TOP 15 MORE IMPORTANT TIPS FOR ASPIRING ENTREPRENEURS! - by Matthew Ujah-Peter

In addition to the last 15 tips for people who are aspiring and planning to venture into starting business of their own, below are additional counsels that are sure to make the preparations more robust.

 1.  Passion - There must be fire in your bones and in your stomach for that business: if not, have a rethink and reconsider your choice. Without passion, you will sooner be like a car whose fuel suddenly ran out in the middle of a journey. The entrepreneurial terrain is not always rosy. Sometimes, even with enough capital you may lose steam.

 

2.      Having a home office (that is, operating your business from home) is good but not the best: As soon as possible, get an office away from home. This will help you separate office from home and give you work culture. It helps you “Go” to work. You must discipline yourself to resume work every 8.00am even when there is no client to serve. Staying at home make you relaxed unnecessarily. Having an office you go to gives you a sense of “being on duty”. But meanwhile, if the financial strength of your business cannot yet afford an office, do try to get into ‘’business mood’’ (or business mode) as soon as it is 8:00am, Monday through Friday, and “close” for the day when it is time.

 

3.      Incorporate or at least register your business name: You are not the business. The business must be separate (corporate) entity. Even though you will be the one doing most of the jobs from the beginning, you must always see yourself as a staff or an employee of the business. The business is (should be) a corporate citizen and separate entity with a life and “soul” of its own.

 

4.      Be a hands-on person: Though you may out-source some of your works or hire experts or employ staff to do the jobs, there is no area or job in the establishment you cannot do or at least have a fair knowledge of. An entrepreneur is a mop for information. The idea is to know something(s) about everything in the line of your business.

 

5.      Be accountable to the business even though you own or founded it: Keep record and run basic book keeping techniques and have some good knowledge of accounting terminologies. Give account of yourself to the business. Give reports of your jobs.

 

6.      Read voraciously: study every aspect of modern business practice. Keep abreast of news and latest information in your field and related fields. Besides reading, you should watch tutorial videos that replete the internet these days.

 

7.      Be focus and be persistent: new business ideas will always cross your way while the original idea may face challenges. Learn to exercise staying power. Being focus does not mean refusing to adjust your idea to suite the current demands. No matter how long the idea has been with you, it can and should be redesigned where and when necessary. Sometimes you may need to abandon a strategy or tactics while the goal should remain.

 

8.       Mistakes are training classes: in business there are various forms of classes to pass through. Some of these mistakes are actual teachers or training classes. The money you lost is the cost of training or tuition fees. A manager who failed in a major business project was about to be fired. But then the management got to realize that the said manager would become an asset for their competitors if sacked. The money lost in the failed project was considered an investment toward the training of this manager.

 

9.    Be diligent and disciplined: although, eight hours-a-day is the usual working duration that should be the minimum for you as an entrepreneur. While there is a place for rest and recreation, you must put in enough hours to your work every day, except weekend. Working 10-12 hours a day will not kill you.

 

10.  Work with people (network): it is true that your network determines your net worth. Again the saying is true that says, “If you want to go fast, go alone. But if you want to go far, go with others.” You may go fast and get nothing. But when you go far, you gain a lot. Look for like minds and superior minds to relate and network with. There is profit in this.

 

11.   Learn the art of communication: the art of communication or communication skills in business cannot be over-emphasized. Business communication includes body language, verbal, written communications etc. Different situations and occasions call for different communication approach. 

 

12.   Be consistent, persistent and resilient: this means to 1. Be known for something good or be faithful. In other word, practice what you preach. 2. Never give up easily. Unless you know for sure that your decision or path is wrong, do not give it up. 3. Be strong enough to always bounce back each time you fail or fall. This also means persuasiveness. That is, not giving up until you get the answer you need.

 

13.  Be emotionally intelligent: what you do when you feel angry, provoked, hurt, put down or embarrassed etc., determines your level of emotional intelligence. If you can keep being level headed and self-controlled under these situations, you will win easily. Learn to not take things personal. Learn to not let your ego stand in the way. A prospect, for example, or someone who proves difficult or very hostile may often turn out to be a good customer, if you manage your emotions well. Consistent smiles in the midst of rejections and even insults, for instance, have often proven to turn a solid NO to a continuous YES.

