Want to start your own business? Here's how . . .

May 16, 2016

How plausible is your idea? Make sure you don't go too far before thinking about this factor.

1. START WITH AN IDEA

Come up with an idea

To begin with, you'll need an idea for a business, and to get a clearer image fo what you want to start up, carrying out a market research is very important.

Your business should be passion-driven. You can base your idea on the things people need and are, more importantly, willing to pay for. It's also best if your idea is unique.

Is it possible?

How plausible is your idea? Make sure you don't go too far before thinking about this factor. Is it worth investing money and time in? Also, can it be realised? Food for thought.

2. MAKE A BUSINESS PLAN

After considering the above, time to come up with a business plan . . .


Determine your cost of operation

A solid business plan is important. One that you can present to potential investors. And how best to determine this than by knowing your probable basic cost of operations. With this, you will be able to determine how much money is needed to produce the product or offer the service you have in mind. Don't forget to think about things like productions costs, taxes, worker's wages, rent for workspace, etc.

Who/what is your potential market?

This is very important, and it will do your good if you are REALISTIC. How many people will realistically use your business? How much will they pay to use your services? If you see that you will have to put in more than what you will potentially get back, consider changing your plan(s).

And problems/obstacles?

Of course it's never smooth-sailing in any business. Plan ahead for any problems that may get in the way of running your business. For example, evaluate your competition, explore the associated regulations and laws, etc.

3. MAKE A MARKETING PLAN

Budget

Once you have a general idea of how much money you have to work with, write up a budget for marketing which indicates how much money you have available to spend on advertising.

Ideas should fit your budget

Once you know how much money you have, do some research on the costs of different types of marketing and come up with ideas that fit those methods and are effective for the price range. For example, if you don't have as much money as can help you shoot, say, a  commercial, take advantage of social media.

Plan timing and location of marketing

With the kind of marketing known, next think about the most effective places to advertise and what time of the day, month or year are going to work best to reach your intended market.

4. GET FINANCING

Approach your bank

Talk with a bank with whom you already have a positive relationship. Ask about what kind of business start-up loans they offer and how they can benefit your business. By using a bank you already know, the bank will have easy access to your financial records and will be more confident in investing with you.

Get local investors

If the bank loans will not be enough, look into local investors. A local business tycoon, for example would have a vested interest in seeing you succeed.

Seek venture capitalists or angel investors

Angels are high net worth individuals and venture capitalists are companies. Both fund a promising high risk venture for a stake (partnership) and often bring experience, management expertise and contacts to the table.

Approach friends and relatives

Try people you have known for a long time. They are most likely to have faith in your abilities and, most importantly, intentions.

Use crowd-funding

If you still can't drum up enough funding, use websites to raise the money you need to start.

Report

Regardless of which source you raise funds from, be sure to provide key operating, strategic and accounting information to your financiers periodically, usually twice a year.

5. BUILD INFRASTRUCTURE

Get an office

You will need a space from which to run your business.  It can be a home office or it can be an entire workshop or warehouse.

Buy equipment

This can mean mechanical equipment, computers, telephone, or craft supplies. It all depends on what you are doing.

Create a records system

From doing taxes to figuring out why you're mysteriously missing sh200,000 to searching through customer records to find out if Mr. Guma did in fact pay his bill.

6. BUILD A CUSTOMER BASE

Make use of marketing and PR

You will want to reach out to potential customers in ways that make them want to use your business. This is especially important when you are first starting, before you have an established, regular customer base.  

Use a little old fashioned networking

Go to conferences, charity galas, meetings with complementary businesses and anywhere where your customers are likely to be highly concentrated.

Have great customer service skills

Be good at interacting with people. Practice reading between the lines of what people say. Learn how to meet needs they didn't know they had. Figure out how to make people happy. Be charming. Most importantly, be humble. The customer may not always be right but you need to be able to let them think they are.

Have a website

The world has moved online. Any business that wants to survive the next ten years is going to have a website. People will use it to contact you, find your location, learn your operating hours, ask you questions, make suggestions, and maybe even buy your products or services.


7. AND FINALLY, GET PAID

 Require payment. Don't let people take advantage of you. Require payment within a specific window of time (whatever is appropriate for what you do). Invoice people as soon as you possibly can. If someone is late in a payment, talk to them. If you ignore these problems hoping that they go away, you will find yourself working for free and your business in the tank.

Take credit cards (yes, even in Uganda!)

Very few people consistently pay for products or services with cash any more. It will be much easier for your business, as well as records keeping and accounting, if you accept credit and debit cards.

Set up an online system

If you plan to have products for sale online you will need to make sure to set up an accord online payment system. Services like Paypal make this incredibly easy. Research to find out which method is best for you. However, make sure that whatever system you use is secure.

(Adopted from online source)

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