In today’s tough economic times, money is just never enough. It doesn’t really matter if you’re in a well-paying job or feel at home with your current financial situation. Things are getting quite unpredictable. For those seeking to increase their income or secure their future, there are several options at hand. Two of the most common paths taken by people are starting a business and investing in the markets.
Both options are good. They are bold decisions to take and may require some research.
Whilst both entail a certain level of risk, starting a business is more demanding. Business is engaging and requires you to make crucial decisions that could define your success or spell your doom. Unlike capital markets where professionals run the game, as a business owner, you have to equip yourself with the right tools, mindset and knowledge to succeed. It’s a tough call but it can be very rewarding both financially and to you ego.
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Here are a few useful tips to get you started:
1. Define your purpose/motivation
Outline your reasons for starting the business and your goals. Having a clear direction from the onset can save you a lot of time and heartache along the way. It will keep you focused and motivated when you face the challenges of turning your idea/business into a profitable entity.
2. Do your homework- Research
Find out who your competitors are and analyse their strengths, weaknesses, market share and business practices. This will help you formulate a winning strategy. It is also important to identify your potential suppliers and partners. Find out how reliable they are. Many times businesses collapse due to unreliable suppliers and bad partnerships.
3. Know your customer
Define who your target clients are, their location, preferences and the similar products/services available to them. This will help you develop a market entry strategy.
4. Get your money right
Cash flow is perhaps the most important thing to a business. Make sure there is more money coming into your business than leaves it. Manage your expenses and keep them way below your income. Bootstrap and avoid unnecessary expenses until you have enough money to grow. Think big but spend small till you’re big enough to matter.
5. Master the Game
if you want to stay afloat in business, you have to learn to be a Master of the Game. Learn your business and become a pro in your segment. The more you are an authority in your area the more confidence your clients will have in you and they’ll recommend you to others. Keep on improving your skill in business, learn the trends in your business and strive to stay ahead.
6. Right Partnership
The business world is a jungle and the right relationships can ensure your survival. Basic choices such as you bank/financial institution, suppliers or Delivery Company can make or break you. Make sure your partnership or networks add value to your business.
These are just a few pointers to get you started. Nothing in business is cast in stone. You’ll learn as you go. One step at a time till you make it. Your ambition, adaptability and hard work will determine how far you get.