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Test-running a business for sustainable success
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Tony has been itching to launch his business. His determination to succeed has made him to seek counsel from Shina, a very successful businessman. Shina tells him to apply caution because quality preparation prevents poor performance. He reminds him of the quote by Mario Andretti: ‘Desire is the key to motivation but it is the commitment to excellence that will enable you to attain the success you seek.’
Shina also explains that, “Excellence in product and service delivery is often a function of prior preparation done by the promoters of the business. Mediocrity often comes as result of shoddy preparation. While one should not be too slow in the pursuit of a goal, speedy accomplishment should never be at the expense of excellence.”
After making all the possible preparation he knows, Tony decides to resign his appointment at the company he is currently employed. It is a plum job with a fat salary and many benefits. He and his family have lived a very comfortable life based on that income. But he is tired of simply dreaming of the success of his business idea. He believes that dreams become reality when a person wakes up and work hard at it, so he must take the plunge and the sooner the better.
Stepping out of paid employment
He calls Shina and tells him, “I am going to tender my resignation letter. My own business registration will soon be completed. But I want to talk to you because the thought of taking that plunge makes me feel feverish.”
“I understand,” Shina says. “It’s usually like that when one decides to leave a plum job for the unexplored waters of self-employment. We can meet at lunch time same place to talk.”
Part-time
At the restaurant, Shina tells him, “If after all your preparations, you are still scared to take the plunge out of paid employment into self-employment, you definitely would have to take that plunge but explore some other options. Boldness is not the absence of fear but the determination to forge ahead in spite of the fears. You can test-run the business. That way, you can still hold on to a job and start the business on part time on a smaller scale.”
Tony raises an eyebrow, “With my current work schedule, that would not be possible.”
Shina nods. “Alternatively, you can apply for another job with less time demands even if it means lesser pay so as to have time to run your own business. To realise a dream, you have to make sacrifices. Settling for a lower pay in another job so as to test-run a business will make you less jittery than diving into the unexplored water of a business full-time.
Need for test-running
The reason you are still scared is because you are about to go into an area that is unexplored. Someone who has worked in an industry for many years and intends to start a business in that field would not or should not be jittery. This is even more so if he has worked in different areas within that industry.
If a prospective entrepreneur has not worked in the field he intends to launch a business but knows veterans in such a field that he can talk to and learn from, he would be more confident. But when one is launching into a field of business or product that is yet a new entrant into the market, then all his research are basically projections. Projections are not realities but an attempt to predict what should happen. In that case, it is advisable to test-run the business.
Test-running a business will give you the advantage of getting first hand experience and learning from mistakes while still within the comforts of paid employment. Also, you will be safeguarding fortunes which may be your money or the money that people gave you for the business in trust. It is still better to be able to return people’s money to them than have to explain that it was consumed in a business because the unexpected happened. Even if you can afford it, losing money is never a good thing to happen to anyone especially if it is preventable.
Even if a prospective entrepreneur is not in any kind of employment, it is still better to test-run if he has no experience in that field and does not know anyone that he can learn from. Test-running a business involves starting at the smallest scale possible, cutting costs and mitigating the risks. After test-running for sometime, you will be able to know if your business idea is workable and how it would work. You will also have established contacts and know people that can be trusted and that you can work with.
By the time you go all-out into self-employment in that field, you would have tested the waters you are diving into and know how deep it is. You would also have developed your entrepreneurial muscles. Then you will swim in the waters of full-time self-employment not as an amateur but as a professional.”
Handling employers
Tony is relieved. “That’s great Shina, test-running a business is really a good idea but what about employers, they may not allow it.”
