Before you spend your savings, answer these five practical questions. They can save you money and stress.
Many small businesses begin with enthusiasm and little planning. A short planning exercise before you start can help you avoid common mistakes.
1. Who exactly is your customer?
Describe the people you want to serve and what problem you solve for them. “Everyone” is not an answer.
2. What will it really cost?
List start-up costs and monthly costs: stock, rent, transport, electricity, packaging and your own time. Add a small reserve for surprises.
3. How will you price it?
Your price should cover costs and leave a profit. Compare with competitors, but do not compete only by being the cheapest.
4. How will people find you?
Word of mouth, a well-kept social media page, a clear sign and consistent quality all help. Ask your first customers for honest feedback.
5. How will you keep records?
Write down every sale and expense from day one, and keep business money separate from personal money. Records show what is working and make it easier to apply for support or loans later.
Start small, learn quickly and grow steadily.
