Starting Your Own Business

Starting a business can be a daunting yet exhilarating experience. The thought of breaking out of the matrix and being your own boss, sparks joy and excitement. However, the enthusiasm starts to wane as you realize how much responsibility this calls for.

Statistics show that a significant percentage of start-ups shut down by their 5th year, prompting the question: what are the survivors doing differently? Might it be more passion, longer working hours, or even, more capital?

Let us explore what it takes to start and stay in business.

We have, John Doe, a talented musician who studied education majoring in computer studies, and he wants to become an influencer. Let us break down how John could start a profitable and sustainable business, in line with his passion, leveraging his skillset, and also contributing to the betterment of society.

Self-analysis

The first step to starting a business is to self-analyze. Conduct a SWOT analysis on yourself as the entrepreneur, to identify your strengths and weaknesses, the opportunities and threats created by your unique life experience, education and skillset.

Say John decides to create musical educational content for high school students. He finds that this will allow him to leverage his skills and passion, while creating constructive impact to the society.

Market Research and Analysis

Following the self-analysis, John Doe should go ahead and conduct a market research. This will help him identify the market trends, the competition and the niche, helping him to determine his target audience and the kind of content he should create. Some of the key issues John should focus on in his research include:

Trends: Through trend analysis, John is able to discover the kind of music his target audience listens to. This would involve looking at the hit songs over a period of about 3 to 7 years. This not only provides a picture of the past, but it would also help predict the future trends in the industry.

Advertising: This involves an analysis of how trending music was advertised, what platforms teenagers frequent for music, what kind of graphics are most relevant and popular, and how did this influence the beliefs and behaviours of the youth growing in that time (societal impact).

Market segmentation: This involves determining the existing differences within the target audience and integrating them to produce more personalized content. This will enable John to reach the most relevant market.?

Market segmentation consists of 4 major types, demographic, behavioural, geographic and psychographic. In this case, John can ask himself the following questions to better understand his audience (each question represents one type of segmentation mentioned above).

a) Is there a difference between the genres of music preferred by teenage boys and teenage girls? Which subjects is each of these groups (boys and girls) struggling with?

b) Which social media platforms do teenagers frequent and at what time are they likely to log on to these platforms?

c) Is there a difference is the music preference of students living and/or studying in urban, suburban, and rural areas?

d) What beliefs are ingrained in the audience’s minds based on their gender, upbringing and socialization?

Competition: Additionally, John’s analysis should include identifying who else is in his chosen niche. This will help John determine the:

a) The areas where the market is underserved.

b) How long the competitors have been in the market and what influences their success.

c) What their strengths and weaknesses are, and what opportunities and threats they pose to his business.

d) If there are any opportunities for collaboration.

With the information gathered so far, John has determined his niche, refined his idea, and validated its potential as a feasible enterprise. Market research should be carried out regularly to determine one’s standing in the market and opportunities for growth.

Strategy: ?Next week, John Doe will create a strategic plan for his business. The strategic plan will enable him to set long-term goals for his business and create an implementation plan that breaks down these goals into actionable steps he can carry out regularly.

Does the task of market research sound overbearing? JEYPENT Company Limited is a management consultancy and international development firm based in Nairobi, Kenya. Our range of services includes strategy, organizational and human capacity development, market research, and monitoring and evaluation.

What kind of business are you looking to start? Let us know in the comments so we can tailor content with examples based on your trade.

“Starting Your Own Business” first appeared on JEYPENT’s LinkedIn page in September 2024. JEYPENT is a Strategy, Market Research and Capacity Development firm that supports organizations towards Africa’s transformation. The firm is based in Nairobi, Kenya.

You can reach JEYPENT on [email protected].

DISCLAIMER:

Unless otherwise stated, JEYPENT’s articles are based on third party reports/ findings as therein referenced. Therefore,?JEYPENT’s articles are not in any way to be taken as endorsements or criticisms of the products, services, behavior, etc. of the organizations or individuals we cite as examples. Further JEYPENT will not to be held responsible for any decisions the reader may make based on what we write.