“Some employers do not mind employees being engaged in a business as long as it does not affect the employee’s job. They may even appreciate it as entrepreneurship should enhance an employee’s initiative and skills. But some other employers may detest the idea. They may have their reasons. The underlying principle is that when you are about to walk out of a place, do not make enemies out of the people you are leaving behind. Mike Murdock says, ‘When you walk out through a door, do not slam the door behind you. You may need to walk back through that same door.’ Former employers and colleagues can become allies to you in business, don’t estrange them. Networking is an important aspect of a business success, the more people in your network, the better.” So, if it would cause a serious strain between you and your current employer, it is better to leave while the relationship is still cordial.
Reduce expenses
“So how can one test-run a business?”
“When test-running a business, you can lease rather than buy outright certain equipment especially those that have huge costs. Purchasing some equipment tie down funds that could be used in generating more money. You can buy shares in the business name with unused funds since you are starting at a lower scale than you planned. You can also invest the funds in other worthwhile venture if the returns would be very low if everything is invested in the business.
Some business people have purchased equipment at the launch of their businesses that did not yield much returns and tied down huge capital. If however you believe that buying such equipment would be more profitable for the business but you do not always make use of it, consider the possibility of renting it to maximise the returns on it.
Outsource
Rather than employ every staff on full-time, outsource operations of the business as much as possible. You can also take people on part time or engage people such as students who live and school nearby. If you must employ anyone on full-time, ensure that it is absolutely necessary.
Location
Operate the business from home or get a friend or relative to give you a place free. If you cannot get that, share a space with another business and split the rent and other bills. If you must get a place on your own, pay for a short period at a time.
Acquiring skills
For a person already employed in a field similar to the business he wants to launch, he should ensure that he learns as many different aspects as of the industry as possible. If he is not already involved in such a field, he can leave his current employment to take up another job to get the experience for his business as part of preparation towards the launch of the business. He should look for a job that would be as close as possible to the field of business he wants to go into.
He should see to it that the job does not confine him to one area. He may need to put in more time and efforts than the remuneration he is getting, but he should keep in view his dream. So, he should not feel cheated at putting in more than he is getting.
Specialisation is good. You can become well-known in a particular area but versatility- the ability to handle different tasks is also very vital. Versatility is more an advantage to an entrepreneur than specialisation, especially at the early stages of a business. Entrepreneurship is only worth it when you succeed so you must be ready to make sacrifices to bring your dream to reality but do it wisely.
Shina also explains that, “Excellence in product and service delivery is often a function of prior preparation done by the promoters of the business. Mediocrity often comes as result of shoddy preparation. While one should not be too slow in the pursuit of a goal, speedy accomplishment should never be at the expense of excellence.”
After making all the possible preparation he knows, Tony decides to resign his appointment at the company he is currently employed. It is a plum job with a fat salary and many benefits. He and his family have lived a very comfortable life based on that income. But he is tired of simply dreaming of the success of his business idea. He believes that dreams become reality when a person wakes up and work hard at it, so he must take the plunge and the sooner the better.
Stepping out of paid employment
He calls Shina and tells him, “I am going to tender my resignation letter. My own business registration will soon be completed. But I want to talk to you because the thought of taking that plunge makes me feel feverish.”
“I understand,” Shina says. “It’s usually like that when one decides to leave a plum job for the unexplored waters of self-employment. We can meet at lunch time same place to talk.”
Part-time
At the restaurant, Shina tells him, “If after all your preparations, you are still scared to take the plunge out of paid employment into self-employment, you definitely would have to take that plunge but explore some other options. Boldness is not the absence of fear but the determination to forge ahead in spite of the fears. You can test-run the business. That way, you can still hold on to a job and start the business on part time on a smaller scale.”
Tony raises an eyebrow, “With my current work schedule, that would not be possible.”
Shina nods. “Alternatively, you can apply for another job with less time demands even if it means lesser pay so as to have time to run your own business. To realise a dream, you have to make sacrifices. Settling for a lower pay in another job so as to test-run a business will make you less jittery than diving into the unexplored water of a business full-time.
Need for test-running
The reason you are still scared is because you are about to go into an area that is unexplored. Someone who has worked in an industry for many years and intends to start a business in that field would not or should not be jittery. This is even more so if he has worked in different areas within that industry.
