DRAW A TEMPLATE ON HOW TO START UP A BUSINESS
Setting up your own business can be an exciting time. Before you start, save yourself time and money by being aware of what’s involved in running a business.
Investing time into proper planning is key to turning your dreams into reality. Operating a small business is not just about working for yourself or working from home, it’s also about having the necessary management skills, industry expertise, technical skills, finance and of course a long-term vision to grow and succeed.
NAME OF THE BUSINESS
The name of the business is HYATTARCTIONS SYSTEM
Hyattractions system was established after the dissolution of VALLINKS INTEGRATED SERVICES in 2010. However by March 2011, Hyattractions system was posted live on the internet. It is located at choba campus. There are other business services and its surrounded by other ventures that does same operations, among them are joecrack concepts, Richie Technology, Setto Resources centre, Alpha computers, etc. but many people especially students took special interest in this firm because of its friendly atmosphere and quality services.
Hyattractions system as a firm is into several lines of business which include;
ONLINE DIVISION: This is the department responsible for all internet services ranging from online registration to student related services on campus.
ACADEMIC/RESEARCH WING: This is the department responsible for handling all academic and research works.
ONLINE SOCCER BETTING: This is the online soccer betting department that includes Forex trading, binary options, sales of E-book and promotion of Referrel links. It is currently seen as the biggest revenue earner for the firm.
OFFLINE DIVISION (CONSULTANCY): This is the offline department that is involve in a wide range of activities especially for the students and the academia.
PERSONNEL AND ORGANIZATION
It is managed by the owner Mr. Valentine Chidozie Uwakwe, though it is a one man business but it is well structured and has organizational processes. It has three computer operators, two internet operators, and a photocopier. this is shown diagrammatically below;
Hyattractions system employee/customer relationship is a good one. Both the director, manager and the entire staff co-operate as a family and this attract people to the business firm. It has lots of patronage but normally experience boom whenever sandwich and year one students are around.
WRITE ABOUT THE BUSINESS INCOME
Initial capital was raised from a $200 investment in Forex trading in 2010. By February 2011 a savings investment of N33, 000 was injected in the firm and by March 2011, Hyattractions system was posted live on the internet.
By December 2011, it started its offline business with the following capital.by February 2012, it enter into alliance with JOECRACK SYSTEM and improve on its capacity. Then by January 8th 2013, HYATTRACTIONS SYSTEM was born live as a full business entity on campus and started full operations to the general public.it started with the sum of N80, 000.
Starts up equipment were…
Shop rent……………………………………..N80, 000
Other accessories…………………………..N5, 000
In 2013, the firm created lots of potentials. It became well known to the general public. That year, it made a profit of N180, 345. 00 after annual expenses were deducted. In 2014, it recorded an all time profit of N840, 440.00. In 2015, the firm recorded a drop in revenue due to strike activities on campus. However this was corrected by revenue from transfer payments.
THE SITE FOR THE BUSINESS
The site for the business firm is located at choba shopping complex, choba, Portharcourt, Rivers state. It is a shopping complex where various other business firms are situated.
PROBLEMS AND CHALLENGES; AND HOW TO OVERCOME THE CHALLENGES.
Here are some common faced problems in business and their solutions.
Money is known to be one of the major causes of problems that can lead business to failure. For a new business, the biggest mistake is expecting instant profit. Young and eager entrepreneurs start up a business with little money, assuming they will earn big and then invest that money again in their business. It is significant to understand that you cannot get an instant profit at the start of your business. Experts advise not to expect much profit for at least two years. Always prepare for the worst case scenario. Before starting a business, ensure that you have enough money to sustain you at least up to two years. Start slowly and patiently.
The phrase ‘time is money’ holds true, especially for a business. It is essential for new businesses to manage their time wisely. Planning everything in advance and ensuring everything is done on time is very important for the prosperity of any business. Ensure the schedule you are making is achievable and stick to it. Give yourself enough time to perform a task with accuracy. Plan your future projects. Make adjustments accordingly. Utilize calendars and planners to make sure you don’t miss an appointment or a deadline. Spending time effectively can actually save you money and even earn you more revenue.
3. Lack of Knowledge/Skills
This is one of the top most mistakes made by entrepreneurs. It is important that you have ample knowledge about the industry you are entering, your competitors, your target market, current trends, advertising and marketing techniques as well as financial know-how. You must possess the skills needed to start up a new business. If you are not prepared, educate yourself. Do proper research, ask other business owners, read relevant books and websites. You may end up with a huge loss if you start your business without having the required knowledge and skills.
