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How To Become Business Owner And Make Money
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By olajide oyerinde
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How To Become Business Owner And Make Money
How To Become A Business Owner And Make Money
So you want to become a business owner? Congratulations! You're actually walking your way to become an entrepreneur. Yes,thinking of becoming a business is the easy part.The hard part is figuring out what to do next.There are infinite numbers of paths for you to choose from to start a business but the essential thing is to look critically around your environment and identify a need that has the potential to guarantee your making a reasonable profit after all expenses into filling the need.
Thus, the following are some of the crucial ingredients you should put in mind before even embarking on the route of becoming a business owner and managing the business to fruitfulness.
1. IDEA
You must have a sound business idea that will meet the need of large percentage of your targeted customers at a competitive price that will guarantee you making reasonable profit.
2. PLANNING
There is an adage that "those who fail to plan,plan to fail".Therefore,the place for planning in any business cannot be overemphasized. A potential business owner must therefore put in place a business plan that will spell out the initial capital needed for the business undertaking,the income and expenditure statement analysis,the marketing analysis,staffing,management,registration office space etc.
3. CAPITAL
For you to jump-start any business,you will definitely need capital,no matter how small it may be to enable you implement your business effectively.
SOURCES OF CAPITAL TO PROSPECTIVE BUSINESS OWNER
The following are some of the sources of capital available to a prospective business owner.They include:
(A). PERSONAL SAVINGS:
This is where you save money from your paid employment or from businesses you have done for the purpose of setting up your own business.
(B). FRIENDS/RELATIVES:
Your friends or relatives who believe in your business idea can assist you to finance your business.Usually,capital from this source attracts little or no interest.
(C). BANKS:
Getting investment capital from conventional banks for a beginning business business owner is a very difficult task unless you have a collateral as a back-up for the loan to serve as an instrument to recover the money in case you are unable to repay the loan.
(D).VENTURE CAPITALIST:
This source provides capital if the business profit is juicy and it has good potentials for future growth.
(E).MICRO-FINANCE BANK:
This source serves as an alternative source to small/medium scale prospective business owners to seek for finance to start-up their business ideas but there are conditions you have to meet to facilitate your getting the loans,such as having a guarantor and using part of the proceeds from the loan as a deposit with the bank.
(F). GOVERNMENT AGENCIES:
There are government agencies that grant facilities to prospective business owners.Getting loans from this source requires contacts in most cases and some elements of luck on the part of the seeker.The interest rate is usually friendly.
(G) NON-GOVERNMENTAL ORGANISATIONS (NGO):
Some NGO's grant loans to assist prospective business owners with good business ideas and plans to implement them.
(H) BUSINESS ANGELS:
These are networth individuals who are looking for good business ideas to finance with their capital.However,their interest is always located at the profit and future potentials of the business.
So you want to become a business owner? Congratulations! You're actually walking your way to become an entrepreneur. Yes,thinking of becoming a business is the easy part.The hard part is figuring out what to do next.There are infinite numbers of paths for you to choose from to start a business but the essential thing is to look critically around your environment and identify a need that has the potential to guarantee your making a reasonable profit after all expenses into filling the need.
Thus, the following are some of the crucial ingredients you should put in mind before even embarking on the route of becoming a business owner and managing the business to fruitfulness.
1. IDEA
You must have a sound business idea that will meet the need of large percentage of your targeted customers at a competitive price that will guarantee you making reasonable profit.
2. PLANNING
There is an adage that "those who fail to plan,plan to fail".Therefore,the place for planning in any business cannot be overemphasized. A potential business owner must therefore put in place a business plan that will spell out the initial capital needed for the business undertaking,the income and expenditure statement analysis,the marketing analysis,staffing,management,registration office space etc.
3. CAPITAL
For you to jump-start any business,you will definitely need capital,no matter how small it may be to enable you implement your business effectively.
SOURCES OF CAPITAL TO PROSPECTIVE BUSINESS OWNER
The following are some of the sources of capital available to a prospective business owner.They include:
This is where you save money from your paid employment or from businesses you have done for the purpose of setting up your own business.
(B). FRIENDS/RELATIVES:
Your friends or relatives who believe in your business idea can assist you to finance your business.Usually,capital from this source attracts little or no interest.
(C). BANKS:
Getting investment capital from conventional banks for a beginning business business owner is a very difficult task unless you have a collateral as a back-up for the loan to serve as an instrument to recover the money in case you are unable to repay the loan.
(D).VENTURE CAPITALIST:
This source provides capital if the business profit is juicy and it has good potentials for future growth.
(E).MICRO-FINANCE BANK:
This source serves as an alternative source to small/medium scale prospective business owners to seek for finance to start-up their business ideas but there are conditions you have to meet to facilitate your getting the loans,such as having a guarantor and using part of the proceeds from the loan as a deposit with the bank.
(F). GOVERNMENT AGENCIES:
There are government agencies that grant facilities to prospective business owners.Getting loans from this source requires contacts in most cases and some elements of luck on the part of the seeker.The interest rate is usually friendly.
(G) NON-GOVERNMENTAL ORGANISATIONS (NGO):
Some NGO's grant loans to assist prospective business owners with good business ideas and plans to implement them.
(H) BUSINESS ANGELS:
These are networth individuals who are looking for good business ideas to finance with their capital.However,their interest is always located at the profit and future potentials of the business.
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