Small Business Management is no Pap and Vleis

A lot of South Africans especially the young and vibrant each want to own a business. Yes we agree as Nobd that there is a shortage of employment out there and therefore we should all go out and create employment for ourselves and others. However, small business management is no pap and vleis.

1. First of all you need a good business idea. A good idea is one that offers a product which is going to fill gaps in the market place and have demand. Depending on the size of the gaps, you may find that the market for your product is very small to sustain a business.

2. Secondly, you need the knowledge and experience to run a business. For any organization to function properly, duties of finance, operations, public relations, marketing, advertising, human resources management, purchasing and procurement, etc have to be performed.

In big organizations, these functions are performed by many people who spent many years at top universities and many other years learning to implement these functions successfully in the practical world. Therefore the ability to run a marketing department for example by a certain number of individuals within these large organizations is huge and they have this education and experience muscle in all other departments.

Now you being a small business, you cannot afford all these learned and experienced people and you have to somehow fulfill all these duties. Its a mammoth task you cannot achieve without the help of business mentors.

3. Thirdly, you need the capital to do it. It is very hard to run a business without enough cash flow. You need money to pay rent, telephone, stationery, buy stock, transport, marketing, advertising, your salary and or salaries of other people you employ especially for periods when business is low and when your business is still new.

Most of us do not have the profile to qualify for loans, either because we are black listed or because we have not borrowed enough before to be trusted by financial institutions, or we just do not have the security they need.

In the next few weeks, we will write follow up articles to try and help you unlock this business dilemma.

Written by: Gibbs Nare - Business Mentor - Iso Labasha Holdings

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