Launching A Business Start Up Module 3 Uche

Transcript:Launching A Business Start Up Module 3 Uche:
Launching A Business Start Up Module 3 Uche Isikaku Recap… Business Unit 2021 MODULE 1 Key Definitions The Business environment Before your step out The Person and the Business MODULE 2 Develop a Strategy/Plan Choose a Business Structure Choose & Register your business name. Plan your Finances Add a footer 2 Module 3 Introduction Common Mistakes start-ups make Sustaining the business Conclusion 3 Business Development Unit 2021 Common Mistakes Startups Make And How To Avoid Them Business Development Unit 2021 4 1. Trying To Sell A Product Or Service That Nobody Wants The root cause is often a lack of robust market research. If there isn't a hungry market for what you're selling, or there is no way to differentiate yourself from the competition, then you're at risk of becoming yet another cold statistic. Consider developing a minimum viable product, or better version, to test real-world demand before you invest your life savings and countless hours in a new business venture. Business Development Unit 2021 5 2. Outspending Your Cash Flow Most startups fail because they run out of money. Running out of money is actually the result of a chain of mistakes. Usually, those mistakes involve a combination of high spending and a lack of new capital. Simply, businesses run out of money because they don't track their cash flow before it's too late. Business Development Unit 2021 6 3. Mixing Business And Personal Finances Makes it difficult to know whether you are making profit or losing money. Easy to lose track of individual business transactions. Separate your personal & business finance. Business Development Unit 2021 7 4. Not knowing your break-even point. Break-even point in business is the point at which total cost and total revenue are equal. No matter what kind of business you run, you need to know whether or not it is profitable. To find out, you must calculate your break-even point. If you don't know the crucial numbers for your business, or you ignore the math, you're headed for trouble. Business Development Unit 2021 8 5. Trying To Do Everything Yourself. Focus on what you do best and let the experts handle the other pieces. The smarter move is to outsource any tasks that don't require your direct involvement. While there is a short-term financial cost to outsourcing, the long-term payoff comes from freeing up your time and energy to grow your business. Outsource