Steps to Starting Your Own Business II

Step 2: Locating your base of operations/office space.

After registering your business name or obtaining an RC number (as the case may be) with the Corporate Affairs Commission, it is important you decipher where exactly you want to operate from.

This is quite a tricky question, but is very important as you will even be required to give this information while filing for a company name (although most people use their residential address at this stage).

Always bear in mind that the easiest thing for a company to do is to relocate. This is much easier to do than renaming or rebranding. Therefore, where you start your business is not cast in stone or some kind of superstitious forecast of things to come.

Factors to consider when deciding a business location are;

• Funding

• Product or service offering

• Industry

Funding

When is cash never a factor? “Money answereth all things” as the saying goes. Surprisingly, I am happy to conclude from my experience starting up businesses of my own (some of which failed) and specializing in consulting for startups, that enough or surplus money at the beginning, can do more harm than good; especially if you are a rookie business owner.

Amateurs and the ill-advised tend to spend money on frivolities and over employ, instead of beefing up the product/service and investing more in marketing, while keeping the surplus in escrow for a rainy day.

So, inadequate or even lack of funds can actually be a good thing. It helps you focus and prioritize. You are forced to adhere to a strict budget and put first things first.

Do you really need that fancy desk? Do you have to buy a 2HP air conditioner? Does your receptionist have to be a hot looking graduate from a private University? Is that luxurious packaging improving or impeding your bottom line?

There’s no place like home. You can always start your business from home. It’s the fastest, cheapest and easiest way to start.

Product or service

Are you offering a product that can be delivered; like makeup sales or a service like a makeup artist? It is easier to start a business from home selling makeup. You can always warehouse the merchandise in your house, and deliver or have people drop by for a few minutes to make up their minds on a purchase.

However, if you are offering the services of a makeup artist, you might be uncomfortable with people staying for long periods at a time or coming and going repeatedly and might want to meet your customers where they are, or have a home office in your building/compound (preferably with a separate entrance).

Industry

This is equally a crucial deciding factor. If like me, you offer business consulting services that require meeting clients, image is paramount. You won’t be comfortable with clients coming into your compound only to dodge the game of football being played by your neighbor’s kids.

In that case, apart from considering a home office (as earlier explained), you might want to meet your clients’ at an eatery. If you have suspicious clients (believe me, they are the bane of my existence), it just might be the best time to “start small” and invest in a one room BQ in any of the GRAs of Lagos, or a quiet street/close off a major one.

Whether you run a business from your bedroom, home office, or a BQ in Ogudu GRA, remember that the most important things are what you offer, and how you offer them.