Startups and business owners (SME entrepreneurs) make the error of starting businesses without putting in enough work to see the project rise from ground up or having a financial close (investor interest). Every business needs a solid framework that is able to see the project from conceptualization, all the way to development and then finally operationalization and acceleration. Below is a quick checklist for businesses owners; those who are yet to start and those who have started.
Having a periodic business operation audit is equal to having periodic medical checks as a test could possibly reveal an ailment, which in the long term could hurt and ultimately kill the business.
Business plan: This is the blueprint of the business. Just as an architecture and structural design is to building a house, so is a business plan to starting any business. A business plan is a comprehensive document that details the WHAT, WHY, HOW your business is going to run. An accurate written business plan includes your market analysis that shows you how ready, available and willing the targeted market is, a competitor’s analysis that gives a thorough overview of other players in the industry who might give you competition. This helps you create a Unique Selling Point (USP) that distinguishes you from your competitors, a sales strategy, and an HR analysis, amongst many others. Having a business plan is the first step to starting a business
Business proposal: Be it running a B2B or B2C, having initial capital or having plans to go investor hunting, there is need for one to have a business proposal. This document contains a summary of the business plan and highlights the benefits of the services/goods to the clients/customer. A business proposal also highlights the financial returns of the business.
Business profile: This is a confidence booster for your business. Think of it as a CV for your company or business. Most clients and customers/consumers would like to see whom a product or service is coming from, who they have serviced before, how long they have been in business and the name/face behind the business. This mostly is important when it comes to service provision but also, with sales of goods, customers/consumers are interested in reviews of the products from past users, the originality and durability of the goods they are presented with. A business profile should be crafted artistically as it is bound to attract or repel potential clients and customers
Financial modelling: Where is the money coming from? Where will be money be going to? Whom are we paying what? How much tax goes out of our revenue? How much is our operational expenditure? How do we maximize on profit and cut down on our cost of operation/production whiles maintaining our standards? Financial modelling is paramount to accessing the health of a business
Financial forecasting: We all go into businesses to grow and maximize profit. At the very early stages, you are supposed to be able to identify ways of growing revenue over the years (5years is standard). This is done during the business planning stage but translated into figures at the forecasting stage.
Once the aforementioned steps are completed and there is clear evidence of business growth and profit maximization over the stated period, confidence is boosted and the business owners, investors and customers will be comfortable enough to engage in their respected stages along the business value chain.
Running a business is not a joke. The right thing needs be done lest peoples monies and toil goes to waste.
Written by : EBENEZER MENSA
