Risk & reward. Thabani Zulu
− Training services require SETA (Sector Education and Training Authority) and SAQA (South African Qualifications Authority) accreditation.
− Accounting services require SAICA (South African Institute of Chartered Accountants) and/or CFA (Chartered Financial Analyst) accreditation.
3. Skills
Some businesses require that you acquire the necessary skills and experience before they can make money. That could mean formal qualifications, as in the case of accountants, doctors, lawyers, engineers or architects. Anyone who wants to venture into these fields and compete successfully would have to have at least seven years’ post-matric qualifications. This is a significant barrier and reduces your chances of fierce competition. In fact, this gives you a wonderful head start and you should accumulate more skills, more contacts, and more contracts.
Touching base with those in business
One of the things we often omit is to bounce our ideas off those who are already in the line of business we want to pursue. They will give you valuable information about the venture to which you aspire. They have made mistakes you can learn from, have faced challenges you will face as well, and have developed ways of doing things faster and more economically. You do not want to re-invent the wheel. Speak to them and learn. Beware, however, of speaking to potential competition. They may mislead you, either by discouraging you completely so that you end up not starting your venture, or by making you start off on a wrong path so that you face challenges and sink! The best advice is to contact people who are not in your direct space, for instance those operating in another province and not where you intend setting up your business.
It is advisable to seek employment in the kind of business you want to start. Make the sacrifice for your future and volunteer to help. In that way you will experience the practical side of your envisaged venture. Rotate right through the business in the course of your employment, getting the feel of finance, marketing, sales, the supply chain, and so on. Remember, at first you may have to do all these tasks yourself or have management oversight over them in your own venture. It is important to know how they work.
Spend time reading up about your line of business. Find the industry journals. Listen to interviews with people who are already there. They will tell you what the challenges are, what the pitfalls have been and what alliances and strategies you can develop in order to succeed. Just make sure you do not go into it blindly. Remember, failure in business costs a lot of money.
Bottom line – make sure that by the time you make the first move that costs money, you are certain that this is what you want to do!
Am I fit for business?
Take some time now to fill in the simple questionnaire below, which will give you an indication of the challenges that you will face in business and also help you assess whether you will be up to overcoming them. It is by no means a comprehensive guide to all potential business challenges but will certainly give you general indicators. Answer simply “Yes” or “No” in response to each question.
If you get a score of less than 60%, in other words, your “Yes” answers account for 60% of the questions asked, you may struggle in you own business and will have to work seriously hard to make it work. A score of 80% and above will indicate that you are a natural. I would go for it if I were you. The chances of success are great!
Remember, complete this questionnaire as honestly as you can. Avoiding the truth is merely deceiving yourself. Even if you decide to venture into business anyway, the questionnaire will help you to know your shortcomings and bring to the fore things to guard against as you proceed. Reflect honestly, and you will succeed.
| BUSINESS SELF-EVALUATION QUESTIONNAIRE | YES | NO |
| Myself and business | ||
| 1. Am I a self-starter? | ||
| 2. Am I confident? | ||
| 3. Am I disciplined? | ||
| 4. Am I willing to live without an income? | ||
| 5. Am I ready to put in more time than the normal hours of work? | ||
| 6. Am I willing to sacrifice time with my family and friends? | ||
| 7. Am I creative? | ||
| 8. Do I like taking risks? | ||
| 9. Can I live with uncertainty? | ||
| 10. Can I work under pressure? | ||
| 11. Can I function under financial stress? | ||
| My business and I | ||
| 1. Do I know all the dynamics of the business I intend venturing into? | ||
| 2. Do I have the skills to make it work in this line of business? | ||
| 3. Do I have effective support structures in this business? | ||
| 4. Do I have experience in the business I am pursuing? | ||
| 5. Can I satisfy clients? | ||
| 6. Can I perform multiple tasks? | ||
| 7. Do I have multiple business skills? | ||
| The leader in me | ||
| 1. Would I readily take the decision to fire someone? | ||
| 2. Would I deny a free service or money to a relative or friend? | ||
| 3. Do I have what it takes to make people listen to me? | ||
| 4. Am I flexible in listening to other viewpoints? | ||
| 5. Can I give direction and monitor progress in what I need done? |