It is very common to find people who want to start a business and the first challenge they believe  they face is ‘capital’

 

That assumption is only partly correct. This is because capital, in their minds, signifies money, when, in fact, capital signifies more than money. Have you forgotten that manpower is also called human capital?

 

But this fixation on the money needs of start-ups is what makes them search for businesses they can start with a fixed sum in mind when they should have resolved some issues first.

 

There is more to starting a business than the financial demands.

 

As a matter of fact, the money demands of the start-up are not in the areas most new bees think it is.

 

Let’s share 3 considerations that, like the foundation of any solid structure, are essential for the success of any start-up.

 

I will liken them all as ‘capital’ so the message sinks 

 

Idea capital. What is the idea behind the business? What is the solution it brings? What is the brainwave that led to it? If you got the idea from content on a search engine, what further research have you done to gather more details about it? Which industry expert have you gone to read up on? You need information capital to start a business. Information about the market, the variables of the solution, the regulatory requirements, and licenses for it. So go add flesh to that idea before you venture out.

 

Manpower capital. This is a very important factor of production that you must not ignore. Do you have the personnel to do the work required to get the job done? It is quite ok to be starting out all alone on a lean budget. In that case, do you have the expertise to run through every business process Involved? Do you know the tech tools in your space even if you don’t know how to use them? How can you find one or two people to work for you either for free or for very little? It’s very important to know these things.

 

 Vision capital. Do you have a future for that business in mind or you’re just starting the business because everyone’s starting a business? Have you written down any thoughts on what will happen in the business in 3 years’ time? Your research would have shown you the future of the business. Probably new regulations are in the often or more tech is underway. Have you envisioned how you will get into this early on? You need to take an hour or two to sit down and create a short-term and long-term picture of that business in your mind so that you can document it and run with it. This will be used to draw up a business plan and some other documents.

 

So, imagine you had only money questions in your head and you went to see someone who could help you in that area. What do you think will happen if they asked you a question along these lines and you didn’t know how to answer? Would you get the help you so badly needed? 

 

Now you see that there’s more to starting a business than raising funds.

 

So go do your groundwork and increase your chances of getting the help you need with funding.