Since (I guess) profit and money is the reason why you desire to start a business, may I ask you, how do you think successful entrepreneurs make money in business? They do so by

● By giving value to people.

● By improving people`s life.

● By making the world a better place.

Things to keep in mind before starting a business

Unfortunately, we are living in a continent (Africa) where the rich are seen as liars, thieves and fraudsters. But the truth about making money is that, people who make a lot of money in business, first (I mean first) give values to people. Now if your intention is to make money in business (which I am sure it is), then, we have to start by identifying a value you can render for people to give you their hard-earned cash.

Money is very hard to get and people don`t just waste it on any product or service

… except such a product/service that adds value to their lives.

Think about any successful business owner today and you will discover that they become successful and wealthy

… simply because they render services (or create products) that are valuable to the humanity.

Let me give you an example. Facebook started by giving people a chance to connect with their friends and family, to meet new friends and to share their thoughts and views with the world.

That is a value. Because this service is so valuable, millions (and now over one billions) of people embrace facebook joyfully. Since there are so many people active on facebook at any giving time, the owners (Zukerberg and others) could sell adverts to people and become billionaires.

Your phone gives you a chance to make calls, send SMS and surf the net. That is a value.

What is the best time to start a business
 

You cannot possibly use the money you used to buy your computer to do the work your computer is doing for you. I mean, you cannot (for example) put Ksh.40,000 on a table and start typing words through it as I am using my laptops starting a business from scratch or buying an existing one? Setting-up an independent operation or owning a franchise? Working part-time or full-time? Each of these options has its advantages and disadvantages and, for the aspiring entrepreneur, each should be weighed against 

For example, if an entrepreneur is socially oriented then he or she should probably avoid businesses that demand long periods of solitude. Equally, those who enjoy working by themselves should avoid a business that requires much customer interaction. Similarly, entrepreneurs who work best in the morning (or evening) should gravitate toward a business that requires working during these times for self improment. And business owners that want to start small and stay small will have different needs and concerns than those who have plans to grow. With so many options available the following advice should prove helpful:

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Try a business first before starting one. ‘Before choosing a long-term career path, talk with people who have taken the same one,’ says the owner of Northwest Prototypes Ltd., in Manchester, England. ‘Or volunteer to work part-time in a similar business or industry to ensure that it’s everything you expect it to be,’ suggests the founder of Pamir Production Services in Warsaw, Poland. Another option is to discuss personal needs and abilities with family, friends, and colleagues. They may be able to help simply by stating the obvious. Whichever option is chosen, making a life-changing decision should not be done alone, particularly when it involves others. Ask for advice and opinions of those in the know.

− Would you be willing to spend a lot of money to have someone else set-up a business for you? If so, you may wish to consider buying an existing business or franchise. Note, however, that this does not make running a business any easier. The owner of a McDonald’s franchise in London, England, for example, says that she often stays in her office until ten o’clock at night completing the unending stream of paperwork that running a food service requires.

− How much time are you willing to spend on a business or idea? The amount of time it takes to learn a new trade or skill and get a new business venture up (and keep it up) is considerable. In effect, when starting a business, entrepreneurs begin their professional life all over again – from the bottom. For example, many years ago a friend of mine sold his dental laboratory. He spent years building it, but after too many long nights completing day-to-day business activities and keeping up with government regulations and insurance requirements - in addition to his regular lab work - he decided that he would rather have a nine-to-five job at a hospital so he could spend more time with his son.

The Options

Generally speaking, there are four types of business operations from which an entrepreneur can choose: Part-Time Businesses:

Most part-time enterprises operate during evenings and/or weekends. Since this type of employment is often an offshoot of a hobby or other interest, the benefits of working in this manner can translate into enormous job satisfaction. Other advantages include not having to leave another job and/or avoiding the financial risk of investing in a full-time business. Tax advantages are an additional bonus for part-time entrepreneurs if working from home can be claimed as a tax deduction. Part-time work also allows an entrepreneur to ‘test the waters’ of a potential full-time endeavor before taking the plunge, thereby providing valuable research and experience and possibly lowering risk. The disadvantages of a part-time business include the fact that the work the entrepreneur performs often falls behind other more pressing commitments such as a full-time job (which means that the part-time business may never fully function because enough time can’t be devoted to it). Additionally, businesses that operate part-time and require direct customer engagement provide customers with less time to purchase or partake in the product or service being offered. Lastly, a feeling of holding down two jobs can be unhealthy and possibly lead to marital or social problems.

Full-Time Businesses

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fall into three categories: Start-ups, Existing Businesses, and Franchises. A. The start-up business involves building a business from scratch (which often requires years of hard work). If successful, however, many entrepreneurs insist that the results are very rewarding. Much of this book deals with starting a business from scratch so it’s not necessary to go into details here. Suffice it to say that building a business from the ground up is the most time-consuming and arduous of an entrepreneur’s options. According to one self-made businesswoman, the difference between starting a business from scratch and buying an existing one is comparable to giving birth to a baby or adopting one that’s already been potty trained. Either way, hard work lies ahead. B. Buying an existing business is an alternative well worth exploring, however, before handing over hard-earned cash for a business that’s on the market it’s imperative to first know why it’s for sale. Several years ago, for example, two British entrepreneurs decided to buy a seaside enterprise that was on the market for £100,000. Fortunately, before any money changed hands, a licensed appraiser discovered that it was only worth £15,000 because it was unprofitable, it had no contracts to guarantee future sales, and the equipment that comprised it was outdated and beyond warranty. The moral of the story is that a sunny climate, a charming setting, or a misplaced romantic notion of business ownership are not valid reasons for buying (or starting) a business.

Franchising is a third entrepreneurship option.

The advantages of owning a franchise include being a part of a (supposedly) tried-and-tested operation that can regularly provide marketing and business assistance. Disadvantages include the fact that not all franchises are the helpful, license-to-print-money operations they claim to be.

Advice from the Pros When perusing available business ownership options, remember that the abilities, character, and needs of the entrepreneur should match the type of business the entrepreneur wants to run, the product being sold, and the customer base being served. The better the match the greater the chance of success and fulfillment.

− Know your strengths, weaknesses, skills, experience, and limits before going into business.

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Compare your options and your abilities with the needs of prospective customers before making any business commitment.

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Ensure that there’s a good fit with the product or service you wish to offer and the type of business you envision. For example, if you wish to start a part-time personal accounting service you may need to be available during more than just weekends and evenings.

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Get a full picture of local, state, and national laws

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as well as licenses and permits - before jumping into a new business venture. The industry you want to work in may be so overregulated that you may not be able to pursue exactly what it is you wish to do.

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Don’t forget to work out how customers will fit in to your business plans.

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Ask a lot of questions when buying an existing business. If possible, try to get the owner to commit (in writing) to providing assistance for a set period of time after the sale in order to ensure a smooth transition.

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Always check the background, present conditions, and the potential future of the business you wish to buy before signing anything.

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