junior Secondary School to Tertiary Level Engineering Mathematics and Engineering Science.

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