Some entrepreneurs have chosen this path due to their creative abilities and their will to make change in any given industry. However, many others decided to be entrepreneurs as a way of living since they were not able to find proper job which meets their expectations.
Unfortunately, most of the initiatives from either public or private sectors to support entrepreneurship were mostly focusing on first groups while second groups end up struggling while establishing the first phase of their business, which leads many of them to abandon the startup before they even start operations.
Therefore, entrepreneurs have to be well-prepared, in order to increase their chances of excelling in their businesses. We will discuss some of the basic requirements that entrepreneurs should consider to make sure they are ready to take on the startup business.
Every entrepreneur should prepare a feasibility study to understand all the aspects related to the project and if it is feasible or not with respect to the competition, market demand, consumer’s acceptance of the product or the service, financial capability and requirements, etc.
This kind of study usually needs to be done with a consultancy office to ensure using right information and analysis which provides the right recommendation. However, due to the high cost of such studies, entrepreneurs may not afford them.
In this case, it is recommended to replace the feasibility study by SWOT analysis to give a better picture about the market challenges by identifying the strength, weakness, opportunities and threats related to the project.
Entrepreneurs need to prepare basic budgeting plan for the project by considering establishing operational costs for at least six months until they will be able to do business and generate revenues.
Securing this amount is important before starting the establishing phase to avoid any deficits. They have also to be very efficient in managing the project’s cash-flow by avoiding any unnecessary expenses.
Entrepreneurs have to find a good and reliable mentor, who can help them to improve their management skills, inspire them, and keep them motivated, which will make them ready to face every obstacle during establishing stage.
Entrepreneurs should always choose the projects which are within their financial capabilities. Additionally, finding the right funding partner is very crucial for the sustainability of the project.
The partner should share the same vision, goals, and strategies that will be the base of the business. Moreover, it is recommended to find a partner that has at least basic knowledge about the project so he can help in managing the business during the peak times or any leave.
Fadi Alawami, Regional Manager, Gulf Finance, Saudi Arabia