In these hard economic times of layoff and slow business, everyone is coming up with business ideas that will help raise the needed cash to meet their expenses.
The rise of car -boot grocery stall in estate and major roads is just but one-way Kenyans are adjusting to the economy in the COVID 19 times. Today we look at the bad ideas floating around for entrepreneurs.
Never outsource funds
This is one of the bad ideas for funding thrust on entrepreneurs. While it is not bad ideas to have some of your cash in the business but it will not hurt to have external funding such as angel investors, venture capital, and crowdfunding.
After all, if you can get external funding it only means someone else believes in the business just like you. The added responsibility means that you will be more prudent in handling external funding.
Such funding will only come with a great business plan that investors buy.
Everyone is doing this
Do you remember the quail egg business in Kenya a few years ago? Well, Kenyans jumped into it afterword went round of the enormous riches attached to the rearing of quails.
Some quit their jobs only to regret. Just because you know of someone doing well with a shop, grocery or salon is no reason to jump into it
Go all the way in the beginning
Start-ups end up failing as many tests the depth of the river with both feet. As a precaution, one should not go full force into new business despite the perceived outcome.
Taking it slow to learning to dot the i’s and cross the t’s is key. The initial hurdle of going full force may force one to sink deeper into debt or trouble thus giving up eventually
Be worried about what might go wrong
The world is full of skeptics who will tell you all that could go wrong in business. They will discourage you from flying stating statistics of flight crashes; discourage you from driving or even cycling. You may never go anywhere if you listen to them. Being confident in yourself and belief in your business ideas is most important before you tag others along to your dream idea.
Ignore your intuition
The worst advice is to ignore one intuition in business. This is information collected and processed at the subconscious level. The decision is mostly based on hard data but ignoring intuition outright is wrong
One needs to do research to validate the feeling or write them off.
Spend less than you make
This sounds like good advice but in-depth it is outright wrong. The approach to spending less than you make encourages one to approach finance with a survival mindset. Just like one who pays expenses first then saves. By saving first, you push yourself to meet your expenses thus growing your revenue streams. By changing the business goal to make more than you spend will one be able to grow business.
Passion over money
Having a passion for the business is not enough as running it takes a toll on one’s energy due to the long hours and dealing with lots of people. Passion will only get you to a certain point after which one has to persevere. Hope going to business is genuine enough to take you to enable you to persevere the hard times.
Watch your staff
Having staff under tight control is the worst advice one can receive. While it is good to manage, micromanaging makes the staff feel under no freedom apart from tiring oneself. Know what is going on but let people do their job and grow their talents to the best of their ability.