DestiNation 6

Many businesses don’t make it past the 5 year mark. Be clear on why you want to start a business.

Understand yourself. If you’re a self motivated, problem solving, people’s person with business savvy and you have the ability to live with uncertainty, you are off to a good start to becoming an entrepreneur. Pick something that you are naturally curious about and actually want to do!

Understand your market. Who will buy your product or service, and how will it make their life better? Focusing on meeting a genuine need in the market, and not just on making a quick buck, will mean a sustainable and healthy business.

Understand your competitors. Duplicating an existing service in a saturated market is not ideal. What unique skills do you bring to the table that will give you and your business a competitive edge? Look at competitors and learn from their strengths and weaknesses.

Don’t mess with the law. Know what regulations the government require for new businesses.

Sole Proprietor, Partnership, Close corporation or Private Company? Different business structures bring different benefits and limitations. Choose the most appropriate one for your start-up. Here are a few sites you might find useful:

http://southafrica.smetoolkit.org
http://www.bizempire.co.za

Retail, wholesale or internet-based? Figure out what channel is best for your product or service.

Starting a business part time is easier than starting out full time. Having a steady income while you find your feet reduces stress and pressure. Make sure that this doesn’t however conflict with your conditions of employment with your employer.

Work out how much start up money will you need. Keep in mind things like stock, rent, marketing, business cards and office supplies. Create a detailed budget and cash flow forecast.

Think about partnering with people who have the right skills, assets and capital to make your business work. Think twice about starting a business with friends. When things turn ugly, you could lose friendship on top of money.

Make sure you have your family or loved ones’ approval. New businesses often require 16 hour, 7 day shifts.

Ask people’s opinion on how you can improve your product or service for a reality check.

Money is a huge influence on your business. Start out small and expand when you make more money. Take out a loan if needed.

Make a PowerPoint presentation on why your product or service is the best. You can use it to pitch your ideas to venture capitalists or anyone willing to invest in your business.

Write a business plan. Thinking through all aspects of your business will help you to avoid a lot of obstacles, and help you understand whether the business is actually viable or not. This may seem boring, but it is important. Spending a few hours writing the plan can help you to avoid months or years of heartache! Also, getting partners to agree on business goals, why they're attainable and how they will be reached is a smart move.

To get your own step-by-step business plan, click here to download.

Working from home in the beginning is a great money saver. Don’t invite clients to your home though - rather meet them at coffee shops.

Great service and products won’t go far if no-one knows about it. Devise a savvy marketing plan for your business.

Prepare yourself for common problems of new businesses: money trouble, too much risk, too few partners with business knowledge, too much admin.

Stay up to date with technology, which could improve your work and make your life easier. See www.smbboss.co.za for a free download of a booklet compiled by Microsoft regarding software applications.

Keep track of all your expenses to avoid a bookkeeping nightmare a few months down the line. Your business may need to register for different forms of tax. Seek assistance from a tax consultant or an accountant, who is also a tax specialist. It is better to have the peace of mind that your financials are correct and submitted in time.