Thinking of starting a business? Here are the key things to do

Have you been thinking about starting a side hustle but cannot seem to work up the courage to actually do it? According to Dell Women Entrepreneur Cities (WE Cities) Index, there has never been a better time for women to throw their hat in the entrepreneurship ring. The index, which is cited as ‘the only global, gender-specific index that looks at a city’s ability to attract and foster growth of women-owned firms,’ ranks Nairobi as No.33, only second to South Africa’s Johannesburg.

Some of the pillars measured include access to capital, technology, culture and talent. This is welcome news because it shows we are making great strides as a country. On a personal level though, what are the considerations that should be top of mind when considering how to start your venture, and whether to test the waters or jump both feet in?

Networks

Networks are not just in the form of individuals. Reach out to organisations and accelerators that specifically support women or early stage entrepreneurs with resources such as access to legal advice, business management skills, access to markets, refining your business plan etc. These will go a long way into equipping you with skills at a much lower price point than if you were to engage these specialists individually.

Financing

Yes, there are a couple of funds specifically targeted towards women and the youth. But success in being able to access them depends on many factors, and you are not guaranteed on the first try. Therefore, if you are currently employed, keep your day job as it will offer you a cushion while you start, make mistakes and pivot (as you will invariably do). However, do not give your employer a reason to fire you so ensure you are not running your business on company resources.

Most first time entrepreneurs use savings or debt to start off their ventures, especially in capital intensive spaces like product-based businesses. Losing an income such as employment income and at the same time having debt payments that fall due before your business is cash-flow positive can be a recipe for disaster. This is just another reason why the ‘side’ in side hustle is recommended.

Planning

Whether the plan is to quit or pursue your venture on the side, have a realistic idea of what it will take to take your business from idea into revenue, then multiply that time period by a factor of 2. Everything always takes much longer and more money than you expect. Plan but do not forget to keep in mind contingencies and unexpected incidents. If you have personal expenses like school fees and medical covers, how do you take care of this if your business takes a much longer time to get to self-sustainability stage?