The idea of starting a business is one that excites many people; whether it is a side hustle to supplement the income they receive from their employer to make ends meet or as their main source of income, everyone is trying to make some money.
As exciting as the prospect of starting a business might seem, aspirant entrepreneurs need to be cognisant of the fact that it takes more than a great product or service to establish a successful entrepreneurial enterprise.
There is a considerable amount of work that happens behind the scenes of a successful business.
Head of enterprise and direct-banking propositions at Standard Bank SA, Jenine Zachar, highlighted the importance of entrepreneurs being aware of the details that go into ensuring they build a sustainable business.
She said: “What we aim to instil in entrepreneurs is the importance of understanding what lies behind the success of entrepreneurship – the numbers and other countless day-to-day admin tasks.”
While presenting at last year’s Standard Bank Unsaid Series Webinar, which aimed to give graduates and young professionals the tools to position the transition into the next phase of their lives, Zachar recommended entrepreneurs pay close attention to the following crucial points when embarking on their entrepreneurial journey.
Do your research
It is important to do as much research as one can about the business they want to start. Is it a solution to a prevalent problem? Is there a market for the service or the product? Who are the other players in the space? These are all the questions entrepreneurs need to ask themselves.
It is also important to research the types of licences and permits one requires to run their business, and it is equally as important to find out if there are other regulatory bodies you need to be registered with to carry out your business.
Test the concept
Once you have your conceptual service or prototype in mind, it is important to test the product or service in the market. This will help you understand if you have met the customer’s needs and will also help in the redesign and refine process. Testing the market allows you to gauge the viability of your product or service very early without massive outlays of investment.
Seek advice
Entrepreneurship can be very challenging, and it can become frustrating when you are unsure of what to do when challenges arise.
The importance of seeking advice from those who have been there before is often overlooked.
In the world of entrepreneurship, experience is the best teacher. It is highly advisable that any entrepreneur, who is starting out, seek advice and, if possible, mentorship from an established business owner, preferably one in their industry.
Access to funding
There are so many aspects to consider when trying to get funding for your business: what industry are you in? How long have you been in the industry? How long has the business been in existence? What kind of capital do you have to start with? Who are your clients?
There are many ways to fund your business. Some creative ways are crowdfunding and applying for micro-finance.
Some banks have facilities that ensure that millions worth of loans are issued to small and medium-sized enterprises (SMEs).
Manage your money wisely
It is important to have the right banking facility. Discuss your options with your bank to find a solution that best suits your business.
Now, more than ever, it has become much easier for business owners to manage all affairs pertaining to money in their business. Thanks to mobile apps, businesses can now manage all their business transactions without ever having to go to a branch. So entrepreneurs can use their time more efficiently to generate income.
Although there are many other things to consider when starting a business, the above are just some of the key things to look at to ensure that you start off on the right track in entrepreneurship.
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