By Frida Owinga
Despite statistics and
research stating that many businesses fail in the first 3 years, it is amazing
how many people ignore that and still jump in the deep end. This is not
to scare you from starting a business. It is to sensitize any one desiring to
start to be cautious. If 75% of businesses started are not making it
beyond their 3rd birthday, any one starting should be curious to know what they
should avoid and what should they embrace. That is why I am passionate about helping more
people start sustainable and successful businesses.
Following are some more
tips for those who are considering starting one.
1. Know yourself and be very true to yourself.
What is your true
motivational level? How much money are you willing to risk to be successful?
Sure, we all want to make millions of shilling. But what are you willing to
give up reaching that goal? How many hours a week will you work on an ongoing
basis? How far out of your comfort zone are you willing to stretch? How far
will your family stretch with you? To be successful, keep your business plans
in line with your personal and family goals and resources. I have observed that
many people fantasize about owning a business. And in their fantasy, there
is lots of money, lots of free time, and very little work and sacrifice.
That fantasy is the end of the story not the beginning.
2. Align your passion with an opportunity.
The old formula - find a
need and fill it, still works. It will always work. The key to success is
finding needs that you can fill, that you want to fill, and that will produce
enough income to build a profitable business. Filling a need in an area you
have no skills, strengths or interest can end up in drudgery.
3. Be sure there are enough people who are willing and able to
buy what you want to sell.
One of the biggest
mistakes start-ups make is to assume a lot of people will want to buy
a particular product or service, because the entrepreneur likes the ideas or
knows one or two people who want the product or service. To minimize your
risk for loss, never assume there is a market. Research the idea. Talk to
real potential prospects (who aren't family and friends) to find out if what
you want to sell is something they'd be interested in buying, and if so, what
they'd pay for the product or service. Most people who consult me because they
want to quit normally cite lack of clients as their reason to quit. They
say the business in not making enough money. When I ask how many clients do
they have and how do they get them, they say through family and friends.
Your business should be able to service more people than your family and
friends if you are ever going to enjoy serious profit.
If you would like to
attend a Passion Profit talk that will help you start a business, consider
joining us on August 9th at Intercontinental Hotel. Registration is
ongoing.