What to Avoid When Starting Own Business in Africa – Professional Business Consultancy From CWIIL Group of Companies

An increasing number of African entrepreneurs are entering the challenging new world of running one’s own business. Pearl Seigel of M/s Training Shop, South Africa, addresses some of the common pitfalls :

1. Lack Of PlanningBusinesses that do not have a plan often lack direction and focus. The purpose of developing a business plan is not just to raise capital but to direct the process of starting a new business. That said it is always important to change the plan as the business grows.

2. Not Using Business Cards To Promote The Business – Many start-up businesses think that the cost of business cards is a waste of money. A well designed business card with readable information is an inexpensive way of ensuring your business is remembered and easily contactable.

3. Not Understanding The 80:20 RuleThis rule is often misunderstood. When 80% of sales come from 20% of customers you may decide to spend all your time on those customers. It is important to understand that those customers have strong bargaining power and although the sales turnover may be high the profitability is often low. Also, if you lose those customers you lose 80% of your business!

4. Undercharging For Products Or Services – Some start-up businesses undercharge because they do not know how to work with mark-ups that take into account operating costs. For example if you buy a product for $10 and sell it for $20 that is a $10 profit. Sounds great but what about the other costs of doing business – these could be transport, salaries and electricity.

5. Extending Credit – Start-up businesses that extend credit may end up with a lot of bad debts. If customers do pay, waiting 60 to 120 days can threaten sustainability.

6. Acting As If You Are A Big Business – It may be tempting to act as if you are a long established big business. Suppliers and customers are not easily fooled and will view you as dishonest. Remember all big businesses start of as small businesses. Microsoft did not start as Makrosoft!

7. Bad Customer Service – Customers will always be drawn to efficient effective service. A happy customer will become a loyal customer. They will tell their friends and word of mouth marketing or referrals are one of the best ways to grow a business.

8. Letting Emotions Influence Decision Making – Decisions based on emotions without thought or analysis can be financially detrimental. For example a pushy salesman wants you to buy an expensive item or to sign a two year service contract. It’s best to take the information and say you need time to think about it.

9. Financing Growth – Growth is a good indication that there is a demand for your product or service. But can you finance the growth? Growing costs may include needing more people or machinery.

10. Lack Of Motivation – Entrepreneurship requires the ability to stay motivated. Persistence, perseverance and patience are key ingredients to claim a share of the market. The ability to keep going both financially and personally is often a problem. Speaking to other entrepreneurs or a mentor can keep you motivated.

Pearl Seigel is founder of the Training Shop, she holds a Masters Degree in Business Leadership (MBL), from the Graduate School of Business Leadership, University of South Africa. Pearl’s work experience includes marketing, branding, communication, consulting, training, facilitation, accountancy and auditing.

Starting your own company is serious business and for that professionals should always be consulted to guide you in proper directions.

These materials are not intended and should not be used as legal advice or other recommendation. If you need a legal opinion on a specific issue or factual situation, please contact a lawyer. Anyone using these materials should not rely on them as a substitute for legal advice.

Consulting CWIIL Group of Companies, for any / all matters relating to your business startup, ensures advise based on highest level of knowledge which are given to you by a team of select research-oriented experts whom each will do their own assessing of your matter, and also assess it together, thus ensuring that in case a mistake has been made by one, it will be noticed and corrected even before it is being passed on to you. Receiving incorrect and unknowledgeable business advice can be disastrous and thus should be avoided.

Remember, no problem has a quick fix solution. Thus, always ensure to consult highly knowledgeable group of professionals whom would provide you with a collective advice, never individual advice. This group advise and approach is unique with CWIIL Group and is based on the overall Management Philosophy of all CWIIL Group Companies.

CWIIL Group of Companies is a global group of multi-specialized units with diversified interests and activities, wherein each company is a separate legal entity registered under prevailing laws in different parts of the world. CWIIL Group of Companies Products, Services, Project and Solutions are in a multitude of Verticals including, but not limited to, Infrastructure, Power, Oil & Gas, Legal, Media, Technology, ITES, HR, Shipping, Aviation, Real Estate, Hospitals, Health and Medicine, Education, Funding & Investment, Business and Legal Consultancy, and Public Private Partnerships, and other CWIIL Group Units, worldwide, to name a few.

For Further Queries or to Request a Personal Quote Feel Free to Contact :

Ms. Victoria Robinson,
Head of Corporate Communications,
Internet Research & Development Division,
Email : victoria.robinson@cwiilgroup.eu
Voice : +45.8176.1961
Connect : LinkedIn I Twitter I Facebook I Google+ I Pinterest I Tumblr

For Queries Specific to Africa :
Email: africa@cwiilgroup.com , hq@cwiilgroup.eu
Web: www.cwiilgroup.com , www.cwiilgroup.eu

CWIIL Group Global Regional Headquarters Denmark,
Address : No. 1, Klokkebjergevej, DK6900 Skjern, Denmark
Voice : +45.5148.3608
Fax : +45.7014.1498
Email : corpcomm@cwiilgroup.eu
Web : www.cwiilgroup.eu

Office Hours :
Monday to Friday : 10.00 – 17.00 CET.
Saturday : 10.00 – 14.00 CET.
Sunday : Closed.

The Corporate Communications Team would require minimum a fortnight for Reviewing & Responding to Queries, which please note.

 

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