Entrepreneurship 101

What kind of business should I start?

To answer this question, you need to first identify a problem to solve. For example, if you see people selling mangoes, you cannot automatically conclude that there is a business opportunity in mango trading.

But if you discover a group of unhappy mango lovers who require a reliable supply of specific mango varieties then you have a market problem and an obvious solution. However, the solution rarely is simple to execute. Your ability to supply the right mango at the right price and the right place for these mango buyers is a top notch business skill.

Now think about all the unhappy buyers in food markets, schools, hospitals, construction, banking, insurance, entertainment etc.

How do I fund my idea?

From Year 1 to Year 3, personal savings or loans from family and friends will likely be your primary source of funding. Bank loans will be the likely next source of funding but your margins will have to be high to benefit from this option. Seed funding from equity investors is easily available for innovative future proof ideas in specific sectors. This means very few startups actually get funded.

Do I have to resign from my job?

Keep your job if you do not have a minimum viable product and zero market traction. Why? If no one wants to pay for your product or invest so that you can establish product/market fit, you will be very broke and hate entrepreneurship. If your employer is supportive (most aren’t), you can take a sabbatical or unpaid leave to do this.

Even with your employer support, prepare 6 month to 2 years’ worth of savings before you take the plunge and make sure to call us if you do so.

When do I start paying taxes?

The way tax works is that you start paying immediately when you have established a business identity and when you make sales. There are also other reporting requirements that you will need to take care of annually even when you are earning nothing. Yes. Even negative figures.

How many times should I fail until I quit?

Everytime you fail, your chances of success in the next venture is higher than the previous round. So fail as much as you can if you are making better decisions.

However, entrepreneurship is not for everyone. If you feel no thrill or passion from the process and the risk made, you will never be able to stay long enough for a break through. Also, it only gets more challenging when you start growing your revenue and making profits. So know when to stop and live your life. You are still an awesome human being.

What if no one supports me?

You will lose friends for sure and family members may or may not laugh at you. But you will live. Make sure to call us too, we will support you and connect you to like-minded people.

Your mental health is very important for your journey so stay positive and grounded.

What should I look for in a business partner?

1. Valuable skills
2. Common values
3. Time

Should I get an office?

It depends. If you are not making food, medicine or anything that could explode, you can start your business at home. Just inform your landlord and consult your local government authority. Also, book your client meetings at quiet coffee shops.

Over time, you might want an office to separate work from your personal life and comfortably host clients for meetings. You cannot bootstrap forever.

How do I name my business?

Your business name should be simple, meaningful and memorable.

Avoid trying to cram everything you will do in the name. Also remember to always test with friends and clients for feedback before you register it as a trade name.

Should I register as a limited private company?

It depends. If it is a small business with minimal risk and turnover growth then you are better off as a sole proprietor. If you will be exposed to a substantial level of risk, experience high revenue growth and require equity financing then you will need to incorporate your business.

Sole proprietorships usually are taxed using presumptive rates while limited companies are subject to corporate tax and other statutory requirements.