Do you need to study business to know the business language? No! Everyone can become a successful business owner as long as you agree and appreciate the outcomes of business. Uganda is very entrepreneurial considering the size of the informal sector. This is the sector of the economy where young intellectuals operate, such minds can transform the economy if given the support necessary. However, they invest small, earn as much as they can without a dream to become bigger.
The following if taken seriously may transform a small business to larger company.
Business Identification
Despite the informality, we still need to be mindful of the businesses we do. Do more research on both the positive and negative aspects? Find out how many people were successful and why? How long it took them to accumulate capital and expand.
Make a business plan
It does not matter how small the business is, the business plan will enable one to monitor and implement the ideas and objectives of the business. Having a well written document helps a lot when it comes to generating financial support either from commercial banks or friends and family.
Derive ways of financing the business.
Saving for the business is the best way to source finance, it shouldn’t matter how long one must save however if business is capable of paying back the loan then the 30% finance can be borrowed and 70% saved. Family members and friends can too play a role in financing. Actually it’s better to borrow from friends and family than from a financial institution.
Save and re-invest
Majority of business men especially in the informal sector do not save and re-invest. They earn profits, spend and again borrow. Such poor financial control continuously keeps them in the same business without growth.
Growth is very important in a business. Saving just 1% of the total daily or monthly profits can create a huge difference not only in time of uncertainty but it enables the business to exit production for consumption and meeting necessities to commercial business.
Anybody with ideas can become a business man but what kind of a business man are you? A successful business man invests, saves and re-invests.
