You finally launched your business, congrats! But watch out, your startup business could be one of the over 90% startups who do not surpass the fifth year ceiling according to Forbes. It is true, every good idea goes through turbulent moments to turn to gold! Have you quizzed yourself on how to avoid making it into the failure statistic?
Just maybe you are lucky to be reading this article. These are eight (8) indisputable factors identified by The Spirited Hub Facebook Community to avoid joining the “popular stands” of young business collapse.
1. On what core value is your business built?
The point-of-view (POV) of @Kofi Acheampong, “Many start-ups, I believe do not define their core values as to why they exist”
A valueless commodity is not worth the attention. All business ideas need to be built on a foundation which will keep reminding owners of why they existed in the first place. Value is simply defined as the quality that renders something desirable. So, why is your business important to your customers, what do you intend achieving ultimately with your concept, what principles should guide you to success, etc. Before you proceed any further define what your central values are for success in the long term.
2. You lack basic knowledge of doing business.
The brand expert and author of Branding 360, @Scofray Nana Yaw Yeboah, points out that most young businesses start with founders not having any knowledge of how a company is run. He identifies “poor planning, management, over zealousness.” Again one sin you may be committing is lacking “thorough knowledge of what the business is about.” What will be your reaction when you have knowledge that the driver of the vehicle you currently sit in has no qualification to even hold the steer? Imagine?!?!?! That feeling is what your young company may struggle with. Simply get some business knowledge from mentors and experienced entrepreneurs to guide your steps. Your lack of basic business knowledge may lead to your inability to be innovative enough. Sheer innovative spirit will help you maneuver through inadequate funding.
3. Are you a born entrepreneur or not?
This is an argument that will surely not die anytime soon. You must do a self-examination of the amount of risks you can chest. One school of thought says you cannot succeed as an entrepreneur if you are not born as one. Do you agree? If you are not able to withstand the challenges that come along with running a business, you can as well kiss success goodbye.
“Lots of people enter into entrepreneurship because they’ve read about someone and thought it is fun to be part of the game. They do not assess themselves properly before accepting the challenge, and when it gets tough, they start thinking of the other way to go out of business, which is one of the easiest decisions to act on” – @Prince Akpah
As @Marricke Kofi Gane, a Certified Chartered Accountant, Entrepreneur and an International Development specialist sees, “The reasons may be endless and in some cases, not obvious. A few things come into mind, 5 things in fact that usually are the most practically common reasons businesses fail so early.
4. Owners are not prepared to fail.
Just like many of us, the last thing we probably think about is our companies collapsing too soon. Truth be told, anything can happen and you must have an open mind to accept few failures in your journey.
“Not everybody is cut out to be an entrepreneur. If you cannot take a few failures and bounce back and simply continue, then don’t venture. The winning strategy is to accept that there will be failures but that your number of wins are more than the failures.”
5. Lack of research.
Even God, turned on the light (let there be light) before he started working. It’s not enough to just ask a few “paddies” if they think this idea is cool. One has to find out what is already out there, is there a real need? How much need for this service or product? Who is already doing it? How different can I be from them?
6. Financial Planning
Many people don’t understand that you need money beyond just setting up. In fact you need money to run the business afloat for the first 6 months if profit doesn’t show up. If you don’t ready for this, the business may collapse before it even has the chance to take off.
7. A lot of entrepreneurs have not developed themselves.
That, is the greatest asset in the business – you.
8. Hard work is a prerequisite for success.
Most people don’t know until it’s late that the first few years of startups require the highest levels of discipline and rigour.
Are you convinced and what is your take? Leave your comment.
Source Beauty is pushing the boundaries of Egyptian e-commerce
Egyptian e-commerce: the county’s digital drive has not yet gotten to the growth typically seen in European countries and North America. However, as businesses have started shifting online, customers are now following suit, resulting in the gradual development of the digital eco-system.
Innovation, such as digital marketing, is reinventing the consumers’ path to purchase. The Egyptian e-commerce market is expected to grow at a rate of 33% annually to approximately $3bn by 2022, according to Oxford Business Group.
Source Beauty and disruption
The increase in e-commerce comes from rising internet penetration rates, driven by connected and digitally savvy millennials. Several platforms, both locally and internationally, such as the direct-to-consumer beauty platform Source Beauty, have disrupted the beauty industry in the region to drive their growth by truly connecting with their customers.
By being aware of the changing consumer behaviour trends in the e-commerce landscape, service providers like Source Beauty are continually fostering customer engagement with a community they have created. The customer service team, along with the editorial and marketing teams, respond to each comment and direct message, making customers feel listened to.
Lydia Schoonderbeek, the founder and CEO of Source Beauty, said:
“Egypt has traditionally been a price-driven market. After devaluation and high inflation rates, people have become much more price sensitive. People are consuming less and are shifting away from imported products due to price, accessibility and inconsistency in supply. As a result, they’re looking for local alternatives.”
In line with its digital transformation and financial inclusion agenda, the Egyptian government has set in place directives to raise the limit for electronic payments for individuals via mobile phones to EGP30,000 (USD1,905) per day, and EGP100,000 (USD6,350) per month, since March 2020. Traditionally, 70% of online purchases were cash on delivery, which has proven to be a major challenge to e-commerce growth throughout the region. This preference has changed to credit card payments, increasing to 30% from 16% due to the spread of Covid-19, but it remains to be seen whether purchasing behaviors will be affected in the long term.
The CEO of Source Beauty further added that, the company had seen substantial growth thanks to the COVID-19 global pandemic, with existing and new customers wanting to limit in-person beauty services and adhering to social distancing and mask-wearing requirements. Beauty customers, she says were changing spending habits, moving towards products that allow them to recreate the salon experience in their homes and protect them from the potential impact of an increasingly digital lifestyle. Finally, she believes they have seen customers prioritising skincare and haircare purchases over makeup.
The question is, ‘Is anyone in Egypt going to buy beauty products online?’. Who thought people would buy books on the internet from a website called Amazon! Well, the answer seems to be YES. Consumer spending in Egypt on non-essential goods has reached EGP 3.90bn in 2020 and is set to reach 8.81bn in 2021, according to FitchSolution’s 2021 Report.
According to the Egyptian e-commerce beauty company, Source Beauty, it believes that the world is in an era where consumers are looking to associate with brands and not products, to make their beauty purchasing decisions and this is where homegrown brands like theirs will doubtlessly lead to economic growth in Egypt.
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