Connect with us

Types of Businesses to Start

How To Go From A Clever Idea To A Viable Moneymaker

Unique ideas can work. But they need to be commercially viable, with the ability to be scaled and leveraged to handle increased volume and growth.

Harry Welby-Cooke

Published

on

business-idea

One of the advantages of being a business coach is the opportunity to work with a lot of different businesses and business concepts, seeing what works and what doesn’t. I’ve been involved in a lot of different, unique and unconventional businesses from ladies fashion to premium dog food.

One of the more unconventional businesses we’ve worked with lately has been a South African company called the Liza Clifford Bra Fitting Studio — a niche company that addresses a need many women have: To find the perfect-fitting bra.

While Liza’s concept was an immediate success with customers, her issue, like that of most idea-driven business owners, was finding a way to make her idea commercially viable and sustainable, shifting responses to it from “That’s a great idea. I’d buy that!” to “That’s a great idea. Here’s my money!”

Related: 10 Business Ideas Ready To Launch!

A Systemised Model

Once that happens, you need to organise your entrepreneurial undertaking into a systemised model that gives you predictable results.

What does that mean? The business can run without you. This simply means there are systems and processes that drive the business, and if anything were to happen to the owner, the business could continue to grow because the business plan, growth strategies and day-to-day ‘default activities’ are on paper and shared with a team, not in the owner’s head.

This also helps deliver the concept consistently to create personalised customer experiences.

Systemisation doesn’t stifle personal creativity or service; it helps define and give parameters for the team to treat every client individually within the context of the company’s values and culture.

In Liza’s case, while each one of her customers is treated to the same private-fitting process that is consistent and repeatable, it is in reality an individualised experience for her clientele.

Related: Simple Money-Making Ideas for Entrepreneurs

Focus On What’s Measurable

Ideas can be nebulous and fuzzy. Numbers, meanwhile, are objective. How many customers at what price points produce profit? What profit margins are needed to sustain growth? How much business can be referral-based to reduce outside marketing spend?

Once those numbers are known, you can be very clear about what you need to do and what you need to pass on every day to be successful. For example, the proper training around a simple retail script can increase daily sales exponentially. Not buying the online discounted ad programme could save resources you need to buy new products. You can only manage what you know in order to measure for the results you need.

Related: How To Start A Side Hustle Without Quitting Your Day Job

Growth Is A Must

Room for growth is built into the company’s structure. Growth isn’t an option for being in business. It’s a necessity. Even if your goal is to be a home-based consultant or you want to manage and control your growth, you will need to get new customers to replace those who move on.

However, if your goal is loftier — such as multiple units, national expansion, franchising — you’ll need to document your processes to multiply and leverage your business concept.

The biggest reason businesses fail isn’t lack of capital, but rather lack of knowledge. Having an idea for a business is great, but knowing the difference between a good idea and a good commercial idea is literally money in the bank.

Harry Welby-Cooke is the Master Licensee for ActionCOACH South Africa. He is also the President of COMENSA (Coaches and Mentors Association of South Africa). ActionCOACH is the world’s largest executive and business coaching company with operations in 39 countries. It is also on the list of the top 100 franchises globally. As a highly successful Business and Executive coach, Harry is a master of teaching business owners how to turn their businesses around and accelerate their growth. Email him at harrywelbycooke@actioncoach.com or call 0861 226 224

Continue Reading
Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Types of Businesses to Start

A 7-Step Guide To Starting Your Own Trade Business

With that sorted, it is time to get on with the more exciting operational stuff.

Morné Stoltz

Published

on

trade-business

Skilled tradesmen are always in demand. Whether you are a plumber, electrician, cabinetmaker, refrigeration expert, tiler or builder, there is a ton of work out there. For many, the best way to make the most of the opportunity is to open your own business.

Where do you start? The first step is to register your business with the Companies and Intellectual Property Commission (CIPC). Look for a catchy name that is easy to spell and memorable – you do not want customers to struggle. The CIPC will tell you which names are taken. It is also a good idea to do a trademark search before deciding on a name. Register with SARS and make sure that all your tax affairs are in order.

