The thought of being one’s own boss is inspiring. Many people dream of the day they will become business owners.
Most people focus on the flowery details such as job satisfaction and freedom, while overlooking the contingencies. Failure to plan for these can lead to failure.
Moving from employment to self-employment is not an easy transition. You should not take this decision lightly. Before you decide to quite your job, ask yourself these questions about starting your own business.
Why are you quitting your job to start a business? Do you have a business idea that you are really enthusiastic about? Or are you quitting your job because you hate it and you are hoping for a change?
If you are leaving your job because of boredom and the desire for change, becoming self-employed might not be your best bet. It would be much better for you to seek another opportunity in another company.
This is especially true for you if you are hoping that starting your own business will save you from stress, low pay and all the hard work you have been putting in in the eight-to-five job.
Starting a business will require you to put in hours of hard work, you will feel stressed and there might be little or no pay during start-up period.
Don’t get me wrong. I am not trying to dissuade you from becoming self-employed. I am saying it’s not going to be easy. And it’s certainly not a quick fix for when you’re tired o your job.
Becoming your own boss demands a lot of perseverance and commitment.
If you are ready to take the leap, it is time to start thinking about transitioning from an employee position to becoming an entrepreneur. The more prepared you are, the higher your chance of success.
People tend to think that starting you own successful business is a spur-of-the-moment kind of thing. You just decide to clear your desk, toss the papers in the trashcan and walk out of your office, never to return.
The reality is different. Making such a drastic change might turn out to be a mistake. It is more advisable to start small and grow from there. Take time to prepare before you leave your day job. It will save you time, money and a great deal of stress.
Try building your business in stages. It will be less risky and it is likely to earn you more rewards.
The following tips will help you:
What kind of business will you start?
This question is not as easy to answer as you might think. You need to know exactly what you intend to do or sell.
The most successful business ideas are those that focus on offering solutions.
Examine the market for holes and craft a product that fills this void in the society.
Finding your niche will require some level of research. You can conveniently search for information about any industry using your smart phone or computer. There are many ideas on the internet. You just need to decide on one and customise it.
Ensure that you have a developed business idea before you quit your job. This does not mean that you should use company hours to work on your ideas. This will only land you into problems.
As an entrepreneur, you should learn not to burn bridges. Don’t create animosity between you and your employer by ‘stealing’ time to work on your business. Remember that once you become an entrepreneur, your employer will be part of your network.
How do you measure the potential of your business idea?
Moving from employment to entrepreneurship is a huge step. You don’t want to make a move with an idea that fails.
Test your idea on a small group with a market analysis so as to understand prospective customers, competitors and the industry.
Use questionnaires, surveys and interviews about your products to see how people react.
Don’t forget to take a look at the market trends and listen to the experts in that field. Pay close attention to crucial issues influencing the industry direction and use them as a guide.
Use a business plan to refine your idea. A business plan will be your roadmap for launching the business. A business plan contains details about target customers, the product you are offering, and source of funding.
Choose an opening date and location for your business, decide on the types of records you will keep, come up with a marketing strategy and create a budget for your business.
You don’t have to grow your business alone.
Build a network of experts from various fields such as industry experts and financial consultants.
You should also network with prospective customers.
Indeed, owning a business is not for everyone. If you have a solid plan and are passionate about it, you are halfway through the journey. For your dream, seek advice and trust your instincts.
Co-Founder Founders Breakfast Kenya.
World Bank pushes G-20 to extend debt relief to 2021
World Bank Group President David Malpass has urged the Group of 20 rich countries to extend the time frame of the Debt Service Suspension Initiative(DSSI) through the end of 2021, calling it one of the key factors in strengthening global recovery.
“I urge you to extend the time frame of the DSSI through the end of 2021 and commit to giving the initiative as broad a scope as possible,” said Malpass.
He made these remarks at last week’s virtual G20 Finance Ministers and Central Bank Governors Meeting.
The World Bank Chief said the COVID-19 pandemic has triggered the deepest global recession in decades and what may turn out to be one of the most unequal in terms of impact.
People in developing countries are particularly hard hit by capital outflows, declines in remittances, the collapse of informal labor markets, and social safety nets that are much less robust than in the advanced economies.
For the poorest countries, poverty is rising rapidly, median incomes are falling and growth is deeply negative.
Debt burdens, already unsustainable for many countries, are rising to crisis levels.
“The situation in developing countries is increasingly desperate. Time is short. We need to take action quickly on debt suspension, debt reduction, debt resolution mechanisms and debt transparency,” said Malpass.
Kenya’s Central Bank Drafts New Laws to Regulate Non-Bank Digital Loans
The Central Bank of Kenya (CBK) will regulate interest rates charged on mobile loans by digital lending platforms if amendments on the Central bank of Kenya Act pass to law. The amendments will require digital lenders to seek approval from CBK before launching new products or changing interest rates on loans among other charges, just like commercial banks.
“The principal objective of this bill is to amend the Central bank of Kenya Act to regulate the conduct of providers of digital financial products and services,” reads a notice on the bill. “CBK will have an obligation of ensuring that there is fair and non-discriminatory marketplace access to credit.”
According to Business Daily, the legislation will also enable the Central Bank to monitor non-performing loans, capping the limit at not twice the amount of the defaulted loan while protecting consumers from predatory lending by digital loan platforms.
Tighter Reins on Platforms for Mobile Loans
The legislation will boost efforts to protect customers, building upon a previous gazette notice that blocked lenders from blacklisting non-performing loans below Ksh 1000. The CBK also withdrew submissions of unregulated mobile loan platforms into Credit Reference Bureau. The withdrawal came after complaints of misuse over data in the Credit Information Sharing (CIS) System available for lenders.
Last year, Kenya had over 49 platforms providing mobile loans, taking advantage of regulation gaps to charge obscene rates as high as 150% a year. While most platforms allow borrowers to prepay within a month, creditors still pay the full amount plus interest.
Amendments in the CBK Act will help shield consumers from high-interest rates as well as offer transparency on terms of digital loans.
Scope Markets Kenya customers to have instant access to global financial markets
NAIROBI, Kenya, Jul 20 – Clients trading through the Scope Markets Kenya trading platform will get instant access to global financial markets and wider investment options.
This follows the launch of a new Scope Markets app, available on both the Google PlayStore and IOS Apple Store.
The Scope Markets app offers clients over 500 investment opportunities across global financial markets.
The Scope Markets app has a brand new user interface that is very user friendly, following feedback from customers.
The application offers real-time quotes; newsfeeds; research facilities, and a chat feature which enables a customer to make direct contact with the Customer Service Team during trading days (Monday to Friday).
The platform also offers an enhanced client interface including catering for those who trade at night.
The client will get instant access to several asset classes in the global financial markets including; Single Stocks CFDs (US, UK, EU) such as Facebook, Amazon, Apple, Netflix and Google, BP, Carrefour; Indices (Nasdaq, FTSE UK), Metals (Gold, Silver); Currencies (60+ Pairs), Commodities (Oil, Natural Gas).
The launch is part of Scope Markets Kenya strategy of enriching the customer experience while offering clients access to global trading opportunities.
Scope Markets Kenya CEO, Kevin Ng’ang’a observed, “the Sope Markets app is very easy to use especially when executing trades. Customers are at the heart of everything we do. We designed the Scope Markets app with the customer experience in mind as we seek to respond to feedback from our customers.”
He added that enhancing the client experience builds upon the robust trading platform, Meta Trader 5, unveiled in 2019, enabling Scope Markets Kenya to broaden the asset classes available on the trading platform.