Close this search box.

Don’t let these common mistakes drain your startup’s bank account in seconds!

542a6672 1 1

Starting a business is not easy. You’re learning on the job and as you go. The journey is not for the faint of heart; rather, it is for those who are willing to take risks.

Even though starting a startup is a significant and necessary risk, you must understand how the business world works and what you should avoid to avoid failure in your early days.

Shyaka Michael Nyarwaya is the CEO of Afri-Global, a company dedicated to assisting the economic transformation journey by acting as a conduit between entrepreneurs and investors. He has more than 15 years of experience in business and entrepreneurship.

Nyarwaya, who is currently the Pan African Movement’s Political Integration and International Relations CommissionerCommissioner, told KURA that in his experience, young entrepreneurs make mistakes that endanger their businesses. He advised them to stay away from them.

Lack of discipline

According to Shyaka, discipline should not be confused with acts of politeness, such as greeting those you see on a regular basis or saying thank you to the waiter or anyone who provides you with service, though both are useful.

The discipline he was referring to was all about planning and knowing how to capitalize on every opportunity that comes your way, but also about staying focused and having a vision in mind.

According to Shyaka, the first important discipline for entrepreneurs is to not expect to get what they want right away.

“They [entrepreneurs] meet an investor today, and they immediately think they should receive around 50,30, or even 10 million Frw,” he said. When they don’t get it, they become discouraged.”

“In business, no one gets discouraged; if you want to gain partners, be disciplined,” he continued. When you are disciplined, you pay your bills, your taxes, and so on…”

Build a structure

Shyaka claims that there is no such thing as a one-man company! Everything you do as a business requires a team to support you. He stated that you cannot do everything on your own. You must have a structure that encourages accountability.

However, many entrepreneurs do everything themselves and build their businesses around themselves, which is unsustainable.

“Also, the company must have a board of directors, a CEO, managers, an accountant, and a treasurer,” he added. Worse, you will discover that one person is the trustee, the CEO, the MD, and in charge of operations. That is a huge error.”

“You can say you don’t have the money to pay them, but everything comes from discussions,” he continued. “You speak with someone and discuss the possibility of giving them stock options, or you can say, “Let’s do it, as soon as we make a profit, you’ll get this salary.”

They do not have relevant information

The old saying “information is power” is correct. If you don’t have information, you’re heading in an unknown direction. You have a good chance of crashing.

Shyaka stated that a good entrepreneur is always on the lookout for information that will help their sales. He stated that you cannot sell a product in a market that you are unfamiliar with.

“You can’t sell your products if you don’t have information,” he said. “When you have information, you know how you’re selling what you’re doing.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Straight out of Twitter