Should I try entrepreneurship or stay in the formal employment sector? That is a question that millions encounter daily. The answer may seem simple, yet it is the most difficult choice you will ever make.

Small business startups require a great deal of research consideration before you dive in. The fantasy of being your boss and the dream of financial freedom should never be the sole motivation.

This post will help you understand what entails the world of self-employment and business ventures.

 I recommend that you read it to the end.

What is a Small Business Startup?

A good number of people tend to mix things between self-employment and small business ownership. Whereas they all fall in the same category, their formations have apparent differences

For starters, self-employment is a project that puts you as the sole proprietor. In extension, you may enter into a partnership with a few individuals, or retain your identity as an independent contractor.

On the other hand, a small business enterprise includes a few workers within your organization. You become an employer with salary and tax obligations over your employees. It is possible to start as self-employed and transition into a small business depending on your preference.

As trading regulations differ from one location to another, visit your local licensing authorities for details of what they consider in registering the two.

Importance of small businesses

 Creating financial independence

The long-standing reason for small businesses is gaining financial independence. With the world turning to creative skills than academic excellence, more people are experimenting on entrepreneurship. The economic profits and wish to have a lifelong venture are significant contributors to this reason.

 Employment creation

Big corporations have strict employment regulations when hiring their employees. Small business startups trends reveal positive statistics. Over 90 percent of local stores fall within this segment. That provides for excellent retention of people who miss out on the large companies.

 Boost economies

Since they offer custom made solutions for the locality, small businesses thrive from inter-dependency. Several chain stores offering various services create a strong economic base for local taxation.

Picture this; a simple service store gives employment to several people. In return, the neighborhood gains from the rental houses of the workers. Banks and other essential amenities also grow from it.

Features of small businesses

Not all small business startup ideas transform into national or even global companies. Most of them do well in their localities due to several factors. The main characteristics of a small enterprise are as follows:

• Few Employees

The number of workers may vary from a sole owner to a few people depending on their services. This helps check and improve the quality and standards while minimizing operational costs.

• Limited network

Most small startups serve the local needs of a specific geographical or social section of a community. The customizing of the service to address a particular problem makes it hard to expand beyond the area. Again, there is a more significant risk of being in a higher classification tax bracket when growing.

•  Higher profitability

Small scale startups have fewer operational costs in comparison to their big partners. Owners operate from their premises and do not incur overhead expenses. This pushes the returns higher despite the low revenues they generate in a season.

•  Slow expansion

This affects the sole proprietorship for the reason that the owner runs all the business departments alone. The lack of a clear departmental structure and expert advice keeps the growth slower.

Types of common small business startups structures

Businesses may take various forms of organization, depending on their locality and services. Small ventures fall under four categories that affect their operations, growth, taxation, and profit returns.

Read also: 7 Mistakes to Avoid When Starting Your Business

Sole proprietorship

It is the first and most common of the four. The owner operates and owns the entire business venture as personal property. In most cases, this type of formation does not need legal licensing, and it collapses when the owner dies.

Partnership

Here, two or more owners come together to start and operate a business. They may have equal shares in investment or otherwise.

General partners are common and do not require a legal agreement to operate. In simple terms, they work under mutual trust and approval.

Limited partners need to sign a binding legal agreement and register it with the local government authorities. Both bear the responsibilities in profits and losses of the business.

Corporation

It is mostly to the small ventures which are transitioning to medium size companies.

The owner and the company are separate legal persons, so the company’s obligations cannot be shared by the owner. All the profits and losses belong to the company. In case of a takeover, the new owner inherits all the costs of the company.

Limited liability company

The owners share the burden of the company to a small extent. Usually, the rules and processes of the formation are more complex than the previous three. I recommend you engage a legal expert on it.

Small business strategic rules

Whether you are introducing a new product or expanding into a new merger, some rules are standard to consider.

Passion

Money and profit margins can be a good motivator for business startups. On the contrary, passion for what you do should be the driving force behind your efforts. It will help you survive the business storms.

Easy to expand

The planning process of your idea should be simple to implement. Start with one stream of income and make options for future expansion into other channels of profitability.

Profitability

The business incubation period is the time the project needs to grow and start realizing some profits. Make your plan easy to reach this target within a considerable time margin.

Market research

A proper understanding of your market is good for future expansion. Customers are dynamic, and you need to be ahead of them. Create an appropriate channel of communication for clientele feedback to improve your business.

