As exciting as starting a business sounds, it can be a daunting and horrible road/experience if an entrepreneur fails to plan well.

You have a great idea and want to introduce a start-up, there are probably a few questions you need answers to.

The following points emphasize most questions asked by business starters and owners, and provides answers to each of them.

1. How much capital do I need to start a business?

   As cliché as this sounds, you are the main person to provide an answer to this. However, here’s a simple guide. Depending on the kind of business you desire to start, you should have a list of the expenditure and expenses you would incur in starting this business, and also include how much it would cost to run it over a certain period. Be open and realistic.

   An article was recently published stating 30 lucrative businesses that a person could start with ₦100,000 or less. Now, if you’re going to start an Small or Medium Enterprise (SME), and one which would require incorporation, employees fees, administrative and legal costs, you may have to consider these in your calculation before you take the plunge.

2. How do I validate my business idea?

   Having an idea is great, and so is planning a startup with it. However, validating this idea is better. Validation assesses that a business will have a sustainable, growing market in a given time. It lays a good foundation for growth and attracting customers.

   There are several successful businesses which run on similar ideas. These are able to scale up regardless, because of how they differentiate themselves, the value they bring and the quality of their products or services.

   A way to assess your business idea is to question the importance of the idea. What problem is your idea solving? Who needs the services your idea will bring? Are they willing to pay for it, and how large is the market? Who are your potential competitors?

   Take a look through google or social media, learn about businesses with the idea you have. Get information about them, their successes and losses. Measure your idea and plan against this, but putting into consideration how far these other businesses have come.

   Another very important method of validation is to ask people including your target market and successful people in the business area. As part of your research, conduct a survey and ask questions. Discuss your idea with random people and seek their opinion and feedback.

   Your idea is not validated until people are willing to invest some resources to demonstrate their interest - Natasha Che (Founder of Soundwise).

3. How can I attract more customers?

   Take a product and service analysis to know where you have to improve - customer service, cost of products, quality of products, delivery services, etc. It is important to do this monthly. Assess your Key Performance Indicators (KPIs) - goals, achievements, losses.

   Maintain an excellent customer service and support system. Please your customers and watch them promote your business for you. There is no easier way to grow your customer base than providing value, and then having customers promote brand for you - Steven MacDonald, Author -Superoffice.com

   Remember to update your website and social media page regularly. Use digital marketing to increase your reach and advertise your brand. Give information about your products consistently, and when you can, offer discounts.

   Grow and expand your network. Attend networking events, form alliances and partnerships. Leverage on these to attract more customers.

4. How do I incorporate my business?

   The body in charge of the business incorporation and regulation in Nigeria is the Corporate Affairs Commission (CAC). Incorporating a business is always a wise decision as this render the company, a legal entity, thereby, protecting the owner from any liability as pertains to the business/company.

   It requires the following:

   • A unique name for the company. It is advised to do a search online. This can be done freely on the CAC website to confirm that the proposed name is available.
   • Identification and details of the owner and shareholders of the company.
   • Memorandum and Article of Association (MEMART).
   • Identification and details of the directors of the company.
   • Statement of compliance, signed by a legal practitioner.

   Business incorporation in Nigeria can be done easily with the help of legal services and online legal platforms such as LegitNg, LawPadi, Strand Sahara, etc. The CAC has a fixed charge rate for incorporation, depending on the kind of company. For instance, a ₦10,000 charge is for a private company with share capital of one million naira or less. (www.cac.gov.ng)

5. How can I get funds for my business?

   There are several routes to gain access to funds for your business. These include low interest loans for microfinance banks, local and international organisations which source and cater to SMEs.

   As mentioned earlier, networking and partnering with an entrepreneur in your niche is a great idea not just to increase customers, but also to pool resources and save cost.