Page 2 of 3 FirstFirst 123 LastLast
Results 11 to 20 of 28

Thread: Five things you must consider when starting a business.

  1. #11
    Silver Member
    Join Date
    Oct 2011
    Location
    johannesburg
    Posts
    212
    Thanks
    2
    Thanked 9 Times in 9 Posts
    Know and understand the stages of business cycle: .. Stage 3 is very critical and hard to accomplish because GOOD employees and NOT easy to get and you need them to get into stage 4... Expansion

    Stage 1: Seed And Development
    This is the very beginning of the business lifecycle, before your startup is even officially in existence. You’ve got your business idea and you are ready to take the plunge. But first you must assess just how viable your startup is likely to be.

    Stage 2: Startup
    Once you have thoroughly canvassed and tested your business idea and are satisfied that it is ready to go, it’s time to make it official and launch your startup.
    Many believe this is the riskiest stage of the entire lifecycle.

    Stage 3: Growth And Establishment
    If you’re at this stage, your business should now be generating a consistent source of income and regularly taking on new customers. Cash flow should start to improve as recurring revenues help to cover ongoing expenses, and you should be looking forward to seeing your profits improve slowly and steadily.
    The biggest challenge for entrepreneurs in this stage is dividing time between a whole new range of demands requiring your attention– managing increasing levels of revenue, attending to customers, dealing with the competition, accommodating an expanding workforce, etc.
    Hiring smart people with complementary skillsets is necessary to make the most of your company’s potential during this phase, and so any good founder will be spending a lot of time directly involved in the recruitment process.
    It is essential that you start to come into your role as head of the company in this stage.

    Stage 4: Expansion
    At this stage you might feel there is almost a routine-like feel to running your business. Staff is in place to handle the areas that you no longer have the time to manage (nor should you be managing), and your business has now firmly established its presence within the industry.

    Stage 5: Maturity And Possible Exit
    Having navigated the expansion stage of the business lifecycle successfully, your company should now be seeing stable profits year-on-year.

  2. #12
    Email problem
    Join Date
    Dec 2017
    Location
    Pretoria
    Posts
    31
    Thanks
    6
    Thanked 9 Times in 7 Posts
    Some things I wish I had known from the start...

    1) It's much easier to supply a product to a great demand than to supply a great product where you have to create the demand. In other words, just because you have a great idea or great product, doesn't mean the market is ready for it. Companies spend millions convincing consumers of the 'next big thing', but most people resist change and as a small business focus on giving people what they want rather than on convincing people of what they want.

    So if you want to start a business, first find a demand to supply rather than first trying to supply a demand (I hope I'm making sense!)

    2) Marketing is 50% of the business. The best idea/product in the world won't make you money just by itself. And in fact, some really stupid/dodgy products can make money just from sheer marketing. It's better to have a smelly donkey cart hooked up to a stallion than to have a beautiful carriage hooked up to a two-legged mule. The donkey cart can at least go somewhere. Rather have a relatively dull business hooked up to a decent marketing campaign than have a brilliant business concept but no marketing.

    3) Keep overheads and costs low. You WILL make mistakes in business, but your mistakes are directly proportional to how much money you're spending. If you're spending a lot = big potential mistakes. You WILL lost money when starting out in business (mistakes cost money), but small costs = small potential mistakes. Also don't sign lease agreements, if possible, unless you have a proven moneymaking concept (by proof, preferably this means you have been paid for the service/product even before you signed the lease).

    4) Accept that failure is a necessary stepping stone to success. Very few business people are successful from the start. You have to be able to emotionally and financially be able to cope with failure.

    5) Almost every business needs to 'pivot', that is, it needs to change what it does to remain profitable. So don't fall too much in love with what you business does in the beginning, you have to change it after all.
    This guy on YouTube explains this point better than me: https://www.youtube.com/watch?v=-2m6JkJvv4w

  3. #13
    Diamond Member Blurock's Avatar
    Join Date
    May 2010
    Location
    Durban
    Posts
    4,151
    Thanks
    758
    Thanked 886 Times in 735 Posts
    Blog Entries
    7
    One of the biggest risks in a startup is to run out of money.
    If your budget shows you need R1 million, you will actually need 10! This may not apply to buy and sell, "me too" businesses, but in manufacturing that is definitely the case.
    Excellence is not a skill; its an attitude...

