PLANNING YOUR IDEA

Location: what does your community or neighborhood need?
Many people in your neighborhood or community buy products and use services that they get from companies they don’t know or in other places. If you can start a business for people you know and / or in your neighborhood, you already have an advantage. What sort of goods and services does your neighbourhood or community need?

What extra value do you offer?
Is there any special value that your business will offer? Will it be sell goods or services that are already available to your neighborhood or community?

Be original

If you copy a business idea that is already being done in your neighbourhood or community, you will have to compete against a business that is successful. Because that business is already earning money, you will also have reduced opportunity to earn.

Ask the community if it is a good idea
When you have a business idea, ask people if they will use it. If they say no or have objections, the business will likely fail. Do not ask family or friends as they will tell you what you want to hear. Ask people who are strangers.

What experience, skills and knowledge do you have?
Don’t start a business if you don’t have the experience, skills or knowledge to run it. You may spend money to open the business then lose it and / fail while you learn.

What do you do best?
If you have experience, skills and knowledge use those in your new business to make the best success of it. If you lack  experience, skills and knowledge in one or two fields, find a partner who does.

What do you do best?
If you have experience, skills and knowledge use those in your new business to make the best success of it. If you lack  experience, skills and knowledge in one or two fields, find a partner who does.

EARNINGS, COSTS & FINANCE

Earnings
How much will your business be able to earn? Describe your product or service to people and its value, then ask them how much they will be willing to pay and wait for their answers. DO NOT name a price and ask if they will pay that. Wait for them to tell you a price. Do not ask family and friends in case they tell you what you want to hear rather than give truthful answers.

Running costs (overheads)
What you will need to pay to run the business? Include water, electricity, bandwidth and internet costs. Try to work from gome so you don’t need to pay rent and don’t hire staff before you know the business will succeed.

Starting costs
Work out what equipment and stock you will need. Try to buy secondhand equipment of borrow from family and friends to reduce the amount you need for finance.

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Do you need finance and / or how much?
If you need a lot of finance, you should rethink your business idea. Finance reduces your profits so less finance is better. Save on assets by using second hand equipment or borrowing what you can from family and friends. Do not use finance for running costs.

 

BASIC BUSINESSES TO THINK ABOUT

Selling
Is there anything that your neighbors cannot easily buy after hours? You many be able to start a small shop that resells items that you buy from wholesalers to sell when shops are closed. Bales of seasonal clothing may also be in demand.

Making
What do you know how to make? It might be clothes, pillows, pallet furniture, decorations cosmetics or wigs. Can you make money from preparing food or holding a braai.

Beauty
Beauty is always in demand. If you can do hair, nails and cosmetics for an event, you have an opportunity to do it from home or rent a chair in a beauty salon.

Building & repairs
Homes often need repairs and may need building services. Plumbers, carpenters, painters and electricians are in demand.

Other repairs
If you can repair vehicles, mobile phones, appliances, shoes and clothing, you should consider developing an informal enterprise.

Business services
Business services might include bookkeeping, human resource assistance, marketing and assistance with paperwork and admin for other small companies.

Urban gardening
If you have enough space to grow food, you may be able to produce more than you consume. If so, you can sell the surplus. You may also be able to bring in fresh produce from rural areas and sell that.

Entertainment
Can you assist with entertainment? You might be able to assist with decor, photography, being a DJ, selling food and drinks or running a braai. You might also try doing cosmetics at the event.

Social enterprise
What social services gaps are there in the neighborhood? Can you provide childcare or care for the elderly? If you are a teacher you might provide extra classes. If you are a registered nurse, can you provide primary healthcare services?