Offer solutions

The market is full of existing services. If you have to make it above the rest, provide solutions that other entities do not address. That puts you at an advantage of stability.

Small business startups with low budgets

You may be wondering what the financial capital range can be for a small business. Depending on what you dream about, there are numerous ideas that you can implement with low budgets.

Here are some of the profitable small businesses:

• Pet sitting services
• Baby and house sitting
• Direct Sales
• Food Delivery
• Running Professional Errands
• Social Media Marketing
• Event Planning
• Online Tutoring

Why new small business startups fail

These are indicators that show you how to detect small business failures.

Wrong motive

Lack of experience and a sense of magical success is the primary reason why most small businesses fail. Invest in something you are happy to do with a considerable market research background. Poor planning is another significant evidence of your rush.

Similarity

When you enter a market, be sure to provide a solution. Introducing something that offers no competition fails to excite the market and ends up in failure.

Read also: How to get capital for your business in Kenya without a loan

Poor work cooperation

A poor work ethic within your small team can cost you the fortune to invest in the startup. Inexperience in the workforce due to unprofessional hiring leads to less productivity.

Customer apathy

The customer is the primary consumer of your product. Listen to the client’s feedback and seek to improve where necessary. A right and satisfied customer will be your most excellent goodwill ambassador.

Lack of online presence

Business trends keep changing to adapt to the growing internet flexibility. When changes come, be quick to fix your part and move with the current services.

How do you assess your capacity for a small startup?

Avoiding failure in small business startups is tricky. The considerations of what to do before you venture into business vary from one region to another. The checklist on this is endless, but you are safe with this summary.

Investment capital

Is the money you have sufficient to invest in the startup until the incubation period is over?

Skills

Do you have the necessary knowledge to manage what you are about to start?

Human resource

If you need to employ, can you form a robust team that can deliver the results your business requires?

Risk mitigation

As you grow, do you have a formidable plan that can shield you from the market risks?

All these will help you create a strategy to revive a failing startup, in case you encounter hostility in the future.

Final thought

You are now aware of what it takes to engage in a small business startup of your choice. The cardinal rule is simple; have a good plan, and take action when you have an advantage. Implement the above recommendations and experience the dream of financial independence while employing others.

7 Mistakes to Avoid When Starting Your Business

There is a saying that if you do not generate an income when you are sleeping, then you will work until you die. It is the reason why most people would fire their bosses and have a hustle for their longevity.

Across the globe, small businesses contribute to 90% of the economic block. While the statistics are impressive, the flip side is not. About 90% of them die in the first five years. So, what is killing such a promising sector of our economy?

Here are the 7 most fundamental mistakes you must avoid:

1. Wrong Business Motive

Surprisingly, most people resign from their bosses and not their jobs. The frustrations of formal employment drive them into ventures without any business ideas. Peer pressure, self-employment profit margins, and the vision of being their own boss are some of the misgiving reasons. Without any passionate input, they encounter severe obstacles and lose hope. The bottom line, start something you are passionate about.

2. Insufficient Capital

Most ventures take time to break even. You need some operational cash to sustain you during the incubation period. Serious partners have a knack for people with reliable cash flow. It proves your resolve to maintain the enterprise for a while to come.

3. Lack of Planning

A plan is your vision put on paper for benchmarking and reference. Business plans need to elaborate on your purpose, growth, and future goals. My suggestion is you should engage an expert to handle this for you. Financial institutions tend to favor solid plans for funding at reasonable rates.

4. Poor Management

This is where your natural talents come into play. Skilled and competent workers give more productivity with fewer working hours. Poor leadership results in a lack of cooperation and high employee turnover. Without saying, it kills the morale of the business and slows growth.

5. Hostile Market

The choice of your location is crucial in any industry. It counts for your product being relevant to the market. The service should be addressing a problem in society. Most importantly, do not ignore the prevailing industry competition. Have your due diligence on your strengths and timing of the entry.

6. Insufficient Marketing

The global online platform is the way to go. Well, word of mouth is still the best marketing tool because of the trust in it. Additionally, you can expand your visibility through social media platforms. The more people share about you, the better you stand in credibility. Transform your name into a brand.

