Before setting up a business there are some few but most important things you have to consider to make it successful. There is no person who has a business and hoping the business to fail in a year or two. Everyone will be expecting the business to last longer and be successful.
But before a business is successful you must consider some major factors so as to get maximum profit. No way you can wake up and setup a booming business. You need to research and have a proper PLAN to aid you in setting the business.
A business plan helps you forecast how your business will look like in the future, it is a clear vision of the operation that you will do to your business and what your business will also bring to you.
Below are some factors which you should consider before starting your business;
A budget is an estimate of what your business will cost you before it’s set to run. Even if you will go for loans, borrowing from family members or maybe if you are planning to save before starting the business, you will know the actual amount of capital needed using this budget estimate. You should include all the expenses you will be going to incur.
This is an example of a good boutique business budget;
- Transport ( looking for your suppliers) – Ksh 10,000
- Remodeling of the business premise (cost of shelves, racks and carpenter) – Ksh 17,800.
- Rent for one year – Ksh 60,000.
- Business permit – Ksh 8,000.
- 30 hangers @20 – Ksh 600.
- Salaries for one year – Ksh 120,000.
- 35 young boys, children and men’s shoes @650 – Ksh 22,750.
- 50 young girls, children and ladies’ shoes @450 – Ksh 22,500.
- 60 trousers both for children, men and ladies @400 – Ksh 24,000.
- 43 children and ladies’ tops @300 – Ksh 12,900.
- 30 children and men’s shirts @350 – Ksh 10,500.
- 15 ties @150 – Ksh 2,250.
- 45 trench for ladies and blazers for men @500 – Ksh 22,500.
TOTAL = KSH 333,800
The budget above has given me a total estimate of KSH 333,800, if in any case I want to borrow money from a bank, my figure will be around that figure. Always remember to make a modest budget so as the remaining finance can cater for other emergencies that may arise.
I know it is awkward to open a shop or a business where a person can only see it when going to the bathroom. I mean a place where there are no or few people, a hidden place where people have to face difficulties to come and visit the shop.
Well did you know when you set up a business and put it in an open place where passers-by can easily see it, it will reduce the advertisement expenses?
Do a proper research on a good strategic place to set your business, probably on a busy pedestrian road, inside a mall, in a bus station where travelers can easily notice your goods and buy from there or maybe in a busy market.
Talking of a good strategic location does not only involve sales and customers, it also involves security for the business. Security is the paramount feature here, there is no need of having a large number of customers the whole day then burglar steal from the shop at night. Look for a good security place with proper lightning and near other shops and nearest to a police station.
Customer is always the king; always bring to customers products that put a smile at their face. A good example in demand is age. Skinny jeans and tight t-shirts will probably be a good fit to teenagers and young adults whereas older individuals will prefer a little baggy sweaters, baggy shirts and trousers because it looks decent on them.
Prices of commodities also affect the demand of the commodities, always know your customers and what they prefer and like most. Designed suits, pants, expensive designed sneakers, gold chains and necklaces will be a good catch to artists and most influential people because on average a middle class person cannot afford a $10,000 designed Gucci shoe to attend a red carpet event and discard it forever for another shoe brand of a higher value.
Season as a point is self-explanatory here; when it is rainy you should be selling warm clothes, sell umbrellas and jackets. Coffee makers should now increase coffee making capacity and when it comes to summer, you should be selling lighter t-shirts, vests and sunglasses.
Doing a market analysis involves a lot of work, exactly knowing your competitors but most importantly do a SWOT analysis. A SWOT analysis will help you know the strength, weakness, your opportunities in the market as follows below:
Strength is things that you can do on your part to the business and satisfy your customers. A good example of strength is you having the power to purchase stock for your customers to buy. It sounds bad when customers come to your shop but there is nothing they can buy.
A weakness is something you can’t do on your own to satisfy your customers and an example is building a tarmac road to your shop.
Opportunities are the good things the customers will be adding to your business and a good opportunity is having potential buyers to buy from your shop.
These are your competitors in the market; you should learn how to be smarter than them so as to make more sales than them. If you open a business and within a few months another person opens a business of the same kind, that is a very big threat.
You should always look for reliable suppliers, those that supply just in time and supply quality products at a cheaper price. Don’t rely on a specific supplier, you can try different suppliers and concentrate to the one who works well with you.
Physically go for the supplier as many online suppliers are “fake” suppliers they don’t exist and you can be conned all your money.
In conclusion a business does not only need finance, all the market research and good suppliers but also great team work, patience and great business minded individuals. Wishing you well as you follow these important points to start your business.
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