What you need to know before starting a business

Let’s look at some pertinent questions on the minds of would-be entrepreneurs in order to try to address them.

What sort of business should I get involved in?

The first rule in starting a business is to follow your passion.

What are you passionate about?

What keeps you awake every night?

what do you love to wake up to every morning?

What themes have been consistent with you over the years?

The second thing you want to find out is...

what opportunities are available in the market place?

What businesses can you start with little start-up capital?

When is the best time to leave my job if I’m thinking of starting a business?

There is really no best time. I’ll borrow a leaf from a popular Chinese Proverb: “The best time to plant a tree was 50 years ago; the next best time is now”. The rule of thumb is to work long enough to a point when you have gathered sufficient savings and got a wide network to help you on your entrepreneurship journey. However, some of the most successful business owners never worked for a day. It really depends on the kind of business you’re thinking of going into.

I’ve got a business idea, but I see many people in this line of business. Would I not just be one of the many players in that industry?

You don’t have to jettison a business idea because there are other players in that industry. What you need to do is to strive to be different. The quote to go by is: “Be different or nothing at all”. Look at the market, industry or perhaps your current organization. Ask, what can I do differently? How can I improve on a process, and how can I create a business out of this improved process?

I’ve got all my ideas and I’m confident that this business will succeed, where do I get start-up funds from?

The first place to look is within. What funds do you have? You don’t just have to consider equity in terms of cash, but also sweat and knowledge. What skills do you have and what partnerships can you leverage on? If you need to sell some assets to make your dreams come through, then you should consider this. Also, If you have built credibility over time either in your work place or your school, then you can approach your former bosses, lecturer, family members and friends. Make sure you have an agreement in place with anyone giving you funding so that problems do not arise over time. At the start-up stage, you want to get patient capital, which can stay in the business for long without repayment immediately.

How do I go about hiring staff?

You have to realize that the first staff is actually yourself. Invariably, you will attract the kind of person you are. So it’s essential to have the right attitude as an employer before you can attract the ‘’right’ kind of staff.  You shouldn’t hire so many people at the first instance. You should look to use some form of temporary staff or contract staff for non-sensitive roles until such a time that you have sufficient cash flow coming in to pay staff on a permanent basis. You can also approach some human resources (HR) firms who would help you in hiring for a token. It doesn’t have to be the large established firms, but you can get some smaller firms that will offer as much value. In addition, you can outsource some functions like accounting, IT, and HR, among others.

What should I be looking for in a bank?

As a start-up, you want a bank that has a dedicated SME department. Not all banks have this. You also want a bank that has a dedicated business account. Knowing that costs are an issue for your start-up business, you want to minimize as much costs as possible. You also want to find out if the bank has any form of capacity building for small businesses that bank with them. Some banks actually offer free business advice and you want to take advantage of things like this. In addition, some have free online stores that you can upload your goods and services in order to reach a wider audience. Then, look for a bank that has good online presence that enables you bank conveniently and remotely with little risk of tampering with your accounts.

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