The Small Business Forum
Start-Up
- Start-up involves launch of the business. The objective in the stage is to prove the business a workable idea. A business is shown to be a workable idea when the first set of customers buy the product. From there, it is a question of numbers, getting more people to buy more.
- Sales are low and fluctuating, and the cost of production or purchases, high. As the owner, you direct all activities, and your presence on a day-to-day basis is crucial.
- The main focus is on production and selling whatever is produced. A key problem is management. You are involved in doing and have little time for management. You also lack crucial information on the market, who buys what, when, to plan and stabilise sales.
- Costs mainly include the short-term cost of stocks, production, and selling. Financing may include owner equity. It is difficult to attract outside investors. Loans are also difficult, and borrowing opportunities may, besides, have been exhausted in the setting-up costs.
Comments, Questions and Suggestions welcome.
drkibuka@thesmallbusinessforum.co.ke
+254-729524219
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