A STEP BY STEP GUIDE TO LEGALLY SET UP A BUSINESS VENTURE

Business is an art, and setting it up the right way will make your art rise and shine!
Here is an easy to understand guide for those who need some ideas setting up a business venture. Through, it's not a comprehensive guide for all companies and circumstances.

steps to start a small business

Do you have a great idea and want to set up a business venture? If yes, then follow the steps bellow. The first thing you need as an entrepreneur is advice from someone who is experienced in starting a business, someone professionally qualified to advise or mentor you during the crucial early stages of your business.

In setting up a business venture, have this two things at the back of your mind:
  • The high level of what you need to know, based on the experience of those who have been in the business themselves. 
  • Get advice from well-meaning business angels who help to fund and advise new and growing businesses.

How to setup a new business venture
  • Step one is therefore to get a mentor.
  • Prepare a business plan: Your business plan is key to deciding whether the business may be viable or not. If so, start using it to get your idea off the ground and get funding –to assess your business idea to work out if it could be a profitable business.
  • If you have done your market research and you can take your estimated sales income and cover your costs yet still maintain a market competitive price, and you know your first customer, you may well have a viable business idea.
  • Finding investors and sources of funding: When planning to set up a business, source of capital should be one of the major step in the mind of an entrepreneur.
Once you have moved into the startup and revenue stage and you are ready to seek further external equity funding, you might find it useful to speak to one or more business angels who come with the benefit of experience.

They will only invest in an enterprise they believe will grow and rise in value. Equity is usually the most appropriate type of funding for start-up and early stage business as funding is locked into the business, unlike a loan which may be called in if trading conditions deteriorate.

Getting started: here are some tips for starting out a business venture from those who have started up a successful business.

The stakes can be high, many have invested their savings in starting out so firstly reduce your risks. If you can, keep working in your existing job to maintain an income.

Setting up a separate business bank account will also make your life a lot easier in terms of clearly identifying business income and expenditure and for completing tax returns.

Start small – overtrading is the biggest cause of running out of cash and business failure.

A common example is having too high a level of stock; you might still be selling but there is too much cash tied up in stock and the income is not coming in fast enough to cover your costs. If this affects your ability to pay loan charges, a lender or creditor may start to get concerned and call in the debt or cease supplies.

Get the right staff and partners – do you need staff? This may influence where you locate your business.

How well do you know your business partner?

Find out from your local authority what licenses or permissions you may need to operate your business and build the timings and fees into your cash forecasts.

You may not be able to start trading and generating income without the appropriate licenses in place.

When are you likely to get the license and how long would it be to reapply if you do not meet all the criteria?

You may have written a fantastic business plan or have a legal requirements for starting a new business venture but there will still be many unforeseen events and changes so make sure you build in a contingency for this.

Keep your business plan dynamic to adapt to change.
Safe Milli

Safe Milli

Welcome to ComfortSkillz.com. I am Barnabas, A Student of Office Technology and Management at Federal Polytechnic Idah (FPI), Kogi State, Nigeria. The C.E.O. of comfortskillz blog.

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