Are you in business, how is your business doing? Many people are into businesses that are struggling today because they were convinced by different circumstances to start this business.
According to research 45% of people who start a business are either convinced by what they see or what other people say about the business. This has been the behavior among Kenyans that when a friend starts a certain business and seems to be profitable then they also look for some funds to begin this business.
Robert Amutabi has started four different types of business in a period of 10years but all have ended up collapsing, He says his first business was a hotel in Nairobi’s Central business district but after one year his business was frustrating him with a lot of debts he owes his suppliers,
Amutabi borrowed the idea from his former Colleague that they used to work together, his friend had left the job to start a hotel business along Lang’ata road, and while on his frequent visits to the hotel he borrowed the idea.
After realizing that the hotel business was not returning profit he decided to quit being a hotelier and started a cloth line in Eastleigh again He could not compete with the kind tycoons in Eastleigh.
After four years Amutabi had already got engaged in three businesses that bowed no fruits, he recalls seeking the advice of a financial advisor who helped him realize his dream in Business.
Many people entering the business are making this kind of mistakes that Amutabi made, another good example was of a landlord in Kanduyi Bungoma after construction a very nice commercial premise he gave it a tenant who set up a very nice club that became very popular in the region and when the lease came to an end the owner of the commercial premise refused to renew the lease and instead decided to begin a similar business.
After a short period, his business collapsed and he was forced to shut down, until today that place has never been lively again. What this person didn’t know was that his business was building the premise for commercial use.
The business has some dynamics that one requires to understand before he or she ventures into it, you need to Identify a few important steps.
1. Have ideas and goals
Ensure you have an idea of what you want to do in business. If you want to start a clothing business then have an idea of where you want to start your business on top you should have goals like where you want to see your business in the next five or ten years.
2. Do market research
Get to know where you can be buying clothes, remember you are in business, and being in business is to make a profit so that you can survive so getting to know where you can acquire your products at a cheaper price can be ideal
3. Identify your target Customers
In business, customers are very important, getting to know your customers will help you to have the best times in business. If you deal with baby clothes then your major customers will be mothers ensure you build a good relationship with mothers who are your customers. Ensure in your stock baby clothes and those for women do make the first appearance when a customer.
4. Seek Financial advice
Everyone in business particularly those in small market enterprise SMEs has financial challenges and therefore needs financial advice from experts, sometimes it’s not advisable that all the profit you make in a business is taken back to business and a times profit made should not be saved.
Most people do mistakes in taking loans to start a business with, it’s very risky, loans are advisable if you want to expand your business.
It will be the end of struggles if you follow simple steps, never make mistakes of coming up with a business that you have an idea from your friends, the kind of skills that you possess are the business that you own