7. Poor Customer Relations

A satisfied consumer is your best asset. They tend to speed up your market base by bringing in their friends. Yes, some clients are a headache. Here are tips on how to improve your customer interaction. Customize what fits in your enterprise and see your clientele base grow.

Tyson Fury on 22 nd February 2020 in Las Vegas, USA beat reigning WBC champion Deontay
Wilder in their much anticipated rematch. The title match saw the crown change heads by a seventh round stoppage by the referee.

Unlike in their first encounter in December 2018, the rematch produced a different Fury. Starting slowly in the first round, Fury came back slowly just before the bell. By the second round, he was dominating Wilder in all aspects. Eventually, Wilder suffered his second career knockdown.

The champion struggled with a barrage of combinations from Fury. Wilder gave in and went to the canvas in the fifth round with a bleeding left ear. He survived the count from referee Kenny Bayless, and the fight resumed.

By the sixth round, it became evident Fury had matters in his own hands. Wilder went in on the backpedal. The challenger displayed a command in the center ring to send the hapless Wilder staggering for balance. With several pound hooks, jabs, and powerful uppercuts, Fury was registering a victory in points. It was just a matter of time before the champion bows out.

When the seventh round came, the punishment on the champion continued. Fury went for the unorthodox style by following Wilder everywhere he went in the ring, bringing back tales of his namesake Mike Tyson. He took advantage of the sluggish punching and bleeding ear cut of the champion. Despite the pounding, the champion kept on his feet. It was until Fury landed several power jabs to the body that Wilder’s corner took concern.

Wilder’s assistant trainer Mark Breland defied his senior and saved the champion from further punishment. Referee Bayless stopped the bout after Breland threw in the towel moments into the seventh round. Tyson Fury, the Manchester native, became WBC heavyweight champion again after surrendering his titles to fight his battles with addiction some years back.

Fury dominated the statistics of the match. He landed 82 punches compared to 34 from Wilder. He is now at 30 fights with 20 knockouts. Wilder, the 6 feet 7 inches former champion is now at 44 bouts with 41 knockouts.

If you think money, polygamy, and STDS are the family breakers in Africa, well, you may be wrong. There is a silent underlying condition that is literally wiping out marriages. This destroyer is Erectile Dysfunction. It is the lack of getting or maintaining a firm erection to effect good penetration during marital intimacy. Though it is commonly confused with impotence, which is the total lack of an erection, ED is basically a mild erection. 

A recent study sampled in Sub Saharan Africa proves that this condition is prevalent with figures as high as 58.9% in adult males. The staggering discoveries bring to the fore why this condition is a silent killer of society. Due to the shame in it, African men are negative about discussing it.

ED Causes

The classification of ED causes can be split into four major categories

• Diseases

The significant contributor to ED comes in the form of neurological conditions. Damaged nerves lose the ability to transmit messages to the reproductive organs. Consequently, you do not have any sexual arousal. It may surprise you, but regular bikers are prone to nerve damages around their reproductive organs. 

• Medication

Unknown to patients, the daily antihistamines, painkillers, and antidepressants have a direct link to ED. The medicines you take to treat some common diseases can, in the long run, create a bigger problem. It is prudent to analyze with your doctor about substance interaction and side effects. 

• Lifestyle

In a fast-paced lifestyle, people have more sedentary lives than before. Oblivious of the dangers, this living condition is aiding the rise of ED in non-medical circles. Studies show that lack of regular exercising, junk food, and alcohol consumption as the primary triggers. 

• Emotional Imbalances

When your brain is under emotional distress, your body releases more of the stress hormone cortisol. This inhibits the proper synergy of your reproductive system. Fear of past sexual encounters can hinder an erection. 

Social Effects of ED

The adverse effects of this condition are as follows:

1. Social stigma 
2. Low self-esteem
3. Depression 
4. Broken relationships
5. Sadly, suicidal deaths

How to Remedy ED

There is no specific remedy for this condition. It is prudent to seek a medical examination to ascertain the underlying cause. Once that is over, the medical practitioner will advise on the next step of therapy. 

If it is a medical condition, the appropriate drugs will be administered. Besides that, there are numerous alternatives, including exercising, dietary supplements, and psychological counseling. 

Erectile dysfunction triggers are diverse. It would help if you did not suffer in silence about your condition. Seeking medical attention in the initial stages can help arrest it. Then, be the goodwill ambassador by assisting others to come out of the silent condemnation.