Starting a business
INTRODUCTION
Advancements in technology have brought about unprecedented access to information, skills, talent and a lot more products and services than ever before. Each year, more and more people are starting their own businesses, setting their dreams in motion. This has created a more vibrant and competitive business environment.
Before you start
Before starting your own business, it is a good practice to thoroughly develop your idea, understand your motivation and weigh the pros and cons.
Running your own business
Do not underestimate the hard work involved in running your own business. As a business owner you will be required to take on multiple responsibilities: providing a service or producing a product, day to day administrative work, selling your idea to potential investors. You will have to endure long working, take more risks and handle the pressure that comes with running your own business.
Pros of running your own business
Opportunity to pursue your dream, greater control and independence plus flexibility to work around other commitments, work at your own pace.
Cons
Responsibility for failures, mistakes as well as successes. Working independently with less human interaction may bring on a sense of isolation. Strain on social life from working long hours. No income if you are sick or on holiday.
Working for pay
Although the daily grind of going to work at a company may weigh you down over the years, paid employment brings many benefits, whereas running your own business may be stressful and financially risky. Carefully weigh your options.
Pros of paid employment
Financial security from a monthly paycheck, sense of belonging from working with other people towards a common goal.
Cons of paid employment
Office politics are frustrating, commuting to and from work everyday takes a toll, lack of flexibility in work hours and conditions can be problematic.
Asses yourself
From the onset, running your own business will require a wide range of skills and abilities. Identify the skill and abilities you know you have and those that you could develop to help with the running of the business. Among friends and family identify those with skills that may benefit the business. Scrutinize yourself sufficiently to identify areas of weakness, and think of ways to overcome them. You will need to be confident that your interest is strong to see you through the duration of the business. Always remember that running a business is a long term commitment.
Strengths
Identify strengths you bring to the business, including:
Personal characteristics, such as temperament, determination, and creativity.
Academic abilities which include technical skills, language, and mathematical abilities.
Professional skills such as negotiating, managing people and clients, and budgeting.
Weaknesses
Identify aspects about yourself that could negatively affect the business.
These include:
Personal traits, including a lack of confidence, impulsiveness and general disorganization.
Inexperience and lack of knowledge, in areas such as managing accounts, hiring people and information technology.
Business Idea
You have to come up with a viable business plan that either solves a problem or improves an existing product or service. A business idea doesn't have to be new, but it must satisfy a need in order to succeed. Think about a problem you have encountered yourself, bad service, late delivery e.t.c. This experience may be a gap in the market that you could fill with your new business.
A viable business idea must:
Fill a gap in the market
Stand out from the rest
Innovate
Have a purpose
Operate in a growing market
Scalable
Market research
Markets are made of people with common demands, so learning what interests and concerns then is valuable information.
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