Today I will share with you important things to consider before starting a business. These things are a must for starting a legally accepted business and its prosperity.
NB: each factor is independent you may consider one or two which serve your best interests.
8 Things to Consider Before Starting a Business
The following are the top 8 things to consider before starting any business;
Nature of Business
This is an important thing to consider before starting a business.
Here you must ensure whether your business is simple or complex, can it be done by a single person or its need more personnel, can it be turned into a system or it can be done without a huge system, whether you want multinational business or not, which sector does your business fall? Is it agriculture, mining, or transportation?
It is generally advised that if your business is complex and will require huge a system in its operation, a company is the best choice for you, otherwise, partnership, joint venture, or sole trader will be sufficient.
Duration of Business
How Long You wish your business should last, 1 year, 5 years, or forever?
The company is suitable for the long-term business, the business having the vision or mission of growing big and bigger.
If you wish to conduct business in the short term you may go to a joint venture or partnership or you may remain sole trader.
Purpose of Business
Is your business for commercial purposes, charity, or otherwise? Companies are suitable for commercial purposes. If you have a charity purpose you may go for (Non-Governmental Organizations) NGOs. However, an NGO may be registered under the company laws.
Number of Members
The minimum number of people required to form a company is 2 in the case of private companies and 7 in the case of public companies while a public company may have any number of members.
A private company cannot have more than 50 members.
After being sure of the factors above you may proceed to company formation processes.
Name of Business
This is a must crucial stage.
The name of your business must comply with the law.
In case you form a company, names of a private company must end with the word ‘Limited’ for example A and B Company Limited, and names of a public company must end with the word ‘Public Limited Company (PLC) example A and B PLC.
You cannot use an existing name of a registered business, your name must not be against public order or policies, it must not resemble any existing name to confuse the public, and it must not be relevant to any public organization or international organ.
Your name is a trademark. Make it simple and clear. Make it unique and easy to remember.
Place of Business
This is the home of your business. Before starting your business you must prepare its home.
A Business must have a registered postal and physical address. You may rent a space or use your home as the registered office of your business.
Objectives of Your Business
A business must have objectives. The objectives of the business may be specific, general, or both.
This is a motive behinds your business. Objectives show why you want to form a business. What your company will be doing. Don’t limit yourself your company can have as many objectives as you can.
Choose Your Partner(s) Carefully
Business is used to describe an association of several persons, formed for some common purpose, and registered according to the law.
Be careful of the people you wish to start a business with. You must consider mutual confidence, good faith, a sense of responsibility, and integrity when you choose your partner.
Choose a person you know better, who is voluntarily ready to work with you. You may choose your wife, children above the majority age, your close relative, or close friend to be co-directors.