 

14.   Be excellent and quality-minded: having and maintaining a standard and be known for it is a major backbone of survival in the marketplace. Never sacrifice quality and excellence on the altar of quick sales and profit. Most customers who appreciate quality would rather you charge more and maintain or even increase quality than reducing quality to remain in business or to maintain profitability.

 

15.  Be a calculated risk taker: business is a risk-taking adventure. However, it requires you weighing every option. Do not do things out of a “no option” syndrome. You must have options to choose from. This is one good way to calculate risks. Always have a “plan B” to fall back on. 

TOP 15 TIPS FOR ASPIRING ENTREPRENEURS! - by Matthew Ujah-Peter

Before you quit your job or while planning to start a business the followings are tips that will help you develop your business idea into a fully-fledged business entity.  Before you resign from your present job or before you start a business either as one without any previous business experience or before doing a business outside your current job industry, do the followings:

1.      Ask yourself the question: what else can I do within my area of talent, skills, expertise, experience etc., to earn the same amount of money, equivalent to or better than my present salary?

 

2.      Develop your business idea: it is worth noting that having a business idea is not enough to start building a business. There must be a market opportunity. The idea may be wonderful to you but may not fly in the real world. It may just be a fantasy. This is why my advice does not say “have a business idea” rather it says “develop your business idea.” This is because; having a business idea is different from developing a (or the) business idea. Most people have business ideas but not all get to develop the idea.

 

3.      Differentiate between needs and wants: the next step towards developing your idea is to determine if it is a need or a want that you are out to meet. Needs are essential and unavoidable requirements of life while wants are choices and preferences based on individual’s tastes. The challenge is that most needs already have markets. The markets are often saturated. So trying to enter into such business will be challenging. Besides, people do not just pay for something just because it is a need. They must have to want it to buy it. Buying decisions are often based on preferences, priorities, urgencies, emotions etc. What you may have to do is to convert a need into a want. Water, for example, is a need and people do not just buy water because it is a need. How you provide or package the water will have to be guided by what people want – that is, how the market wants the water supplied – the form or format the people want the water. What they want to use it for will determine the form in which they would want you to supply it.

 

4.      Determine the viability of the idea - spot a business (or market) opportunity: the next step to developing a business idea is to find out if there is a business or market opportunity for the idea. A business opportunity may come out of a personal challenge you were able to eventually solve and in the process discovered that other people are also in such problem and are in need of solutions. Haven solved yours you would want to solve others’ for them and get paid in the process. Or it could be a need you have the skill for or know where to get the skills or solution for. Then go ahead to ask yourself a few questions: Are there enough people who are willing to pay for that solution – that idea? Are the people who are willing to pay for the solution plenty enough to keep the business going? (The market must be large enough; else, it is not yet a viable business opportunity). Is the idea informed by a trend or a fad? (A trend is a new development with a huge growth possibility, e.g. the internet, new media, social media etc. whereas a fad is a momentary craze or a temporary vogue. Trends evolve and develop. Fads often fade and fizzle out). Ensure the demand for the product or service is growing.

 

5.      Recognize and know your customers: to recognize your customers means ability to spot those in need of your product/service. To know your customer, on the other hand, is to know their status, special preferences, tastes, backgrounds and locations etc. Who are your customers? Where are your customers? What are their earning powers or income levels? Will the way you package or present the product or service be acceptable to them? The answers you get to these questions will help you develop your business idea further.

 

6.      Determine how peculiar and enduring the market is: this means that you should research to find out if the market (that is, those who need the solution you are bringing on board) will continue to exist for the long term. The problem must not be a temporal one but one that is a somewhat continuous basic human problem and which will make your business a going concern. This will mean you will need to do due diligence to get workable statistics on the peculiarity and behaviour of the market as well as the nature and the continuity of the needs to be met. This means that you must take care not to build your business on fads and temporal trends, as mentioned before. (Note too, that some trends may not last for so long as superior technology or innovation, belief or culture may come on board and either knock it off or replace it as it evolves or develops. In fact, some trends may grow into something else totally different).

