by Kathryn Main
Most people would list things like “money”, “a business plan”, or “an idea”. While you do need an idea and a plan, and whilst money is not a prerequisite to start a business, that is not the answer I’m looking for.
So, what do you need to start a business? You need a customer. You need people who are willing to pay you the correct value for your products and services. If you aren’t making a profit, and are making a loss, then either the quality of your product or the quality of your customer is incorrect.
So, before you throw yourself head-first into starting the business of your dreams, you need to test the market and ensure that there is a market for your new business. Testing the market is one thing. Testing yourself is another matter entirely. If you have always been an employee that has had support structures in the organisation, not having those support structures (like free IT support, access to printers and equipment, free WIFI, a laptop, etc.) can be quite hard to digest.
Being an entrepreneur is exciting, as it requires and develops skills like tenacity, open mindedness, creativity, adaptability, strong work ethic and more. Making sure that you have enough money in the bank each month to cover your own salary and business costs is not a responsibility to be taken lightly. Most people are less than 3 months away from bankruptcy due to a low saving culture and buy-now-pay-later mentality. This mindset causes huge financial distress when monthly expenses aren’t met.
So, before you dive into starting your business, ask yourself these questions:
“Do I have an entrepreneurial mindset?”
“Am I ready to take a risk on myself?”
“Do I have the tenacity and grit to undertake this challenge?”
Make no mistake – running your own business is not for sissies. You are going to make mistakes, you are going to lose money (not always, but everyone does at least once), you will experience bad paying customers, you will go through ups and downs. Each day will present new challenges as you work on every area of your business.
Are you ready to become the salesperson, the customer support, the marketing expert, the finance manager? These are all hats you will need to wear, and roles you will need to play in order to make sure your business is running effectively.
I’m not trying to scare you; I really want you to think about the kind of life and business you want. So, if you think you have the determination and grit required to take a risk on yourself, you need to test your idea, products, and services.
Before you spend too much time, money and effort on a business that might fail, you need to build a Minimum Viable Product (MVP).
What is an MVP you ask? Well, it’s a way to test the market.
In 2014, when I started my Money Savvy business, I had this big idea to build a large scalable business model that I could grow into Africa. The business plan I wrote was so beyond my reach at that point, but I decided to begin with the end in mind and build the big dream. 8 years later, I have achieved that, but I needed a starting point. I needed an MVP to test the market. Did anyone actually want to buy this great product I wanted to develop?
So, I built one product: “Money Savvy Kids”. It was not a whole product, but one grade worth of content with 10 lessons. Once that product was developed, I could go and show people what I wanted to do. I made a small investment and used some already paid resources to help me build that first pilot product. My first client was Mrs Mbeki and she paid me R250 000 for a product like mine, but one that was her own, with her own branding on it. I had validated that this idea was going to work. Someone was willing to pay me for my services. Not just pay me but pay me well! That R250 000 was what I used to build the Money Savvy brand.
If you are looking for words to describe Kathryn Main, CEO the Money Savvy brands, quirky, determined, visionary and masterful are just some that spring to mind. Kathryn is an author and award winning businesswoman and has won awards for her advertising agency as well as Money Savvy Kids. Kathryn has a passion to change the face of education on the African continent through financial literacy education and training. The Money Savvy brands are revolutionizing the way financial knowledge is disseminated to younger generations of South Africans. Money Savvy Kids + Teens promotes in youth the skills, knowledge attitudes and behaviors required to be financially independent.
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