It is a very good idea to get a good accountant right at the early stages of the game. They can also help you set up the legislative requirements for running a business. The National Small Business Chamber is a non-profit organisation that offers a range of services to its members that aim to help them grow faster, save money and receive the support they need.

With that sorted, it is time to get on with the more exciting operational stuff.

1. Finding customers

You want to find customers in order to grow your business beyond the ones you already have. These days, that means a website and some smart online marketing.

This can be as simple as setting up a Facebook page and any one of several other social media sites (like Instagram and LinkedIn). These services are at no-cost to you and allow you to quickly build up a following of loyal customers. You can share ‘jobs well done’, so prospective customers can see what you are capable of, while your contact details are easily accessible. In due course, consider some paid averts on relevant social media platforms and perhaps a website of your own. It is a good way to get potential customers on board.

At the same time, list your services in community newspapers, noticeboards and newsletters so everyone in the area can easily see that you are available and what it is you do. Also, keep your eye on social media community groups – and ask family, friends and existing clients to refer and/or recommend your services when an opportunity arises.

Finally, there are many government initiatives and non-profit organisations whose aim is to help small businesses succeed – with a particular emphasis on black-owned businesses. This help could range from facilitating access to finance, all the way to mentorship. Spend some time finding out what help is on offer. The SME Movement site also has this kind of information.

Related: How To Start Your Own Artisan Business

2. Stay focused

For those just starting out, there might be a temptation to take any job that crosses your path. Rather stick to your area of expertise to build a reputation based on proven skills. If you are an electrician with a little plumbing experience, for example, tackling a piping job could cause more trouble than it is worth. Every trade is different and you are an expert for a reason.

Leave the other work for experts in those fields – but build up relationships with them so that you can refer work to each other.

3. Ride on your qualifications and references

You have spent a lot of time getting certified. Let your customers know about your qualifications and experience by putting it on your Facebook page, your invoices, e-mails and other communications. The same goes for references; these are valuable and provide evidence of your ability to get the job done. Ask for a reference when the job is complete and then on to social media it goes. The good news with social media, by the way, is that these references do not ever go away.

4. Stay on top of the paperwork

The good old days of doing business on a handshake may be behind us. Providing quotes, contracts, invoices and records of payments electronically makes paperwork a whole lot easier by creating a digital archive where physical copies aren’t needed, but it serves the same purpose, when it is formally recorded, it is far easier to see what has been agreed to, done and paid for. Do not skimp here, even the best customer service provider relationships can go awry if verbal agreements are all you have to go on.

5. Register with your trade association (and invest in CPD)

Being a member of a trade association (like Master Builders, the Institute of Plumbing or other professional bodies) lends credibility to what you are doing. It also provides access to new customers should larger contractors need to sub-contract. Your trade association also formalises training and continuous professional development (CPD).

Related: 6 Tips For Launching Your Global Brand

6. Get business insurance

All too often, this crucial coverage is ignored by those starting out on their own. You want to protect tools and equipment on the one hand and you also want broadform public liability to safeguard yourself, your employees and your business against third party claims should something go wrong on the job. It provides cover in connection with your normal business activities and also your liability if any employees are injured in the course of work.

Putting the right insurance in place can mean the difference between staying in business for the long term or folding the minute the tools grow legs and disappear.

7. Deliver good service

Do not forget that every job is a potential reference and, at the very least, is your entry into that client’s network of friends or business associates. Concentrate on giving good service and actively request feedback so you can remedy any shortfalls. A take-it-or-leave it attitude may be relaxing, but it will prevent your business from growing to what it potentially can be.

MiWay is an Authorised Financial Services Provider (Licence no: 33970)

Continue Reading

Types of Businesses to Start

The Ultimate 101 List Of Business Ideas To Start Your Own Business In South Africa

Want to boost your income on a part-time basis? Looking for a new business to start and grow into an empire? You’ve come to the right place. This list of business ideas will help children, adults, men, women and even people in rural areas think about ways to become an entrepreneur.

