1. If you have a job, don't quit.
You can use your current salary to start up the business. Find out what prospective customers think of your idea and whether there is a market for your product.
2. Draft a business plan and stick to it:
Start working on a business plan as soon as your ideas begin to come together. Develop this plan as your ideas change. It's important to have a business plan as this determines how your business will make money, it describes your target market, how you will reach that target market and when do you expect to make a profit. This makes it easier for your business to reach it's goal.
3. Handle all the admin work
By admin we mean attending to all the regulatory requirements early, such as registration, tax clearance, bank account, so that you don't waste valuable selling time once your business is launched.
4. Get your business system in order:
We all aniticipate launching our business and having a big party to showcase what our business can offer and why people should know about it, however don't launch before you have systems in place for things like record-keeping, invoicing, bookkeeping and customer care. These will keep your business running while you focus on growing your client base.
5.Build up sales before you launch:
Ideally, get a few regular customers before you go into the business full-time, to build up a customer base. This will eventually help with getting more customers and growing your business.
6. Get some suppliers on your side:
Most businesses requires suppliers to operate such as computers, printers, stock etc. See whether your suppliers will give you a few months in which to pay while you are starting up. This way, you don't have to get loans to buy supplies.
7.Start gradually:
There may be certain products or services that sell better than others, with less infrastructure and capital outlay. Start with these and get the cash flowing. There are a number of ways of getting funding such as borrowing money from family and friends.
There are a few things that you must always keep in mind:
DON'T be too relaxed about financial agreements.
DON'T ignore the possibility of failure.
DON'T ask for more than you can afford.
DO keep them regularly updated.
DO be open to their advice.
DO consider being mentored.
Always have a plan of action.
References: Bizconnect.
By Nhlanhla Molepo
Twitter: nhlanhlamolepo
Facebook: Nhlanhla Molepo
