Starting a business involves planning, making key financial decisions and completing a series of legal activities. These 8 easy steps can help you plan, prepare and manage your business.
- Write a business plan
A business plan is a comprehensive document that will help you map out how you will start and run your business successfully. Plans always differ because of various industries and the nature of business you want to do.
- Get business assistance
Almost all African countries have institutions that offer free training on how to run a small business. They have empowerment drives. Take advantage of free training and counselling services, from preparing a business plan and securing financing, to expanding or relocating a business.
- Finance your business
In Africa most banks need collateral so chances of securing loans are limited. You should save where you work and leave when you think you ready to do your own things. In African countries where economies are a little bit stable, find government backed loans, venture capital and research grants to help you get started.
- Identify legal structure of your business
Decide which form of ownership is best for you and your colleagues if you have partners. Sole proprietorship, partnership, Limited Liability Company (LLC), corporation, S corporation, non-profit or cooperative. If possible, consult a business lawyer. Some structures are flexible in terms of future growth or partnership whereas with some business legal structures it will be difficult.
- Register for state and local taxes
Register with your state to obtain a tax identification number, workers’ compensation, unemployment and disability insurance. Registration does not make you legit only, it helps when you want to secure government contracts, in times of crisis and when calling for investors.
Author: Gesture Chidhanguro