Diana Albertyn

Published

on

Prev1 of 11

the-ultimate-101-list-of-business-ideas-to-start-your-own-business-in-south-africa

Are you looking for that one idea to spark a business that will make you money? We have one hundred and one just for you!

Whether you’re a stay-at-home mom or dad looking to pursue your passion part-time, a nine-to-five employee seeking a side gig, a creative who’s keen on innovative and flexible moneymaking methods or a student at any level in your education, looking to start your entrepreneurial journey early…we’ve got the best ideas for you to choose from to kick-start your very own business, today.

This comprehensive slide show below is just what you’ve been waiting for to take your first step into financial independence. Read on to find your perfect fit and discover more about how to get started.

Prev1 of 11

Continue Reading

Types of Businesses to Start

What You Need To Know When Starting A Tech Business

For the tech entrepreneur, the majority of your intellectual capital will reside in your software, code, databases, websites or mobile applications.

Damian Michael

Published

on

tech-business-idea

Protecting and managing your intellectual capital starts with finding, identifying and classifying your most important human and intellectual assets. Once you know what you are looking for, you can then determine whether you have the rights you need over those assets. If you don’t, you can then go about securing those rights and then select the best methods of protecting them.

Terminology

Intellectual capital, intellectual assets and intellectual property 

In the industrial and manufacturing industries, the conventional forms of capital needed to start and grow a business were real estate, factories, plant and equipment. But in today’s knowledge economy, these physical assets have largely been replaced by ideas, knowledge and creativity as the new drivers of value.

Related: High-Tech Marketing Sample Business Plan

This new type of information and knowledge-based capital is known as intellectual capital. Your intellectual capital is basically all the knowledge, skills, capabilities and work product that you and your team have to offer, together with the relationships, reputation and brand equity that your business is able to attract and maintain in the marketplace.

Intellectual capital is made up of the following:

  • Your ideas, insights, knowledge and creativity (intellectual assets)
  • The talent, skills and capabilities of your team (human capital)
  • Your contractual relationships and connections with investors, customers and other stakeholders (relationship assets)
  • Your unique brand and the reputation and goodwill you have built around it (brand assets)

In the same way as we as individuals have a whole lot of information and knowledge, some useful, some useless and trivial; your business’s intellectual capital can also be categorised according to its uniqueness, usefulness or value.

Where your intellectual capital displays these additional qualities, it may qualify for statutory legal protection. These special assets, commonly referred to as intellectual property, are bestowed with rights and protections which give the owner a period of time (limited) to commercialise or exploit them without any undue or unfair interference from others. The trade-off is that after that period of time expires, the asset becomes part of the public domain for anyone and everyone to use.

Discovering what intellectual capital you have and need

For the tech entrepreneur, the majority of your intellectual capital will reside in your software, code, databases, websites or mobile applications. Copyright law without the need to register rights or comply with any further formalities automatically protects most of these assets. However, it is still necessary to identify and categorise those assets because the ownership rights and the ways to protect them may differ between the different types of asset.

At the same time, there may also be a wealth of other intellectual assets tucked away in your filing cabinets and hard drives, waiting to be discovered. These may include valuable trade secrets, know-how, methodologies, customer learning, and market research.

Related: Tech Implementations In Africa – Staying Ahead Of The Game

Once you have linked the value drivers and competitive advantages in your business with the assets that produce them, list those assets and classify them according to the structure that they take.  Are they people-based or embedded in technology or documentation. Do any of them qualify for statutory protection?

The outcome should be an inventory of all your intellectual capital, classified according to the different levels of protection available as well as their importance to your business.  You probably don’t have the time, energy or budget to protect everything, so taking the time to do this exercise will ensure that you separate the wheat from the chaff which will save you in the long run.

Continue Reading
Advertisement

SPOTLIGHT

Advertisement

Recent Posts

Follow Us

Entrepreneur-Newsletters
*
We respect your privacy. 
* indicates required.
Advertisement

Trending