SME Business start-up: Mistakes you shouldn’t make when opening business!

SME Business start-up: Mistakes you shouldn’t make when opening business! Do you want to kick-start a business?  Here are mistakes you shouldn’t make when opening your business. We have in previous posts presented several contents like Consultancy and How, Types of consultancy services, How to get help from consultants, Consultancy service. Get to them by clicking here for more updates. Then follow us as we discuss these mistakes to avoid.

SME Business start-up: Mistakes you shouldn’t make when opening business!

Lack of planning

The main problem that first-time entrepreneurs face is the lack of planning. It is a very broad question, which encompasses practically all aspects of the company. Anyone in charge of a business needs to know who its target audience is and what they will do to reach it. This should be one of the first goals of those who want to become an entrepreneur.

For example: at what point to put a self-service restaurant? What kind of advertising to used to reach an ideal audience? How not be dependent on just one supplier? These are some examples of questions that should be asked in the initial phase of opening a business.

SME Business start-up: Mistakes you shouldn’t make when opening business!

Corporate financial planning is also important because it is what will define how much fund you will need.  This is to cover the initial investment and monthly expenses, staff costs and suppliers and the expected profit margin.  Notwithstanding, at this point, it is important to note that almost all companies, even successful ones, take a few years to start being profitable.

With financial planning in hand, management takes place without improvisation or setbacks. You just have to follow your plan, adjusting it when necessary, in order to use the money intelligently and take note of each transaction. SME Business start-up: Mistakes you shouldn’t make when opening business!

Credit with very high-interest rates:

In the business world, from the owner of a small bakery to the great businessman Donald Trump, they know one truth: it is almost impossible to open a company without credit. With it, the entrepreneur will be able to make the initial investments, buy the first inputs, and have a cash flow before the business generates real profits. It is also the credit that allows the entrepreneur to leverage the business.

Today, it is much easier to obtain credit than ten, or fifteen years ago. However, care is needed. Very high-interest rates and very expensive installments can become snowballs impossible to pay in the future, even if the company is successful. You need to research the best rates and borrow only what is necessary.

Bureaucracy: SME Business start-up: Mistakes you shouldn’t make when opening business!

Opening a company in Nigeria takes, on average, 15 working days. It is one of the longest processes in the world! Tax bureaucracy alone consumes several hours per year, on average, according to a World Bank survey. These figures show a truth that is in the mouth of the people: Nigeria is an extremely bureaucratic country.

Data like these put  Nigeria in the ranking that assesses the ease of doing business. Unfortunately, there is no use complaining. In order to have a successful company, the entrepreneur needs to learn how to circumvent these problems. Knowing what are the taxes to be paid, the deadlines for issuing permits, and which certificates are necessary for your business to work are indispensable prerequisites. Look for an accountant to help you with all the necessary documentation so that the process does not take too long.

Extra administration tips when starting your business:

Don’t lose control of working capital

One of the biggest villains that bankrupt small and medium-sized companies is the lack of working capital. This is the reserve that ensures that activities continue at more critical moments. And that works even when the company has shown a profit. This is because the billing is always variable and it may be that the next few months are not as full as the last ones. Thus, this money must always be monitored and well-managed. SME Business start-up: Mistakes you shouldn’t make when opening business!

Cash Flow Focus

Another point that should be given special attention is the company’s cash flow, as it is through it that you get to know how much money comes in and out of the total transactions.

Knowing your cash flow well, it is possible to know where the company’s balance point is and, thus, to know how to better manage your accounts payable and receivable. For that,  charging customers who are in debt and asking for more terms or favorable conditions for suppliers.

SME Business start-up: Mistakes you shouldn’t make when opening business!

Beware of stock

Many people see the stock of products as a cost, but it should be seen as an investment. It is the company’s money converted into goods and needs different treatment to avoid generating unnecessary expenses.

When managing this investment, it is important to know what your market demand is, without being too pessimistic or over-optimistic. In addition, a safety margin is required in the event of an unexpected growth in demand. This is for SME Business start-ups: Mistakes you shouldn’t make when opening business!

Administer with the help of an online system

Managing by gathering paperwork or Excel spreadsheets is not practical and prone to errors. In this way, a valuable management tip is to use your own software for this. It can be accessed from anywhere, with information stored in the cloud and constantly updated in an integrated manner. Thus, the numbers are correct and help to make things easier. SME Business start-up: Mistakes you shouldn’t make when opening business!

Summing Up – SME Business start-up: Mistakes you shouldn’t make when opening business!

When it comes to opening a company. It is not uncommon to hear that Nigeria is one of the most bureaucratic countries in the world. The finding, unfortunately, is true. The process, is currently burdened by numerous documentary and registration requirements. Is almost 6 times slower than in other G20 countries. Even with all these obstacles, Nigerians is still one of the most entrepreneurial peoples in the world. This is for SME Business start-ups: Mistakes you shouldn’t make when opening business!

In fact, it’s for this reason that we decided to give a helping hand to readers. Those who intend to be part of the entrepreneurial slice of the country, elaborating, in this post, a step-by-step for you to register your company. But be careful: many people confuse the registration of trademarks and patents with the registration of a company. Registering a company is not patenting. Finally, Contact us though; [email protected] , 09053130518 (office time). Thanks for reading through SME Business start-up: Mistakes you shouldn’t make when opening business!