Unemployment has become rampant in Kenya most especially among the youth. This has left most of them with the option of becoming entrepreneurs or rather being self-employed.
Venturing into business is a challenge to this group because some graduate with courses not related to business hence below tips by Forbes article will help an upcoming entrepreneur;
1. Determine Your Business Concept.
You have to conclude what you want to focus on. Before concluding, you can ask yourself a few questions so that you can settle on something you won’t regret in the long run. You can ask yourself: what do I love doing? What do I do with no struggle? What do my friends compliment me about my strengths? Asking yourself these questions can help you conclude what you want.
2. Research Your Competitors and Market.
After deciding what you want, you should go ahead and know how the market is operating and your competitors. So that you can deal with competition, you can research what is being offered by other entrepreneurs. With this, you can know what to improve on so that your products can also sell or rather offer good products at a cheaper price. With the market, ask people what they want, don’t rely on what has been said in the past.
3. Create Your Business Plan.
This is simply coming up with a document that gives the roadmap to how you want your business to run and progress as it grows. With a business plan, you can easily spot potential problems before you even start venturing into a business. If it’s a business that requires a lot of financing, you can your business plan as a way to attract potential investors or even be proof to organizations that give out loans that you are serious about what you want to do.
4. Choose Your Business Structure.
A business structure is one that simply categorizes your business so that you can know how to run it. Business structures include A Limited Liability Company, a sole proprietorship, and a corporation. Knowing what structure you will consider using is beneficial so that you can weigh the pros and cons of each one of them and decide on one of them.
5. Register Your Business and Get Licenses.
Before registering you should first come up with a business name that has not been registered by someone else to avoid legal charges. You should choose a name that is unique and easy to be remembered by people. After deciding on the name you can now register and apply for an employer identification number, submit it and you will receive it in minutes. You should also check with your local government for licencing information tailored to your area to get the legal requirements needed in order.
6. Get your finances in order.
Know the start-up costs of your business. Check on the prices of any equipment you may need, any professional services that need to be paid for, and so forth. Most businesses, don’t make a profit in the first months and so it’s good for an entrepreneur to have money to run the business for at least six months. Also, it is mandatory to separate your account from your business account. This helps in using finances in the business account to run your business and also the bank can track records before maybe giving you a loan. Even as an individual, it helps you in tracking records and avoiding using your finances.
7. Fund your business.
You can fund your business to facilitate all that is needed. You can decide to use your savings, and credit cards or ask family and friends to support you. You can also consider taking small business loans and grants. Before deciding which funding to settle on, consider the amount of money you need, the time frame for repayment, and your tolerance for risk if things don’t work out as planned because with loans you have to repay the debt even if you get losses.
8. Apply for Business Insurance.
You need to insure your business considering the risks you face. The type of insurance depends on your business model and it is usually advisable to consult professionals dealing with insurance. You might also need more than one type of policy.
9. Market your business.
Many people start businesses but forget to market them thus not making a lot of profit. You can consider the following to market your business: Create a website where you are going to have information about the business there and so much more. After creating a website, develop a search engine such that when a potential customer searches for specific keywords of your products, the search engine can point them to your site. With the digitalization of almost everything, you can also consider using social media to your benefit by creating relevant content for example answering questions in videos and doing demos for your products.
10. Scale up your business.
When you have that whole process, and things are going as planned, you can consider taking your business to higher heights by maybe employing more people or improving market strategies.
BY MARGARET MUGO