Top Ten Tips when thinking of starting your own business

Starting your own business could be the key to financial freedom and there are fundamentals to be followed in order to start and run a successful business.

‘if there is no career progression, remaining an employee in a dead-end job could mean that you will operate in the vicious circle of poverty in which you are given a salary that is just about adequate to cater for your day-to-day living costs’, points out Robert Kiyasoki in his bestselling book ‘Rich Dad Poor Dad’ points out that At times, the salary is just about enough for the basics thus you will only have enough funds to take care of monthly needs whilst waiting for the next salary. Starting your own business could be the key to financial freedom and there are fundamentals to be followed in order to start and run a successful business.

1. Identify gaps in the market or problems

The most powerful tool to become successful in a running a business is to solve the problems being faced by people in the community. The likes of Steve Jobs solved developed the mobile phones as a way of bringing the complex computing power into much smaller devices. As a result, the average person can now receive or sent emails using their mobile phones thus reduced the burden of carrying computers around. The likes of Mark Zuckerberg solved the problem of poor networking through development of Facebook, and now has become of the most successful business people in the world with a net worth of more than US$40 billion according to Forbes.

2. Avoid Excuses

Most people are bound to delay starting their own business as a result of too many excuses. Some of the most common excuses include, “I have no capital”, “I am afraid that I will suffer losses”, “Its not yet the right time to start my business”, “no one is there to show me the best path to follow in running this business” etc. Too many excuses have become the major hindrance to financial freedom. Avoid too many excuses in order to start running your own business.

3. Amass Information

The most powerful tool in running or starting a business is gather as much information as possible. It is key to take heed of the advice from friends, family, business experts and business reports. If the information gathered has a lot to do with business idea, then it becomes a stepping stone to become the sponge. Whenever you come across information that has more to do with your business idea, write down the notes so as to create a detailed plan which becomes easier to follow.

4. Keep it Simple as you start

Most entrepreneurs start their businesses as simple start-ups and later developed then into empires. The idea is to keep learning at each stage of the business so as to improve the operations of the business. Create a simple good or service and then start running with it at small scale. Unnecessary features that affect offerings of the business should be eliminated since they may cost you money. As a small business, there is no need to have many functional areas as this may cause unnecessary distractions and may reduce the chances of rapid growth which will allow the new functions to be added as the business progresses.

5. Evaluate the Costs

As your intent to start a business, there are costs that are associated with a particular business venture. These costs should be considered as they may be used to assess the performance of the business. The most common costs to be considered include rentals, electricity, locations and unexpected costs. Some of the costs encountered as a small business is are very untimely and should be recorded.

6. Expect losses

The most common mistake that the majority of entrepreneurs have is expecting profits all the time. For a start-up, it may take a lot more time to start realising profits since the client base for the products or services on offer may still be limited. Furthermore, losses may come as a result of lack of confidence on products and services among customers. A business does not always operate under profit and it is important to identify the reasons operating under losses and tackle the causes of losses.

7. Talk about your business

The most critical problem of many business people is that they are clueless in selling and do not effectively market their businesses. If you are unable to convince customers to buy your products or services then it would be difficult to make money. Network with people via social media platforms such as Facebook, Twitter, Instagram and LinkedIn to market your business. Take part in all sorts of networking events including the likes of BNI, FSB and many other business seminars and events.

8. Know the legal requirements of starting a business

The law is not exciting at all but the rules of starting a business must be known. The government has certain regulations that must be followed in order to operate and failure to follow such instructions could lead to punitive penalties. Employment, copyright, data protection, tax, health & safety laws must be strictly followed at all times.

9. Earn as you Build

If you have decided to start a business, and can still manage to work for a bit, try not to quit your job as yet. Earn as you build your business. It is difficult to start earning steady income in the early stages of the start-up. Build your business during the times you are off and you use your day-job earnings to cushion you from the impacts of losses from the early stages of business growth. When the business becomes more stable, find the ideal moment to pull the plug and quit your job to become a full-time ‘entrepreneur’!

10. Have Passion and Vision

The most powerful ingredients of success are passion and vision. Passion and vision will drive you as an entrepreneur to grow your business. Vision is the wheel that propels each and every idea because with vision there exist a place where you want be and this gives momentum in executing the ideas of the business. As a business person, let passion be the centre of each and every decision to be made and this gives direction to where you are headed.