Advice and business steps for new entreprenuers

What would be the best ‘pre-requisite’ advice I would give to would-be entrepreneurs or to entrepreneurs who are struggling in their new businesses?

Here is my advice:

‘Before starting a new business, ensure yourself to have a sales track record of the products or services you intend to sell’. In other words, it is strongly recommended to have a level of pre-experience in selling and managing the product and service intended for sale.

Unreal business writers ,who romanticized entrepreneurship, often state that passion is everything an entrepreneur needs to succeed…At Higher Capital M.C. we beg to disagree. Hundreds of businesses initiated by passionate and vigorous people are closing their doors on a daily basis due to a lack of experience, knowledge and strategy.
Passion does not pay the bills. Passion will never pay the bills. Though it sounds harsh, many businesses have learned that truth when hard times hit them in the face.

I often advice people wishing to start their own business to learn the ropes in a workplace as an employee before owning their affairs.
For example, if an individual wishes to own a restaurant, it would be advisable for him/her to learn about the industry by working as an employee (whether be as a waiter, chef,….) for another restaurant owner. If an individual wishes to open a college, it would be advisable to first gain experience by working in a college owned by another person.

That way, aspiring entrepreneurs protect themselves with a level of experience and knowledge.

A good example to illustrate my point can be taken from Zimbabwe: ‘in the early 2000’s, former President Robert Mugabe took away the agricultural land owned by white farmers and gave it to the native Zimbabwean in view to bring economic transformation. But most of the new land incumbents had no farming experience or knowledge. As a result, the national food production failed so low that the entire Zimbabwean economy was torn apart. If anyone takes the time to watch the archive footage dating back from the early 2000’s, they will notice the passion driving the then government and its people to expropriate the land. Did passion help them manage those expropriated farms? No, absolutely not.’

What if the job market is saturated?

This kind of scenario may well occur in societies similar to our South African society. If the job market is saturated, I advise aspiring entrepreneurs to work on a volunteering basis for an expereinced business. In such case, the aspiring entrepreneur is not forced to work full time but he/she can volunteer to work one day a week for a short period of time. For example, a lady with no experience but with capital and who aspires to open a beauty salon, may well volunteer to work in an existing saloon four Saturdays per month to learn about: hair trends, customer service, bookings, operational costs, management…Once she finishes learning the basics after a month or two, she can start her journey and run her own saloon with a strong knowledge.
I know that some readers might say: ‘but we can’t work for free just to acquire knowledge!’

If you think that way, then let me ask you a question:
‘When you studied in primary, secondary or at university, did you get paid for it? Nope.Even worse, you were paying to learn… And yet you studied full time…So why not take the leap of a voluntary apprenticeship on a part time basis for a short period?

The major con of losing money through lack of experience and knowlegde:

On the other hand, it is possible that certain people started their own business without the learnership process acquired by working for somebody else. They were very young and some of them did well but they failed several times and they have lost more money than they have earned. Though their courage deserves praise, one should not underestimate that their money lost could have contributed to a bigger inheritance for their children… We cannot afford to constantly gamble away the prosperity of our future children by our inexperience and refusal to learn (you can tweet that).

What if someone is already in businees but struggling due to his inexperience?

We have an epidemy in South Africa whereas the government, with good intentions, has eased funding to aspiring black entrepreneurs in order to adjust the balance of economic power within our society. But in the process,not much was dedicated at up skilling and training them to handle big businesses. In spite of great efforts initiated by the government,70 to 80 % of businesses in South Africa still fall flat and close down within five years.

If someone is already in his own business but struggling due to a lack of knowledge, then we suggest that they take the effort of learning while running the business. One sure way would be to hire the service of a management consultant with proven experience in managing businesses (note that many self called business coaches are good at talking and yet have NEVER ran a business).
One has to be wise at discerning the difference between a motivational speaker and a management consultant. A motivational speaker will constantly flatter you with vague talks that can’t fit in an accounting book. A management consultant gives clear and concise directives for tangible improvement.

Knowing before starting a business, gives an edge allowing you to increase the certainty of your business direction.

People love the word ‘passion’ because the term offers the easiness that cannot be brought by words such as ‘hardwork’, ‘late-night’,’study’,’experience’, ‘learnership’.

Learn first then run it!