and that the market you've targeted both
want and can afford the service, advises
Zahariev.
Build and leverage
your network
Grey points out the importance of
building a network of entrepreneurs,
suppliers and investors over time, and
then understanding how to leverage this
network in the most optimal way to make
your business grow.
"Follow tech blogs, read books and
attend seminars. And then bridge the gap
between theory and practice by directly
contacting successful entrepreneurs
within the industry that you want to
venture into," says Grey. "Respect their
time and prepare ten key questions that
you want answered. When you phone
these movers and shakers, tell them how
much time you will ask of them and be
direct and concise."
The right staff on board
"I believe that the time it takes to hire,
train, and develop personnel is the
single most influential factor in any
business. Keeping competent employees
is a challenge, especially if you're
starting a business. After all, as with any
competitive industry, there is a shortage
of raw talent," says Zahariev.
Locally, the largest hurdle to overcome
when hiring staff is competing with large
corporations who are viewed favourably by
many working professionals, says Zahariev.
This means that staff members are often
tempted to jump ship to larger salaries and
perceived growth opportunities."For my industry in particular, we
have a problem keeping international
companies away from our talent pool
as local IT professionals have a great
international reputation. Combining these
two elements together you can see that
keeping staff is a problem. Retaining
talent is a constant business task.
Ensuring that staff members are happy
is key for growth, especially when you're
starting a business."Grey points to the importance of defining
the problem at hand carefully within your
team; as the problem becomes clearer the
solution automatically becomes clearer
too. "The rate at which you solve problems
can not only influence how quickly you
get to your breakeven point during the
start-up phase but also positively influence
your team and build confidence from your
consumers and suppliers," he says.Cement your funding
Securing funding should always be a
secondary activity, after proving you've
secured the right market and staff,
says Zahariev. "While it is my least
favourite task, its importance cannot
be underplayed, as every company
needs capital. Recently HiCarByeCar.
com was given an 8 figure valuation
from a Swiss private-equity and venturecapital investor. With this valuation we're
determined to acquire capital to grow
the business nationwide by enticing new
consumers to use the service.Securing funding can be achieved in a
number of ways, but the most notable are
seed funding; when an investor financially
backs your idea, and venture capital
boosts; when an investor financially backs
the company to advance development.
"When it comes time to secure funding
make sure you're able to prove that your
company addresses a sustainable market,
and you have a staff that's able to deliver
on promises. Remember, once the funding
is secured you'll need to make sure you
are able to deliver, otherwise the chances
of securing funding in the future will be
little to none," says Zahariev.Grey gives the statistic that forty one percent
of all tech start-ups fail within three months,
not due to a lack of entrepreneurial acumen,
but due to a lack of funding. He advises all
tech start-ups to account for the fact that
it takes between six months to a year for a
start-up to gain sufficient traction, in general,
and to carefully plan your start-up budget
accordingly.Lastly, Zahariev reminds those looking to
start up in the tech and online space to
keep a positive attitude. "There are always
positives on which you can capitalise in any
market. Keeping a positive attitude means
you're able to identify bankable gaps in the
market and succeed while others sit around
and complain."