Chapter 5: Core Knowledge to Start Up a Business

We don't need an MBA to start a business. But, we should equip ourselves with some fundamentals if we embark on this ruthless journey called entrepreneurship. Without it, it's akin to heading into war without any skills to attack or armour to protect us. We can improve our chances of survival significantly by preparing ahead.

In this article, I'll emphasise these four categories:

1. A Business Plan
2. Finances
3. Brand & Marketing
4. Communication Skills

1. A Business Plan

Like many business owners, we're eager to sell. We can't run away from the fact that we need to make a living. It's more evident in our early stages because we're starting up, and it incurs costs. Thus, we'll be in the zone aiming to replenish our supplies as fast as possible. No one enjoys looking at an empty tank.

A business plan is pretty much a piece of document which lays out the directions for our company. I made a mistake not having one in my first e-commerce business. Without any clear direction, the only goal I had in mind was to sell, sell and sell. I ignored other elements which were essential in growing my initial business.

These include partnerships, cost structures, channels, revenue streams, customer segments and others. I understand these sound like industrial jargon for some, but it's a necessity we find out what these means.

He who fails to plan is planning to fail - Winston Churchill.

There's a template available on the net called?Business Plan Canvas. We can search for it easily. It may be a chore to fill up the segments in one go. However, we can fill it up as we move along and adjust accordingly. It allows us to focus, execute tasks more efficiently and keep a tab of all areas needed for growth.

2. Finances

Most of us will be delighted to get our first deal or project. A surge of a feel-good feeling with us makes us want more. After a successful one, we want a second, a third, and it'll never end. It's pleasurable because our body releases a chemical called dopamine that enables this great sensation, leading us to want more.

The problem is that there's a tendency that we may neglect other areas of our finances, especially bookkeeping. We don't record our numbers down and leave our accounts unattended. Without monitoring our transactions, we'll be clueless about our expenditures. We may end up spending more than what we earn.

By knowing our numbers, these are the benefits:

1. We can anticipate our spending and growth.
2. It allows us to be prudent. Logically, we won't spend if our cash flow remains negative throughout the months.
3. We are aware of clients who haven't paid us yet. It's easier to remind them early rather than later. The longer it gets, payment collection gets tougher.
4. Set a portion aside for tax purposes. While we need to pay taxes for the current year, we also need to pay a forecasted tax for the following year. Let us avoid getting ourselves into trouble with the authority because we don't have enough to fork out for taxes.

We can never go wrong by managing our accounts correctly.

Seek professional advice and help too from a qualified auditor and accountant. They can look through our numbers, making sure they are accurate. I use Xero as my accounting software and engage external parties to audit our company's accounts.

3. Brand & Marketing

As stated above, we're always eager for sales. The sounds of kaching in our company's bank account grant us a sense of thrill and happiness. While the sales portion keeps our business alive, we should never start selling without considering our brand and marketing strategies.

I started Choobub Creatives by building my brand first. I learnt that as new players, hiding behind a company logo and name doesn't help. Without a familiar face, our potential customers find it difficult to relate.

Hence, it goes back to our Business Plan Canvas. Identifying our channels are imperative. Rather than focusing on spending on paid advertisement, look for areas in which we can thrive and build a brand for ourselves organically.

There are so many social media platforms, yet, I found LinkedIn suit my needs the most. It enabled me to have a voice and network with others, online and offline. I'll speak on this in the following chapters.

Our team has been writing and building up their brands on LinkedIn constantly. That itself led to many leads flowing in our direction. Sealing the deal got easier as potential customers knew who and what we were.?

As of now, we're still building a brand because it's an ongoing process. It keeps our pipeline healthy. We know and foresee people will show up at our doorstep in due time because of the seeds we planted earlier.

4. Communication Skills

And finally, communication skills proved to be one of my most priced assets. We may overlook this, but it enabled me to build the team and forge strong relationships with others.

Over the years, I'm grateful that my previous profession allowed me to meet different types of people. I'm not a people person per se, but my role as a doctor taught me to listen and anticipate responses from others.?

I learnt how to read body language and negotiate my terms, which are extremely useful in securing business deals and vice versa. There are some people I would not create business relationships with either. We don't have to seal all deals that come our way because it'll affect our team's morale, sucking up more time and energy from our side.

Through the past years, I realised the only way we could improve our communication skills is through communicating with others. There's no other way around it. The more people we meet, the better chance of us to improve.

Keeping ourselves glued to our mobile phones on social media and plonking our keyboards away in front of the PC won't do justice. Even though we're moving into an era where technology prevails, communications skills remain relevant today.

Building relationships and trust require time and sacrifice through physical meet-ups. It's the handshake and fist bumps that create magic.

That's It?

Of course, acquiring any relevant #knowledge will always be an added advantage. We don't have to limit ourselves to just these four. However, these categories granted me stability and confidence in running the business. While it's not a priority, it is a bonus to have them in hand.

Plus, we can always ask if we're not sure. Reach out to other business owners and entrepreneurs. Learn from them. Although that takes a bite at our pride, it's beneficial for us in future.

Confucious once said, "The man who asks a question is a fool for a minute. He who does not ask is a fool for life.".

#entrepreneurship #choobub