BUSINESS MANAGEMENT FOR START-UPS – AN INTRODUCTION

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BUSINESS MANAGEMENT FOR START-UPS – AN INTRODUCTION

WHY THAT?

I HAVE WATCHED A LOT OF SMALL AND MICRO BUSINESSES IN GHANA SINCE I AM RESIDENT HERE. ESPECIALLY, THERE WERE A NUMBER OF PETTY TRADERS AMONG THEM. MANY OF THEM COLLAPSE EVEN AFTER A FEW MONTHS. WHAT ARE THE REASONS BEHIND THE COLLAPSES?

THE REASONS FOR THESE ARE SIMPLY FUNDAMENTAL. MOST OF THE TIME THERE IS AN IDEA, BUT THE FOLLOW-UPS TO THESE IDEAS ARE LACKING.

IT STARTS WITH THE QUESTION WHETHER THE IDEAS ARE FEASIBLE. THERE ARE, E.G., A LOT OF PEOPLE WHO SELL SECOND-HAND DRESSES. IS IT PROFITABLE IF I JOIN THE QUEUE OF SECOND-HAND SELLERS THEN?

AFTER THAT, THE SECOND STEP IS A BUSINESS PLAN. HOW MUST I ORGANISE MY BUSINESS? APPARENTLY, THE BUSINESS PLAN HAS TWO FUNCTIONS.

  1. TO CONVINCE FUTURE BUSINESS PARTNERS AND FINANCIERS LIKE BANKS, ETC. THAT THE BUSINESS WILL BE SUCCESSFUL.
  2. TO GIVE YOURSELF AN OVERVIEW WHICH TARGETS YOU HAVE TO REACH, AND WHAT TO DO BEST TO REACH THEM. ESPECIALLY FOR THIS FUNCTION, YOU SHOULD REVIEW THE BUSINESS PLAN AT LEAST EVERY SIX MONTHS.

YOU CAN DOWNLOADBUSINESS PLAN TEMPLATES FOR START-UPS FROM THE INTERNET. THEY WILL GIVE YOU A GUIDELINE FOR A SUCCESSFUL BUSINESS PLAN.

THERE ARE MANY COMPONENTS IN THE BUSINESS PLAN WHICH ARE OF IMPORTANCE. BUT. PERHAPS THE MOST IMPORTANT, ESPECIALLY FOR A MICRO START-UP BUSINESS, IS THE FINANCIAL PLAN. FIRST OF ALL, YOU MUST FIND OUT WHERE YOU GET THE START-UP MONEY FROM. IF YOU DON’T HAVE THE NEEDED MONEY AVAILABLE YOURSELF, TRY TO GET SOME FROM FAMILY MEMBERS OR FRIENDS. (BE CAREFUL THAT YOUR BUSINESS WILL REALLY BE SUCCESSFUL THEN. IF NOT, IT MIGHT DESTROY YOUR RELATIONSHIPS.)

UNDER THE GIVEN FINANCIAL CIRCUMSTANCES, IT IS NOT ADVISABLE TO TAKE A LOAN FROM THE BANK. THE INTEREST RATE YOU WILL PAY FOR THE LOAN IS SIMPLY TOO HIGH. IMAGINE THE PROFIT MARGIN YOU HAVE TO REACH IF YOU ALREADY PAY 25-30% INTEREST ON THE LOAN YOU TOOK.

IF YOU REALLY HAVE A GOOD BUSINESS IDEA, YOU MIGHT LOOK FOR AN “ANGEL INVESTOR”. THOSE ARE PEOPLE WHO MIGHT INVEST IN YOUR BUSINESS. APART FROM THAT, THEY ALSO GIVE YOU MANAGEMENT ADVICE. YOU CAN FIND ANGEL INVESTORS ONLINE EITHER ON https://angel.co/ghana/investors OR http://www.quickangelsghana.com/

ANOTHER ISSUE IS THAT YOU SHOULD NOT TAKE ANY MONEY OUT OF YOUR BUSINESS FOR YOUR LIVELIHOOD. THAT MEANS THAT AT LRAST FOR THE START, YOU SHOULD HAVE ANOTHER MEANS OF INCOME. IF NOT, YOU WILL SURELY JEOPARDISE THE FINANCIAL SUCCESS OF YOUR BUSINESS.

THE SECOND IMPORTANT PART OF THE BUSINESS PLAN IS THE MARKETING PLAN. YOU MUST KNOW HOW TO BRING YOUR GOODS OR SERVICES TO YOUR CUSTOMERS. AN IMPORTANT ROLE HEREBY PLAYS THE WEBSITE. IN THE DIGITAL AGE, THIS GIVES YOU THE OPPORTUNITY TO REACH A WIDER NUMBER OF CUSTOMERS, EVEN ACROSS BORDERS.

THERE ARE MANY OPPORTUNITIES TO GET A NICE, SIMPLE WEBSITE FOR AN AFFORDABLE PRICE. GHANARESEARCH CAN DEVELOP SUCH A WEBSITE FOR YOU.

THIS IS WHY ITHINK THAT THIS ARTICLE “BUSINESS MANAGEMENT FOR START-UPS – AN INTRODUCTION” IS IMPORTANT FOR YOU.

REALISING THE NECESSITY TO LAY FOUNDATIONS, GHANAR.ESEARCH WILL ALSO OFFER A BASIC BUSINESS MANAGEMENT COURSE. THIS WILL BE AVAILABLE FROM BEGINNING OF NEXT YEAR ON https://www.education.ghanaresearch.org

FOR THE MEANTIME, YOU CAN DOWNLOAD THE BOOK AT THE BEGINNING OF THIS ARTICLE. IT GIVES YOU AN OVERVIEW ON CURRENT ISSUES OF BUSINESS MANAGEMENT FOR START-UPS.

ENJOY THE READING, AND MUCH SUCCESS WITH YOUR BUSINESS!

 

 

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