Starting a business is a very smart move and a great step to becoming self-employed and a boss of your own, however the prize comes with challenges. Most successful entrepreneurs started with little and earned greatness. Starting a business with little or no capital can prove dangerous especially when resources get used up yet technically it’s profitable. It is always advisable to start something that pays you back as quick as possible so that it is dependable, otherwise if you have another source of income in the meantime then patience will work very well.
A few things to note when starting a business;
Build the idea around what you love and enjoy to do.
Operating a business you love is the first step to its success. Conflict of interest in most cases is a demotivating factor in a business. It’s easier to do what love at no cost or little pay and it’s also true that you may be a genius at it.
As a beginner start small and grow big.
Starting a business is a probability, either you succeed or fail. Be calculative in financing the business. Put little resources and see what it can produce then later source more finance. Losing the little capital invested is better than losing a high sum, be smart, patient and resourceful.
Be the laborer at the beginning, NOT the boss.
It’s very necessary at this point to spend less so avoid hiring people and instead do the work yourself. After a period of time as the business proves viable, you can look for volunteers or hire one or two people to help out.
Never open office space until the business can operate on its own.
Renting office space is a very expensive step to take, only open the office space if the clientele of the business is growing. Never buy new equipment’s, second hand equipment’s would be the best at this moment in order to save money. We did not open an office for the Campusa Magazine until we felt the need to have it after two years of operation.
Develop a saving culture.
Notice that at the beginning you are spending the little you have in the business therefore it’s very important to have books of accounts balanced. You do not have to wait for greater growth to start saving, every little money must be spent wisely and with a budget. This is the most important stage because it will assist you in assessing the viability and profitability of the business. You can ask yourself at this point was my time and capital worth it?
By Irene Ageno Julu