If a prospective entrepreneur has not worked in the field he intends to launch a business but knows veterans in such a field that he can talk to and learn from, he would be more confident. But when one is launching into a field of business or product that is yet a new entrant into the market, then all his research are basically projections. Projections are not realities but an attempt to predict what should happen. In that case, it is advisable to test-run the business.
Test-running a business will give you the advantage of getting first hand experience and learning from mistakes while still within the comforts of paid employment. Also, you will be safeguarding fortunes which may be your money or the money that people gave you for the business in trust. It is still better to be able to return people’s money to them than have to explain that it was consumed in a business because the unexpected happened. Even if you can afford it, losing money is never a good thing to happen to anyone especially if it is preventable.
Even if a prospective entrepreneur is not in any kind of employment, it is still better to test-run if he has no experience in that field and does not know anyone that he can learn from. Test-running a business involves starting at the smallest scale possible, cutting costs and mitigating the risks. After test-running for sometime, you will be able to know if your business idea is workable and how it would work. You will also have established contacts and know people that can be trusted and that you can work with.
By the time you go all-out into self-employment in that field, you would have tested the waters you are diving into and know how deep it is. You would also have developed your entrepreneurial muscles. Then you will swim in the waters of full-time self-employment not as an amateur but as a professional.”
Handling employers
Tony is relieved. “That’s great Shina, test-running a business is really a good idea but what about employers, they may not allow it.”
“Some employers do not mind employees being engaged in a business as long as it does not affect the employee’s job. They may even appreciate it as entrepreneurship should enhance an employee’s initiative and skills. But some other employers may detest the idea. They may have their reasons. The underlying principle is that when you are about to walk out of a place, do not make enemies out of the people you are leaving behind. Mike Murdock says, ‘When you walk out through a door, do not slam the door behind you. You may need to walk back through that same door.’ Former employers and colleagues can become allies to you in business, don’t estrange them. Networking is an important aspect of a business success, the more people in your network, the better.” So, if it would cause a serious strain between you and your current employer, it is better to leave while the relationship is still cordial.
Reduce expenses
“So how can one test-run a business?”
“When test-running a business, you can lease rather than buy outright certain equipment especially those that have huge costs. Purchasing some equipment tie down funds that could be used in generating more money. You can buy shares in the business name with unused funds since you are starting at a lower scale than you planned. You can also invest the funds in other worthwhile venture if the returns would be very low if everything is invested in the business.
Some business people have purchased equipment at the launch of their businesses that did not yield much returns and tied down huge capital. If however you believe that buying such equipment would be more profitable for the business but you do not always make use of it, consider the possibility of renting it to maximise the returns on it.
Outsource
Rather than employ every staff on full-time, outsource operations of the business as much as possible. You can also take people on part time or engage people such as students who live and school nearby. If you must employ anyone on full-time, ensure that it is absolutely necessary.
Location
Operate the business from home or get a friend or relative to give you a place free. If you cannot get that, share a space with another business and split the rent and other bills. If you must get a place on your own, pay for a short period at a time.
Acquiring skills
For a person already employed in a field similar to the business he wants to launch, he should ensure that he learns as many different aspects as of the industry as possible. If he is not already involved in such a field, he can leave his current employment to take up another job to get the experience for his business as part of preparation towards the launch of the business. He should look for a job that would be as close as possible to the field of business he wants to go into.
He should see to it that the job does not confine him to one area. He may need to put in more time and efforts than the remuneration he is getting, but he should keep in view his dream. So, he should not feel cheated at putting in more than he is getting.
Specialisation is good. You can become well-known in a particular area but versatility- the ability to handle different tasks is also very vital. Versatility is more an advantage to an entrepreneur than specialisation, especially at the early stages of a business. Entrepreneurship is only worth it when you succeed so you must be ready to make sacrifices to bring your dream to reality but do it wisely.
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