Survival tips for start-ups

Of all the new businesses opened each year, only a small number of them will have clear business plans. With most people starting businesses “to make money and become rich”, the majority soon collapse as they do not have a strong base, and neither do the owners know the direction of their enterprises. According to experts, starting a business just to make money is one of the mistakes people make, arguing that money is only a “final brick to a well-planned house”. Any person out there who want to set up an enterprise must first invest in planning to ensure their investment follows a clear growth path and is sustainable. Planning lays the foundation for the success of any business; and one should have a plan at every stage of the business, not just during the initial stage, according to experts. Be it marketing, product diversification, or expansion, among others, the proprietor must have plans on how to execute them. With all these in mind, how does one ensure survival of their enterprise? John Mushimire, who owns small businesses and a food processing company in Nyarugenge District, underscores the importance of planning, especially prior to setting up an enterprise, saying plans are essential to steer the business through its initial stages. He says a business plan is a key guide for any entrepreneur. “There is no doubt that a plan is the back-bone of a business; a well-thought plan shows how the enterprise is likely to grow, the resources, possible challenges and input needed to achieve the set goals,” Mushimire explains. Mushimire advises small businesses to always study the market, find a niche and try and serve that market segment. “Since it’s hard to out compete big and established firms, it’s wise to use strategies that aim at exploiting what other businesses are ignoring. However, you must study consumer behaviour and desires, seek to satisfy them, and in a client-friendly way,” he counsels. For Josephine Kembabazi, a media and printing entrepreneur, survival of start-up businesses lies in their uniqueness, and service delivery strategies. “With the growing competition in business arena, businesses need to differentiate their products from those of competitors. They should also put in place efficient service delivery approaches to meet consumers’ needs,” according to the businesswoman with over six years of experience in the media and printing sector. Differentiation can be in terms of branding, packaging, or design, among others, which are environmental-friendly and appeal to customers. Small things like good customer care, home delivery, or even working extra-hours to meet different customers’ schedules, will give you an edge over competitors, she says. According to Jasmine Umurerwa, an entrepreneur in hotel and catering field, socialising and learning from business experts help start-ups to acquire new ideas to grow their ventures. “As a business, identify and understand the challenges and opportunities, and employ ideal strategies to help you exploit all of them to your advantage. That’s why networking is key as it enables one get information or new ideas that will help them find better ways of serving clients,” she says. Umurerwa urges start-ups to approach corporates or companies that are doing well in their given sectors to learn from their experience, gain knowledge, best practices, as well as get valuable connections. With these, a start-up stands high chances of survival if it applies them according to its needs and those of customers,” she says. Business seminars, conferences, trainings and retreats, are also reliable sources of good information for one to grow their business. Experts advise young enterprises to be flexible and dynamic to keep up with trends in the market to serve customers better and hence earn more to expand their ventures. It is important for any business, new, old, small, or big to minimise costs as the best strategy to survive the prevailing cutthroat competition. Rodrigue Mupenzi, an estate developer, says cutting costs is the first financial strategy for any enterprise. “As a new business, use the limited resources wisely, which is why you need to have a clear financial strategy,” he says. Mupenzi advises start-ups to avoid hiring unnecessary workers, besides watching their cost of operation generally. Effective organisation is also essential for a business is to survive. Experts and seasoned entrepreneurs say bookkeeping helps the business owners to monitor the status of the business. business@newtimes.co.rw What others say... Francoise Mugwaneza Francoise Mugwaneza Start-up businesses should exercise financial discipline, and provide great customer service, and be ethical. Customers are interested in businesses which consider their safety, exercise business ethics, serve them fast, and are reliable. That’s why start-ups must practice them to stay competitive. Gilbert Hategikimana Gilbert Hategikimana As they say, a journey of 1,000 miles begins with a single step. Therefore, for any business to succeed, it must first take that initial step – planning. One also needs to ensure that they do not use cash for the business to do things that are not related to the venture. Alex Nshimiyimana Alex Nshimiyimana One needs to do market intelligence on the services provided by competitors. What they are not offering that you can bring on board to attract new clients? Keeping records of transactions and business-related issues will help start-ups to do business better and grow Compiled by Dennis Agaba. (All photos by Dennis Agaba)

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Survival tips for start-ups