 

7.      Determine the volume of product/service that you will have to provide to get you to a breakeven point: This means that it is not enough that the market is large and also will last, you must know from the beginning how to sustain that business by way of capacity to reach a point of, at least, “no-loss-no-profit” (otherwise called breakeven point) within the first 12 months to 24 months of the business.\

 

8.      Determine your break even units: this means that you should be able to know the quantity/volume of product/service to churn out and sell so as to reach the breakeven point within 12 to 24 months. Your sales forecast would help here. 

 

9.      Determine your capital: having known the need you wish to meet (that is, the business idea), the people who have that need (the market and its size and nature) and how to meet the need profitably (the business opportunity), the next thing to do is to determine the capitals to use. Your capital includes human capital (other people’s skills and expertise), intellectual capital (information and knowledge) material capital (equipment, tools, raw materials, power/energy, land/venue and other facilities) and financial capital.

 

10. Determine your suppliers: who will supply you these capitals – the machine, raw materials, land/business premises, office or factory), power, energy, skills and expertise etc? How do you get them? You must determine from the start how to get these capital and how to keep getting them as the business continues, grows and expands because if the supply stops or reduces the business also regresses or even stops.

 

11. Determine your internal factors and prepare for your external factors: Every business has both internal and external environments and what happens in these two environments are the factors that directly and indirectly affect how the business fares.

 

Internal factors include factors that you can control. From the beginning you can begin to design and determine these factors because they will spell the success and future of the business. Examples include:

 

·        The goals and objectives of the business being developed.
·        Vision and mission of the business (i.e., your target and how to reach it).
·        Core values, culture and philosophy of the business.
·        Business policies you (rules guiding your operations, transactions etc.).
·        Quality of man power (minimum qualification/skills to be employed).
·        HR policies (staff motivation, training, rules, penalties, rewards and privileges).
·        Etc.

 

External factors are those you have no control over but which can affect the future of the business. But you can and should prepare for them. Examples are:

·     Political/government factors (political situations in the nation).
·    Legal factors (government policies on business and laws that affects businesses).
·   Socio-economic factors (e.g. rate of inflations, purchasing power of the people etc.) can cripple or triple the success of the business.
·     Technological factors (how new technologies takes over old ones and the likes).
·      Socio-cultural factors (social and/or cultural attitudes to or perception of certain products or line of business) can affect the success of the business.
·      Educational factors (level of education/exposure of the market could affect how a business or product is received).
·   Professional/occupational factors (some product/service may be more viable with people in certain line of occupation or profession).
·     Religious factors (certain religion prevalent in a place may not support certain business or products).
·        Etc.

 

12. Acquire skills and/or bankable information around your (intended) business. It could be a business that is within the industry you are presently employed and which you understand well if not, it is better to learn the ropes.

 

13. Design your business model: this is simply listing your value proposition, market segment, marketing, distribution and sales channels, streams of income, budget etc. The exercise sounds simple, but it can be quiet tasking but rewarding as it will surely open your eyes and your mind and give you further insights on the business idea. [This exercise is done in our classes and is followed by business plan development exercise].

 

14. Do your business plan: a business plan is a road map or blue print to help you on your way to your goal.

 

15. Do have the followings in mind:

1. ·        People who have money do not like to give good money to those who do not have money, skill/      expertise or other form of value, even if the money is a free gift.

1. ·        No sane person will part with his money or plan to give it to you without being convinced that you can solve (his) problems and give him value for his money.

1. ·      If you are a hard worker, smart, have a solid and promising plan, money, expertise, skill or the look of any of them, it will be easier for people to give you money. Remember, even a gift is trading currency. Many people give gifts to get into the good books of the receiver which is why beggars are given little. If you have nothing for people to invest in, even gifts will seldom be given to you. The best you get is a “handout”. Be or become an investable asset, then you won’t have to beg.

1. ·      Life is in phases, men are in sizes. Live you size per time. Every phase you pass through increases your size. Maximize every phase.

1. ·        Integrity, honesty and probity are better capital than money, they are tough to build but pay like hard work.