  4. #14
    Full Member Electrode's Avatar
    Join Date
    Dec 2015
    Location
    middelburg mpumalanga
    Posts
    91
    Thanks
    21
    Thanked 14 Times in 11 Posts
    Considering that I lost my business due to non-payment from my 'business partners'. All I can say is make sure you know who you are dealing with. Because if they are corrupt or untrustworthy in any way you will end up exactly like me. I lost my business, lost my livelihood and above all lost my physical stock. Even if there is a rumour of your partners being unethical in any way or form you should take note and base your actions on that rumour. I ignored the rumours. Lastly allays use a legal aid.
    DISCLAIMER - The above does not constitute to legal advice or formal advice in any manner or form

  5. #15
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    3,480
    Thanks
    134
    Thanked 695 Times in 593 Posts
    Blog Entries
    1
    In my experience, the acceptance and signing of a contract is no guarantee that it will happen. The deal is only concluded when the money is in the bank, especially if part of the terms and conditions includes investment up front.

    I made this mistake by investing a huge amount of money in development upon signature of the contract, and when the project was almost complete, and I requested the deposit as per terms and conditions before work started, it never materialised. Fortunately I was able to survive, but it did hurt me financially for a few years where my nest egg was depleted and I had no spare capital to do other ventures.

    Yes I could have gone the legal route, but it would have been spending good money after bad investment. Legal battles are not cheap or for the faint hearted.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

  6. #16
    Full Member Electrode's Avatar
    Join Date
    Dec 2015
    Location
    middelburg mpumalanga
    Posts
    91
    Thanks
    21
    Thanked 14 Times in 11 Posts
    Quote Originally Posted by Justloadit View Post
    In my experience, the acceptance and signing of a contract is no guarantee that it will happen. The deal is only concluded when the money is in the bank, especially if part of the terms and conditions includes investment up front.

    I made this mistake by investing a huge amount of money in development upon signature of the contract, and when the project was almost complete, and I requested the deposit as per terms and conditions before work started, it never materialised. Fortunately I was able to survive, but it did hurt me financially for a few years where my nest egg was depleted and I had no spare capital to do other ventures.

    Yes I could have gone the legal route, but it would have been spending good money after bad investment. Legal battles are not cheap or for the faint hearted.
    In my experience I personally found the legal route to be a total and complete waste of time and money. The legal system is designed to absorb as much funds as possible and never conclude ever. Thus the whole legal system is utterly useless for the average person.
    DISCLAIMER - The above does not constitute to legal advice or formal advice in any manner or form

  7. #17
    New Member
    Join Date
    Jan 2019
    Location
    London
    Posts
    3
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Plan, Plan and Plan Again

    Quote Originally Posted by tec0 View Post
    This is a short post on what must be done and what must not be done, when it comes to starting a new business. I found myself in this situation time and again and realized why "some people" will keep on failing at business.

    First and foremost do your own research on the product and determine if it is short term or long term. This is very important to calculate sustainability and future competition and or if the supplier is giving you a good deal or not. It will also communicate if you are able to do rebate, carry parts and stock and other responsibilities warrantee/guarantee to keep the consumer council of your back.

    Second aspect is the financial burden, this connects to the first step in a strong way. Buying stock is but one aspect, storing and distribution will also carry cost and with it responsibility towards the product. All of us have seen a damage box sitting on the discount table right? That is a avoidable loss to begin with. Shelf-life is also a major aspect when buying the product, if it is short term especially, it would be worth noting how fast a product goes "if that is a constant or not" how long it will take to restock said product.

    Thirdly, is getting the word out, simply having a product doesn't mean someone is going to magically find you. This is why systems like social media, internet, local radio and general advertisement is so important. It also locks into the second and first step. On your research it is important to know how you found your information and how easy or hard it was. It will also give you a good marketing strategy as to how to go about listing the product and it's information and how to draw the customer your way. It connects to the second step as well as you need to add the financial requirement for said advertisement.

