Aspiring entrepreneurs may currently be facing the challenge of a strained economy but Mags Ponnan, head of Customer Value Propositions at FNB Business, believes that taking a leap of faith anyway, can reap large rewards in the future.
“Starting a business is never easy, but it is an adventure worth exploring. When you do get it right, the benefits are immense in spite of a slowing economy. Great ideas need a unique sales proposition – making a business work is based on good and meticulous research and being confident enough to take the leap,” said Ponnan.
Read 5 mistakes to avoid when starting a small business
According to him, five important principles need to be remembered for your business to take off:
- Research and understand the market need – a good idea is not enough. The relevant industry needs to be researched thoroughly, entrepreneurs must know who their competitors are and identify potential customers.
- Businesses need solid plans – Business plans must be as detailed as possible in terms of operational cost, revenue projections and marketing strategies that will best fit the business, as well as a detailed report of potential risks.
- Minimum capital required – In the digital age, many companies are able to start off with little to no capital thanks to the Internet. This can alleviate the pressure to pay back loans or investors. Keep costs low before approaching banks or investors to grow the business.
- Become a jack of all trades – When starting the business, attempt to cover all bases on your own before outsourcing consultants. This approach will allow you to personally learn your entire business as well as keep costs low.
- Cash is king – Always manage cash flow carefully to ensure the business operates smoothly and avoid debt. Always be prepared for unforeseen expenses.
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