More people in pay employments would eventually have their businesses; it is more likely for Nigerians, especially those that have attained managerial level in various organisations, consultants at LSintelligence said in a chat.
To some people, it is dreams come true not to be answerable to anyone but beyond that; we don’t retire here, Jones Edu, a serial entrepreneur supporting start-ups with funding said in an executive chat MarketForces Africa team.
The team asked some start-ups owners why did it take them time to start a business and what would they advise others with similar aspiration.
The result was overwhelming as more than 58% between 28 – 39 years said that they needed to time to learn, raise capital and start their own businesses. Others who fall between 40- 45 years said that is how the system made them and would put other things into consideration.
MarketForces observed that those that have idea before going to pay jobs, or get their ideas in-between are performing excellently running business operations than those that retirement forces them to think alternatives.
LSintelligence Associates stated in note that establishing a business is not a rocket science, but that doesn’t mean every business succeeds. As a matter of fact, businesses die per seconds for various reasons across the world. That reasons, many entrepreneurs have failed to find out, the consultants added.
According to research conducted by LSintelligence, at the end of the day, more than 60% of people in pay employments want to have their own business.
However, 56% of these wanna be entrepreneurs would actually see to this happening why 39% struggle to fit into the art and science of coordinating factors of productions. The remaining seems to have assumed their time is up; perhaps think they are coming too late.
Irrespective, business managers need certain tips to succeed in a new venture, if they don’t know already.
Jones & Edu Investment was opened after so much delay, trying to figure out how to set up, competing with existing brands and scaling in tough business environment where pattern of discussions among Managers is negative, Edu told MarketForces Africa.
Every small scale ventures usually starts with an idea that a person thinks could be turned to cash flow, but it is decision to execute the plan that becomes a business eventually. I don’t just invest in ideas, I look at the people and see deep down into passion before sowing my seed, Edu said.
But statistics is crazy, as it has shown that more than 50% of new businesses go down in less than 5-year. That is discouraging, though but must be seeing as an insight rather than anything discouraging.
When you are starting a business, it should not be about profit, you would be disappointed if it doesn’t come just in time. Till the land, harvest would come is the rule, Ogochukwu Ndubuisi, Head, Marketing & Strategy at LSintelligence told MarketForces Africa.
However, the principal measure for a successful business is profit, a derivative of good service delivery or quality products that meet customers’ needs, she added.
Business community first rule is to serve the customers; building the business and increasing customers’ loyalty through patronage and that will bring profit.
Ogochukwu said, “If you sell a product or service to a customers at a price higher than your cost, you have a profit but if the customers that paid you is not satisfy after using the product or service, you just made a loss. It is not by refund, expect the user to de-market you and you will pay for that before you could redeem your image. If ever you would be able achieve that”.
In other words, it is expensive to do damage control than to have quality culture in place. Just as you try to scale up, growing the business to unprecedented height. LSintelligence supported
Aspiration is not illegal. Scaling comes with additional challenges. If you are not cut out for it, you would be overwhelmed.
To scale, you needs a smart, strategic plan. Whether a business is in its infancy or has been around for years, there are a few things every small-business owner needs to keep in mind, Edu said in an executive chat with MarketForces Africa.
Which market do you wish to serve? Find out their needs.
Old men these days don’t like their tea with sugar, few take milt. If you don’t know their preferences, of course individually, offering them sweet tea would be a bad business.
Hey, I’m here
Communicate. It’s important to spread the word of your business when you start out and as you grow, communication becomes an important factor in order to build your customer base.
You can do this fast now compare to last few decade, using planned social media campaign. Instead of trying to make everyone a customer, try something a little more focused, strategic and rooted. First, identify who your customers and decide how you want to serve them.
You must be ready to stay close to the market. Your first customers should be people that are willing to give you feedback – honest one. Ask them to give you honest appraisal. With that, you would be able to forge to the next line
Keep record of business transactions
Record keeping doesn’t matter to some entrepreneurs. To them, it is not necessary. This is a grave error that has spread, not all businesses keep accounting record – when it is not statutorily required.
Successful businesses keep detailed records. By keeping detailed records, you’ll know where the business stands financially and what potential challenges you could be facing in terms of cash management.
Knowing this ahead gives you time to create money management and strategies to overcome being cash trapped along the line.
Business operations at infant level are usually face with this but as time goes; the manager get accustom to how they can best manage their working capital needs.
Sales day book; purchases day book, cash book etc. are necessary to keep track of cash flow. Thanks to technology, all these can be access at cheap cost. A simple excel template can do the work for you.
Be organised, identity your competitors and be ahead of competition
To be successful in business you need to be organized. This will help you complete tasks and stay on top of issues waiting for attention or decision.
A good way to do this is to create a to-do list each day – as you complete each item, check it off your list.
This will ensure that you’re not forgetting anything and you’re completing all the tasks that are essential to the survival of your business.
Competition breeds the best results. To be successful, don’t be afraid to study and learn from your competitors. You don’t let them know you are doing that. It is called benchmarking.
After all, they may be doing something right that you can implement in your business to make more money.
Understand the risk, and love it
Keep your eyes on the ball. The key to being successful is taking calculated risks to help your business grow.
The level and quality of risk an entrepreneur prefers to take, determine the return. More often, the amount you put in a business determines your expected return.
That does not mean excessive risk should be taken unconsciously. A risk taken in dark can doom the existence of your business. A good question to ask is “What’s the downside?”
If you can answer this question, then you know what the worst-case scenario is. This knowledge will allow you to take the kinds of calculated risks that can generate tremendous rewards for your business.
Don’t compromise your quality, be creative.
If intelligence isn’t having fun at your backyard, you can’t birth creative intelligence. Always be looking for ways to improve your business offerings and to make it stand out from the competition.
Recognize that you don’t know everything and be open to new ideas and new approaches to the business. Offer good services even if you have to make sacrifices sometimes. Creativity will become your competitive advantage in the marketplace.
Be focused, and be consistent.
The old saying that “Rome was not built in a day” applies here. The cathedral of Notre-Dame de Paris would take years to be repaired too. The fact that you open a business doesn’t mean that you’re going to immediately start making money.
It takes time to let people know who you are, so stay focused on achieving your short-term goals and give the rest time to come together. Consistency is the key component to making money in business.
You have to consistently keep doing the things necessary to be successful day in and day out. This will create long-term positive habits and it will help you to make money over the long term.
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