    Forth step is probably the most important step as this is the actual introduction between you and your supplier and the introduction between you and your customer. If you took the time to do step one properly you can show both interest in the product and knowledge of the product. The supplier agreement is an absolute must have and needs to accommodate your needs as well as their own. A strong agreement allows you to deliver to the customer, and handle returns from the customer and above all is able to minimize your cost in returns "where in if possible". Be strict on damage products and don't give your customer "something old" when they are paying you good money.

    The biggest most important step is the fifth step! Don't involve people against their will like pushing your idea down on family/friends and expect them to pick up responsibility and become the primary driver of the business. A lot of new businesses have this and simply kills any chance it had. Identify responsibility and only reach out to someone if that someone is willing and able to accept responsibility. If you cannot accept responsibility it doesn't matter how much money is backing you, you will fail if not in the short them then in the long term because responsibility starts with YOU as the OWNER. Not the friend or family.

    I have seen 41 businesses fail "to date" where the main responsible person FAILED to do these seemingly simple steps.

    Yes there is much of that I have missed but I am sure each of us knows a few people that made these types of mistakes.

    Please feel free to add to the list.

    Money is not what crashes businesses, it is lack of planning. I work as an agricultural business consultant specialising in poultry. People approach for help in starting farms often with plans in hand and other collateral. Many of the project reports are shockingly generic, overly optimistic and making broad and sweeping generalisations. I understand that this is because of enthusiasm for their vision.I work to help them protect their bottom line and find a business model that is financially viable and realistic. I think that people need to account for all possibilities. These resources may be of interest / help and have takeaways for any business:

    https://thebigbookproject.org/agri/p...rming/project/

    https://thebigbookproject.org/agri/poultry-farming/profit-calculation/

  8. #18
    New Member Nydaycien's Avatar
    Join Date
    Dec 2018
    Location
    Russian Federation
    Posts
    2
    Thanks
    0
    Thanked 0 Times in 0 Posts
    When starting a business, the most important thing is your business plan. Many business startups tend to fail because of poor planning. You must plan your resources and steps so that you do not lose your business focus and divert to non-essentials

  9. #19
    Diamond Member Blurock's Avatar
    Join Date
    May 2010
    Location
    Durban
    Posts
    4,151
    Thanks
    758
    Thanked 886 Times in 735 Posts
    Blog Entries
    7
    Starting a business is not easy. The posts below has valuable information for the budding entrepreneur. One of the most important elements are to have a passion for your business, but this can also be your downfall if not considering the facts and wanting to push through regardless what you believe in.
    It also does not help to start a business and then keep it a secret. I have learnt this from the foremost marketing guru, Peter Drucker:
    "Because the PURPOSE of a business is to create a customer, the business enterprise has two - and only two basic functions:
    Marketing and Innovation.

    Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business."
    Excellence is not a skill; its an attitude...

  10. #20
    New Member
    Join Date
    Jul 2020
    Location
    Randburg
    Posts
    2
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Good morning & thanks for accepting my request... I want to start my own business but I have fear of what if I won't manage it well, I have so many what ifs that are negative... & I have this other good ideas about my company, is it normal to feel that way? How can I overcome that fear...

Page 2 of 3 FirstFirst 123 LastLast

Similar Threads

  1. [Question] Your best tip for starting a business
    By Blurock in forum General Business Forum
    Replies: 22
    Last Post: 18-Aug-21, 12:07 PM
  2. Starting a business
    By ians in forum Entrepreneurship and Business Management Forum
    Replies: 45
    Last Post: 17-Sep-14, 09:18 AM
  3. Things to remember before starting a website!
    By Missnancyalex in forum Marketing Forum
    Replies: 9
    Last Post: 05-Aug-13, 09:13 PM
  4. Starting a Business
    By Olderwagen in forum General Business Forum
    Replies: 10
    Last Post: 07-Feb-11, 09:53 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •