Ready, Steady, Go!

These steps will help you hurdle the challenges of starting your first business.

Experts believe that Small and Medium Enterprises (SMEs) are most likely to fail in their first year of business. There are many common mistakes that contribute to this high failure rate. Here are five tips to get you through the hiccups of entrepreneurship in the early stages.

DO 1:   Market Research
Study your market. Conducting research helps an entrepreneur understand the needs, expectations and demands of would-be customers. To do this, you don’t have to spend money buying pages of published reports from a multinational research firm. Speak to your most likely clients – relatives, friends and neighbours to get some insight into your market. Ask them them questions like why they would like to buy your products? What is wrong with similar products they are purchasing elsewhere? Or How can the same product quality be improved?

DO 2:   Interact with Successful Entrepreneurs
It is a truism that birds of a feather flock together. In other words, success breeds success, and successful people tend to keep company with other successful people. So seek to interact with other entrepreneurs, mostly those past the start-up stage. It is advisable to join a professional membership group and take part in networking sessions. Not only will it build your reputation, you will also gain advice and make contact with people you might work with in the future.

DO 3:    Learn to Manage -  or Get Advice
Most entrepreneurs come up with brilliant ideas, but they don’t necessarily make the best managers. Sometimes it is better to consult professionals who understand more about the management and the execution of your ideas than you do. For instance, a professional might help you in taking care of the accounts, coming up with a business strategy as well as offer advice on what risks are worth taking.

DO 4:   Cut Overhead Costs
You have probably envisioned having a large  spacious office with state of the art furniture and superb décor. Hold on, watch your overhead costs! Before you buy it, ask yourself, can you do without it? Remember it will probably take you months before you start making sales and profits. Start small and make sure your expenditure is as low as possible.

DO 5:   Get the Attitude
Your attitude as an entrepreneur is just as important as your business idea. Expect that you will meet people who will try to discourage you. That is why you need to be your number one supporter. Believe in your ideas and in yourself. During those challenging times, remind yourself what made you get into business in the first place. Feed on that energy and keep going.