Simple ways to make it past your first year

Fareed Khimani

There’s so much that seems to be working against small businesses, from new taxes and difficulties accessing loans, to competition from companies with deeper pockets. How do I stay afloat? I don’t want to be one of those businesses that fail to make it past the first year.

This is something that has two very distinct and very strong arguments.

The majority of us go into business in the hopes of one day growing into a conglomerate, a massive entity that will be the biggest in its given area of expertise. 

We start a small duka and want to become a supermarket chain. We open a kibanda with the dream of owning a high-end restaurant. If we decide to get into property, we dream of one day making millions of shillings flipping real estate. 

But the truth is that there are also benefits to keeping your business small. I have a very good friend who’s an expert in designing and building websites. Some of the most impressive websites you’ve seen have definitely been built by him and his team. I’ve tried for years to convince him to go bigger. He has a real gift for being creative and his designs are exceptional. In my mind, when you have a gift like his, I say, “Take over the world”. 

However, my friend sees it very differently. He charges a premium for his designs. He takes his time and creates magic for one high-end client after another. He has limited overheads and expenses. The best part about his business is that when he wants to take a holiday, he simply books a flight or gets into his car and is gone. He works on his business on his terms and he’s making a tidy profit as well. Even on his company website, he refers to himself as a boutique company.

We’re in an age where our clients want a more intimate relationship with us as suppliers. He offers that to his clients and they love it.

For the more traditional industries, of course growth and expansion are key to the business plan, so the question is: how do you create that intimate relationship and keep it when you expand? Here’s how.

1. Identify your brand values up front and never deviate. Successful companies stick to their core values from day one. Coca-Cola’s brand values are: Leadership – The courage to shape a better future; Collaboration – Leverage collective genius; Integrity – Be real; Accountability – If it is to be, it’s up to me; Passion – Committed in heart and mind; Diversity – as inclusive as our brands; Quality – What we do, we do well.

These core values were created soon after Dr John S Pemberton created a distinctive-tasting soft drink that could be sold at soda fountains. Over the years, Coca-Cola has stayed true to its values, and you should ideally do the same. 

2. Always remember the first client you had. Remember how hard you worked to bring them on board. That humility will keep you in check as you grow. 

3. How can you avoid failing in your first year of existence? Make sure you investigate the market before you set up. Is there a need for your business in this particular market? This will lead you to a location. Ensure that you have researched the location and its viability for the success of your business.

Always be flexible in your approach. This is especially important when you begin and as you try to find your feet. Finally, make sure you business plan your potential problems. You need to identify what could go wrong so you can mitigate the situation if and when it does go wrong. 

There’s no foolproof plan for success, but if you work hard, stay hungry and put your customer first, then you’re well on your way.

The writer is a business owner and media practitioner.