1. Understanding the industry, not the market
Most Kenyans know their industry profoundly and have the knowledge or skills in their product or services. But most importantly, the critical factor that determines their success or failure is a simple question: Will people or companies pay for your product or service?
This product-market fit can sometimes be tested in a small way. For example, Smokies. Want to sell smokies? Try selling a few commodities in different areas to figure out if customers will accept it. It is risks free and the best way to test the market.
Bottom line its the industry that remains, the market varies over time. You want to kick off right and last for long? Understand the industry.
2. Falling in love with the idea.
Successful businesses are run by people who understand that things don’t always go according to plan. Being able to change your approach, in small and large ways — a move sometimes called a pivot — allows the product or service to find its market and, eventually, success.
3. Inadequate capitalization
Also known as “money,” capital is what partners, shareholders or business members contribute in exchange for ownership in the business. Some like to say they started small fortune, but in every industry, lack of money is the number one cause of failure. Sufficient capital is hugely advised when starting a business.
4. Do not plan only for success
Every entrepreneur dreams big but sometimes doesn’t go as we wish. In order to be successful, a new business needs to remain flexible in its processes and develop easy-to-understand contingency plans in case the idea isn’t as big of a hit as expected. Loans here comes as a disadvantage because it is hard to service it when the business fails.
Success or failure is determined by many factors. Believe me or not, luck is a factor. ALWAYS HAVE A RECOVERY PLAN. Recover your capital.
5. Business Permits and Relevant Licences
This is Kenya. Remember to subscribe to the government’s and county governments licenses or the police will always be at your door disturbing the smooth running of the business.
6. Friendship in Business
Alot can be said here but i have only one thing to say.
A friendship founded on business is better than a business founded on friendship.Of course when it comes to business matters only
These are just some. Contact us for more tips on startup.
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