Do’s And Don’ts You Should Know Before Starting A Business
In a service business, your employee most likely dreams of having a similar outfit. A barber wants to have his…
Starting and running a business is not a walk in the park. It needs dedication and the will to always move on after every fall. Starting and sustaining a business is harder when you decide to start a business that you have no idea how it operates.
“There are businesses that only make financial sense if the owner is the operator or has domain experience. Like an Uber car. If you buy one, drive it to learn and understand,” opines Mr. Muthuri Kinyamu, a PR and Stakeholder Engagement Expert.
Any business in which you don’t understand the hidden dynamics don’t get into it. A business such as the wines and spirits, bars, and transport without a godfather cannot survive. You might find out your competition has rigged the game.
Only invest what you can lose. Or have that on the table “Ask the person putting in money, what if this doesn’t work out”. This is not being afraid but sizing up the risks and how people perceive failure. Says Mr. Muthuri in a well-elaborated Twitter Thread.
In a service business, your employee most likely dreams of having a similar outfit. A barber wants to have his shop one day and a driver will want to own a vehicle one day. Always remember no one goes into business with enemies but money can bring serious misunderstanding.
“Doesn’t matter if you’re going into it as a couple, friends, or colleagues. Just have structures and oversight plus a way of resolving disputes and decision making.”
Only invest in sectors you have expertise in or get a business partner with the domain knowledge equally vested. For instance, don’t open a pharmacy then hire an inexperienced white lab coat if you’re not a pharmacist or partnering with a professional.
Be cautious about things “that have money”. Do what you know. Start small. Don’t go all in round one. Anything that can make you tons of money can also clean you in one bad deal. Don’t be greedy. Don’t assume everyone else is stupid. If you’re feeling smarter than everyone else at that table, chances are you’re the idiot in the deal.
There’s only so much that lawyers can cover but don’t transact on trust alone. One party will feel they’re doing more or can go at it alone. Discuss exit options and business continuity. A business is not a marriage for better or for worse. People will leave and others come on board.
More on this Twitter Thread:
When you get some time, go to Buyer Beware on Facebook and look for the post where Kenyans were discussing lessons from their failed ventures and the type of businesses.
It’s basically remote/phone/Mpesa farming, clothing and Uber but let me break it down further briefly.
— Muthuri Kinyamu (@MuthuriKinyamu) January 31, 2022