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Establishing a business

Simple Alliance, Kenya Limited

Establishing a business is an aspect that may affect all facets of your life either positively or negatively depending on the way you go about it and covers a wide area of your life. It is therefore important that while working on this you consider the broader aspects of life to ensure that all you do will not affect any aspect of your life negatively. Through a step by step process you may find the best considerations to make when establishing the business.

Determine your life plan

Your life plan is important to consider when establishing your business, it covers aspects of your current status, your ideal life, your likes and dislikes and achievements and capabilities among other things.  in using your life plan during the establishment of a business it helps you prioritize what is important to you and guides you through the values you hold dear. It also helps you evaluate your successes in the business in later stages.

Adopt a working business model

Deciding on the business model to adopt is a key aspect of establishing a business. As a business owner you should ensure that you choose a business model that perfectly fits into your life plan. A contradicting business model would cause neglect in terms of time and determination put either into the business or other aspects of your life. In this case you first have to decide whether you prefer a part-time or full-time business after which you choose from the many other business models that exist which include; Home-based, e-Commerce, Franchising, or Multi-level marketing.

Have a realistic business plan

The centrality of a business plan during the start-up of a business cannot be ignored. This document in addition to giving you a foresight of the operations in your business it provides priorities, context and the sanity that you need as you start up a business. The business plan should be realistic as at some point you may be required to be accountable to all the statements, statistics and facts that lie in it. This tool helps you generate interest from financiers, prospective employees and strategic partners.

Get a right business structure

Business structures just as business models seen above are not universally right for all the businesses that exist in the market. There are some that may work perfectly to suit your business needs while some will only bring to you detriment. It is therefore important that you work towards understanding the various options there are in the form of business structures and evaluate the advantages and disadvantages that lie under each carefully paying attention to tax implications and government formalities.

Establish and protect your key assets

It is important that while establishing your business you should establish the key assets you have and work on protecting them. This may include your business name and even the logo that you may have created to avoid a case of them being used by someone else hence killing the hard work you have done. This is especially true when it comes to intellectual properties.

Find appropriate funding

Funding of any business during start-up is a critical aspect yet very tricky. While it is evident that there is no way a business can be set up without funds, you as the business owner cannot jump onto any funds that come your way. You need to be smart and selective while seeking money for your business to avoid turning your dream business into a nightmare. Your long term personal and business goals and the type of business you intend to launch should help you determine the right kind of financing for the business among the many that exist; Bootstrapping, Debt Financing, Grants, Friends and Family, Angel Investors, Factoring, Venture Capitalists.

Work on logistics

Logistics play a great role in ensuring the success or failure of a business despite the fact that they may not be the best of things to handle during the start-up stage of a business. At this stage you should ensure that all your books are in order and all contracts have been well worked out. The money you have should be well covered and all the downsides worked on. This will call for the inclusion of professionals from the various fields such as accountants, lawyers, bankers and insurance agents. The element of trust is very important in this and hence these must be people you can trust, referrals from friends are therefore the best when handling this.

Employ stars

Considering the fact that you intend to start a small business, the effectiveness and efficiency of each member is important and hence the need to ensure that everyone you bring on board is at the top of what is expected of them. Define what levels you would like to reach under every role in the business then go out to find the desired people. In addition put emphasis on understanding the power that people have, finding the right people, working to maintain the right people and the importance of having a mentor for your business.

Establish a brand

The perceptions held by the people about your business have great impact for the business both during start-up and later as the business grow. It is therefore important to create a brand that speaks positively about your business and this does not mean having a certain name, logo or colour for your organisation. A brand reduces a buyer’s perception of risk and makes purchasing decisions easy. You should ensure that your brand communicates consistently about what your company does its distinct attributes, image and personality. This should work to set you apart from your competition.

Market your business

After doing all the above it now comes a time when you have to sell your business out there through marketing.  You first have to identify those who are your target audiences and then communicate with them messages that touch on them so as to appeal to them. Maintain a consistent message in marketing and reinforce the sent out messages to build on your brand identity and give your customers a reason why they should come to your business.

Copyright (C) 2016, Simple Alliance Kenya Limited

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