Everyone has a magical idea that they think is a
money minting venture, viable in their own way because they know the right keys
to hit or the right strings to heave. But what most people, (the youth in
particular) lack is funds. Youth Empowerment and Development Funds, UWEZO Funds
etc; we have seen the ascend of many such initiatives in a bid to give the wherewithal
to the young minds to perk up economically and build an realm in their own
jurisdiction, from setting up a vendor stall to creating market for
agri-products to endowment of a novelty that will change societal discernment and
operation. The youth are an ambitious and entrepreneurial lot. Inspired in
their own ability and diverse in operation and beliefs of the business world,
go getters if you may call them. Every young person will tell you that they
want a certain lifestyle for themselves. Drive flamboyant cars, dress in the
latest designer wear and hack money like rapper Lil Wayne when they hit their favorite
joint. But do they have what it takes to acquire such a lifestyle? Do they know
what it takes to reach to such levels? I candidly don’t think so. Majority of
the young generation lack the restraint to contain themselves, keep calm and be
serene. They want to stick out their middle finger to the world and show that
they have made it. Truth of the matter is they have scarcely scratched the surface
of what needs to be done to say that they are there. They need guidance,
mentorship on how well to exploit funds meant for starting and maintaining a
business venture. They need to create a clear merit between their own lives and
that of the business. The aspect of separate entity needs to be outlined. Failure
to this is one of the reasons why SME’s fail desolately a short time after
start up. So how do you start and maintain a business to success without
investors and low funds? These are just some of the ways;
1. Prioritize
This is where many people fail and it’s
also the death bed of the business. Just like making a budget for your
household after the pay check has been received. Put more emphasis on the most
important units of production that is bound to give you the objective of the
business incorporation. They can be likened to the basic necessities whereby,
if you deprive off your business, its health will deteriorate. So, drop your
low priorities for the time being and focus on your mantra.
2. Plan
for your salary
The other major problem faced by
startups is that the proprietors are quick to reward themselves for the work
done before they have achieved maximum profits. Take the growth cycle for
example, before you crawl, you need to learn how to sit, then before you walk,
you learn how to crawl later, and you’ll be sprinting like Kemboi in the Landon
marathon races. Point is, bootstrap yourself. Bootstrapping means no salary
from the new business for some time. Plough back the profits to develop even
further, and in the long run, once the business is self sufficient, remuneration
will be mind blowing.
3. DYI
but know when to ask the expert
You have probably heard of the do
it yourself strategy. This is vital and key to the success of any start-up
since you will be saving on a lot of resources that would go in having others
produce for you, units that would be cheaper done internally. In as much as
this is being advocated, don’t lock out professionals. They will be of much
help in resolving some tricky issues likely to be encountered.
4. Co-operate
with other entrepreneurs
Co-operation will help a venture in
accessing information that would be out of sight as a solo trader. It will also
help in keeping up-to-date with the latest market trends in terms of policies,
designs, prices and specifications.
5. Scrutinize
expenses, negotiate contracts
The purpose of this is to ensure
that there is minimal wastage of resources especially in activities that do not
add value to the business. No particular stage of the business cycle has an
escape card to use resources for other purpose other than the intended one. Also,
negotiate on contracts with suppliers. Let them know that you are a start-up
and you are bootstrapping to avoid purchasing at inflated prices.
6. Build
audience early
This is the best way to build your
market before operations start. Take an example of movies, before the actual
release, the give viewers a preview of what to expect. Once the movie is out, everyone
rushes to purchase it, which is why movies sell. Create a blog or website for
your business. A social media site displaying actual items of your products
such that if a customer wants what is on display, they will get it, thus
satisfying their want and creation of brand loyalty.
7. Don’t
skimp on PR
Public relations are vital to the success
of your business. Well represented business and well treated clients will go a
long way in ensuring that businesses capitalize on their target market saving a
lot of costs incurred in marketing activities.
8. Soft
launch of first product
The saying the higher you climb the
harder you fall applies in the launching of a new product; whether in an
already existing market or a new one. Launch a soft campaign and analyze the
market response. This will save in costs incurred to manufacture the products
in large batches by doing it in smaller batches.
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