In this article, I tackle practical tips to help develop business idea.
When speaking to entrepreneurs, I always advise them to see whatever frustrates them as an opportunity.
If you are trying to buy something and you have to travel a long distance to get it and there’s sufficient local demand from other people who can buy the same product – that’s a business opportunity right there.
If you want a Coke-shake (Coca Cola with milk) and you can’t find it in the market – and there’s no such by the way – that presents an opportunity for you to make one and sell it to others. In order to follow a particular structure, I developed the following five questions which must be answered before you decide which business to open:
1. Is there sufficient demand for the service or the product?
2. What are the barriers to entry? Or what is the possibility of another person entering the same business?
3. Does it require a lot of money to start? (capital intensive). Do you have access to such capital?
4. What are you bringing into the market that does not exist? What is your competitive edge?
5. Do you and/or your partner have the necessary expertise to run the business?
My plan was to take each opportunity within each sector and answer questions 1 to 4, but the process consumed too much of my time, so I dropped it. While these businesses are not only confined to the township economy, we will be biased to the products that are still extremely popular in the townships. We have identified six key sectors in this economy. However, today we will only look at three sectors.
1. Manufacturing the following products:
– Disposable nappies.
– Construction materials.
– Gates, bricks and so on.
– Clothing including school uniforms.
– Manufacturing of Health and Beauty products.
– Components.
– To supply industries like mines, motor parks etc.
We don’t have to produce a car, but we can make components (seats, steering wheels, fasteners etc.)
– Food manufacturing (bread, juices etc.)
2. Services sector
– Food – own brand restaurants, franchising etc.
– Technology – app development, gaming (development of games), computers, etc.
– Cellphone and tablet repairs (over 30-million cellphones and tablets).
– Health and beauty services – salon, beauty spa etc.
– Training and Education services (pre-primary, primary, secondary and tertiary).
– Call Centre services for both local and overseas companies.
– Repairs of cars, domestic appliances, equipment etc.
– Supply of various products – office, medical, etc.
3. Transport Sector
– Taxis, cabs, minibuses, Uber, etc.
– Trucking business (freight, removals, sewage collecting trucks, water tankers – in light of the drought there’s a big demand for this service).
– Buses.
– Plant hire.
Before you decide which business you will pursue, it is important that you answer the five questions, and then refer to our business plan template we published a few weeks ago. The journey to wealth creation begins today my friend.
For more information, contact Pastor WTM Dlalisa on 083 395 1165.
