What NOT To Do When Starting a Business!

Starting a business may be very daunting and stressful. Entrepreneurs need cash to running their start-ups successfully. The biggest challenge that most start-up companies face is cash-flow and this in turn affects the way we make decisions.

Funding Connection is a business consultancy agency based in Durban dedicated to the success of small businesses. They not only help you draft a professional business plan, but they also assist you with the capital raising process.

Here is our list of tips on what NOT to do:

1. Don’t overcomplicate your business model as a start-up company! You need to be clear in your business plan about how you will accomplish your company’s startup success and have clear step-by-step strategies in place.
2. Do not rush into a business idea. Starting a business takes time and many entrepreneurs largest mistakes are not doing market and industry research. You need to know what the market wants and what prices your customers are willing to pay. Don’t forget to have a look at your competitor, see what they are doing right and wrong and use this to refine your own idea.
3. Your pricing strategy should not be modelled around being cheaper than your competitors! As a start-up, we highly recommend you do not rely on this strategy, as the markets well-established competitors will simply reduce their price and can kick you out again. We suggest matching their prices and providing great quality services.
4. Payment terms! We highly recommend start-ups do not offer payment terms of 30 – 90 days to clients. As you are new to the market and need to ensure you have positive monthly cashflow. We recommend your payment terms should be paid upfront or cash on delivery for your products and services.