What to consider before starting a small business
Seda adviser outlines vital first steps
With the job market shrinking and unemployment on the rise, The Rep has partnered with the Chris Hani Joe Gqabi Small Entrepreneur Development Agency (Seda) to encourage those without jobs to start their own small businesses.
One of the advantages of starting a small business is that it can provide opportunities for people from all educational backgrounds and levels of experience.
Whether someone has never finished school, is a new graduate or an experienced professional, there is the potential to start and run a successful small business.
By starting their own business, people can take control of their own futures and create opportunities for themselves and their communities.
According to Seda’s business adviser, Bayanda Mpahlwa, starting a small business has numerous advantages for individuals and the local economy.
These include their contribution to GDP growth and job creation. Mpahlwa said small businesses also fostered innovation and competition, and generated tax revenue for local governments.
However, before starting a business, Mpahlwa said it was vital to do one’s homework.
“There’s more to starting a business than having a great idea.
“Make sure it’s right for you. Be brutally honest with yourself: Ask yourself, are you the right person to start a business?
“Can you work long hours? Can you take pressure and criticism?
“Can you cope with financial insecurity? If your business struggled at first, would you keep going?
“Write down the reasons you are starting a business and decide whether it’s right for you.”
He said it was imperative that the product or service you wanted to offer was in demand.
If unable to identify an unmet need in the market, one could still bring a unique approach or perspective to an existing business model.
“Your idea doesn’t have to be new but it does need to differentiate you from your competitors.
“You also need to know that people will want or need it enough to buy it,” Mpahlwa said.
This was why it was important to conduct thorough research beforehand.
“Find out about your market, the demand, and your competitors.
“Talk to potential customers, suppliers, competitors, distributors and ex-employees of competitors.
“Test your idea and test the market.” This also included talking to potential customers, suppliers, competitors, and distributors.
This was a vital step before writing a business plan, Mpahlwa said, which will be covered in The Rep’s next edition, focusing on the second phase of starting a small business.