24/03/2020
JAMII BUSINESS EDUCATION DESK
PART 3:C: Business Establishment Requirements
Having Generated your Business project Idea you are definately compelled to consider for requirements to set up a business e.g shop,bee keeping farm,Mobile money services ,salon ,Fish farming,Aluminium Works and so forth.
The fundamental requirements are;
1.Resources means inputs necesary to render the business operational normally they are committed to various business activities.(such Finance,peope, time and Area)
Finance-This is a financial Resource regarded as an initial financial capital(Money) highly required to establish a business project.Due to economic constraints most of us lack money to set aside as business project financing Arrengament.And sometimes we mostly lack financial management skills specifically to raise financial resources and properly invest them into profitable business undertakings. Financial resources can be obtained from the following practical sources;
i) Income from employement,plot hire or
sale or asset disposal.
ii) Loan from Banks,lenders,Community
Financial Groups,SACCOS,Friend/
family ,Government Agency,e.t.c
iii) Payments from Insurance
schemes,work compensation,land
takeover,Pension,lottery and so forth.
iv) Gifts in form of money or wealth from
dear ones or close friends or partners.
v)Assets Distribution from Probate.
vi)Seed Capital from Business support
Organizations.
Note:Based on your generated business idea identify three finance sources and select one possible source for financing your ideal business.Again estimate the capital amount needed.
• People-Technically referred as human capital.Any business needs human labour to run project activities.Deployment of human skills.these include project owner and project staff and stakeholders (such as consultants and suplpliers).The nature and scope of the project will determine the human skills and qualifications needed.For example a Small Poultry Farm Project will directly need Project Manager (Owner) and Project attendant.
Note:Consider number of project staff and their skills you will need to hire in your tentative project business.Also how much will you pay each one per month or term.
• Project Area-Project Businesses do not operate in the air or rather in a vacuum.Any business project must have a specific place of operations in other words an Office with defined geography.The project office can be owned room by project owner or rented room to support smooth business operations.Business project area must be costed even if owned by prospective project owner.
Business area
must:Accessible,secured conspicuous
and free from conflicts.
Note:Ask yourself if you will use your
own area or hire one.Make sure you
decide best business area for costing.
• Time-Time is money.Time is a valuable resource in project business.Project Idea owner must have time to undertake project activities.Time must be properly managed.Timeliness in any activity is an upmost phenomenon.supervision, Reviews and evalutaion of business activities need to be done timely to render desired business outcomes.
Most business projects fail simply because the owners have no time to manage and supervise them.
Note:Will you have time to run and manage your ideal business?.will you properly utilize time available to render expected project outcomes?Ask yourself and give answer!
• Equipments or working tools
To run business operations working
tools are inevitable.These are
necessary and assistive equipments to
carry project activities.for example to
run a bee keeping farm,one needs
beekeeping equipments such as
beehives,Queen Excluder,bee
suit,beekeeping kit and so forth.
Note:list all necessary working tools you will need in your selected ideal business.