4. Information Overload
The only thing constant is change! This phrase is true as well as change is continuous and we witness it happening all around us. Today, information keeps changing. New facts and data keeps emerging and replacing old beliefs and trends. Due to this information overload, it gets difficult to find effective solutions. It becomes a challenge for a new business to sort through this data and come up with good decisions. However, one easy solution is to look for the authenticity of the data. Check its references, and the writer. Learn to use keywords to narrow a research topic. Start asking successful businessmen about their experiences. Learn from them.
5. Lack of Direction and Planning
This problem prevails because of not creating a thorough and detailed business plan. Many young entrepreneurs are so excited about setting up their very own business that they fail to prepare a proper business plan. It helps in focusing on the goal and mission of the business. It determines the financial situation of the business, the roadmap to follow, market research and analysis of the competition. A business plan is basically an investment to your business.
6. Working in the Business rather than Working on the Business
Usually entrepreneurs get so worked up with the paperwork, satisfying customers and doing all the necessary things in keeping the business running. They fail to fulfill some other equally crucial tasks. It is important that you take a day or even a few hours to analyze your business. Determine which area needs attention, do an inventory review, review cash flow of your business, review payrolls and employee benefits. It is also important to update your corporate minutes, your contracts and your agreements with stakeholders annually. Hold meetings with your managers and other employees to connect with them.
Unfortunately, there are many new startup companies that stick to the age old book rules. They don’t try to create an innovative culture, even majority of the big businesses struggle with innovation. People get accustomed to the work culture and they don’t think outside the box. Businessmen and employees stay away from change and resist whatever changes that take place in the company. The best thing to do is to be open to innovation. When bringing a change, ensure that all your employees are prepared for it. Discuss it with them in a meeting, tell them how important it is to be innovative, make them understand how beneficial it will be.
8. Trying to Do It Alone
Coping with everything alone is also one of the most common mistake new business owners make. They believe that they can manage everything and don’t need any advice or help form anyone. Initially, they do seem to be successful in this strategy as the cost is low since they handle everything. However, as the work starts growing gradually, the workload takes a toll on the new entrepreneur. Mistakes start being made and the quality of work starts decreasing. You may even start losing customers soon. This is why this strategy is not successful in the long run. Hiring two to three employees is more beneficial for a start up business. It is better to pay a small amount to your workers than lose double the amount in the future.
9. Getting Clients
For a new business, it is difficult to attract prospects and retain customers. With a small marketing and advertising budget, new entrepreneurs are unable to reach out to a wider audience. Potential customers are usually hesitant to going for a new business. They prefer going for companies that have experience and a large customer following. However, the good news is big companies charge more. There are many clients and customers who are looking for companies that provide cheaper, but good quality service. Providing excellent service to them will ensure that they remain your customers and even recommend you to others.
10. Poor Marketing
Apart from a detailed business plan, a marketing plan is also important for any business. Once you have a clear idea about your target market and your competition, you can allocate a budget for advertising and promoting your business and decide which medium to advertise through. You can also decide your product pricing through target market analysis. Make sure you that your pricing can be easily afforded by your target market and that your advertising effectively reaches them.
Shailer, G. The Irrelevance of Organisational Boundaries for Owner-managed Firms. Small Business Economics 5 September 1993: 229–237.
Small Business Administration. Summary of Size
Small Business Health Care Tax Credit for Small Employers. IRS.
Small Businesses joined by Facebook. Steve Kaplan. 2014. Retrieved 13 May 2014.
Healeas,S., Purdy,D. , Stanworth, C. ,Watson,A.2004. Franchising as small business growth strategy: A resource based view organisational development : International small business journal,22(6),pp 539-599
Longenecker, Justin G.; Carlos W. Moore; J. William Petty; Leslie E. Palich (2008). Small business management : launching and growing entrepreneurial ventures. (14th ed.). Cengage Learning. p. 768. ISBN 0-324-56972-6. OCLC 191487420.
“Small Business and Self-Employed One-Stop Resource”. Irs.gov. 2010-09-26. Retrieved 2015-09-26.
D. Walczak, G. Voss, New Possibilities of Supporting Polish SMEs within the Jeremie Initiative Managed by BGK, Mediterranean Journal of Social Sciences, Vol 4, No 9, p. 759.