Launching your dream
A how-to guide to starting your own business
John Haufiku, the director of corporate engagement and internationalisation at the Namibia University of Science and Technology (NUST) and a shareholder in two businesses, provides guidance to aspiring business owners based on his experience.
Haufiku began his entrepreneurial adventure in 2009, during his second year of studying towards his bachelor’s degree at university, when the challenges of life forced him to fend for himself.
He saved money and invested into his own company after his first job as a radio station manager of the University of Namibia (Unam) campus radio in 2010.
Together with other shareholders, his companies today employ more than 13 people.
Do not start from a place of comfort
“If you do not have a strong resolution or conviction to do that thing, you can forget about even thinking about it,” Haufiku said.
Having a solution to a problem and feeling the grunts of life is an ideal place to start a business from, he added.
If you are not affected by the problem you are trying to solve, it can be more difficult to uphold your commitment to your business venture. This idea can further be seen as drawing inspiration from your environment.
There are, however, various people out in the world and the most driven and ambitious people are a few and far in between. Desire, ambition and success can be a curse or a burden to somebody as much as not having food can be a driving force for another, Haufiku said.
“There has to be something that sort of changes you from whatever docile, non-entrepreneurial human being you have always been that takes you over the tipping point.”
On your marks, get set, go
“Having a business is harder than any relationship you’ve had,” Haufiku said.
The venture to your adventure can be taxing (besides having to pay taxes) because there might be less support from your family members. The chances of being surrounded by like-minded people is a lot lower - unless you grew up with a family of entrepreneurs. Therefore you have to stop and ask yourself if you are ready, he narrated.
Operating in your domain of knowledge
“For somebody starting out on a shoestring budget, you want to start out with a sole proprietary,” Haufiku said.
Understanding the industry you will be playing in will go a long way to preparing yourself accordingly. Some industries might be easier to penetrate than others. Some businesses might be more capital intensive than others. Therefore, if you have nothing to start off with, a sole proprietary business will be best.
This refers to you offering a skill that you do as a business, for example doing nails. As your business grows, it will become more difficult to scale.
However, the right support in terms of having your basics covered while you are saving up is a better position to start from. Give yourself three to four years to understand your industry to scale up.
This is the same amount of time it requires you to receive your degree. Save and invest money while owning your sole proprietary to scale up your business.
Take what you can handle
“It is often in Namibia - as an import country - to find what you are looking for.”
After having saved and invested from your sole proprietary, getting into a better business that is easier to scale up can be the way to go. But only if you are ready as an individual. Because this will require you to juggle your sole proprietary while it reaches maturity. A second business option is buy and sell, which allows you to find customers easier because “everyone is looking for something,” Haufiku advised.
A third business option can be transportation, like private transportation. The latter can cost you up to N$25 000 to N$30 000. Depending on your degree of exposure, use that knowledge to get into a business that suits your understanding.
Growing pains of starting a business
Stage 1: Doing it all yourself
Starting off your business requires some elbow grease. This means you have to do it all - from the job itself to marketing, finance and even managing your resources at hand. “You are the human resource; you are your own manager and your own employee,” Haufiku emphasised.
Stage 2: Hiring employees
Now being the jack of all trades has to come to an end. Having more clients than what you started off with can become daunting. Therefore, a second set of eyes and hands will be perfect to further ensure your business grows. Transfer all the knowledge you have and let them focus on one or two tasks.
Stage 3: More than 100 clients
Now it’s time to bring in the big guns by hiring specialists in their fields. This looks like hiring a marketer, sales specialist and public relations specialist. Having the big guns requires you to pay them the big money, which will lead to a higher return on investment.
Stage 4: Hiring board member
Now, advice goes a long way. The fourth stage requires you to hire board members to advise management on various tasks. They do not report to the CEO but rather advise the CEO along with the shareholders of the company.
Starting a business in Namibia
“Barriers to entry to do business in Namibia are very low,” Haufiku said.
Compared to other countries, Namibia has better grounds for the youth to start their businesses. The taxes are lower, whereas in other countries, tax laws can be a lot stricter and can see you get arrested if you miss the deadline to pay tax. Besides getting arrested, you can be required to pay tax whether you make a profit or not. This, however, does not mean that there are not problems when doing business in Namibia. Because of the lower population, the competition in certain industries can be higher as supply outweighs demand.
“You have to fight for a handful of clients until you have been around long enough as a small business owner,” Haufiku said. However, industries that can be an option to look into are energy, transportation and drop shipping.
Haufiku began his entrepreneurial adventure in 2009, during his second year of studying towards his bachelor’s degree at university, when the challenges of life forced him to fend for himself.
He saved money and invested into his own company after his first job as a radio station manager of the University of Namibia (Unam) campus radio in 2010.
Together with other shareholders, his companies today employ more than 13 people.
Do not start from a place of comfort
“If you do not have a strong resolution or conviction to do that thing, you can forget about even thinking about it,” Haufiku said.
Having a solution to a problem and feeling the grunts of life is an ideal place to start a business from, he added.
If you are not affected by the problem you are trying to solve, it can be more difficult to uphold your commitment to your business venture. This idea can further be seen as drawing inspiration from your environment.
There are, however, various people out in the world and the most driven and ambitious people are a few and far in between. Desire, ambition and success can be a curse or a burden to somebody as much as not having food can be a driving force for another, Haufiku said.
“There has to be something that sort of changes you from whatever docile, non-entrepreneurial human being you have always been that takes you over the tipping point.”
On your marks, get set, go
“Having a business is harder than any relationship you’ve had,” Haufiku said.
The venture to your adventure can be taxing (besides having to pay taxes) because there might be less support from your family members. The chances of being surrounded by like-minded people is a lot lower - unless you grew up with a family of entrepreneurs. Therefore you have to stop and ask yourself if you are ready, he narrated.
Operating in your domain of knowledge
“For somebody starting out on a shoestring budget, you want to start out with a sole proprietary,” Haufiku said.
Understanding the industry you will be playing in will go a long way to preparing yourself accordingly. Some industries might be easier to penetrate than others. Some businesses might be more capital intensive than others. Therefore, if you have nothing to start off with, a sole proprietary business will be best.
This refers to you offering a skill that you do as a business, for example doing nails. As your business grows, it will become more difficult to scale.
However, the right support in terms of having your basics covered while you are saving up is a better position to start from. Give yourself three to four years to understand your industry to scale up.
This is the same amount of time it requires you to receive your degree. Save and invest money while owning your sole proprietary to scale up your business.
Take what you can handle
“It is often in Namibia - as an import country - to find what you are looking for.”
After having saved and invested from your sole proprietary, getting into a better business that is easier to scale up can be the way to go. But only if you are ready as an individual. Because this will require you to juggle your sole proprietary while it reaches maturity. A second business option is buy and sell, which allows you to find customers easier because “everyone is looking for something,” Haufiku advised.
A third business option can be transportation, like private transportation. The latter can cost you up to N$25 000 to N$30 000. Depending on your degree of exposure, use that knowledge to get into a business that suits your understanding.
Growing pains of starting a business
Stage 1: Doing it all yourself
Starting off your business requires some elbow grease. This means you have to do it all - from the job itself to marketing, finance and even managing your resources at hand. “You are the human resource; you are your own manager and your own employee,” Haufiku emphasised.
Stage 2: Hiring employees
Now being the jack of all trades has to come to an end. Having more clients than what you started off with can become daunting. Therefore, a second set of eyes and hands will be perfect to further ensure your business grows. Transfer all the knowledge you have and let them focus on one or two tasks.
Stage 3: More than 100 clients
Now it’s time to bring in the big guns by hiring specialists in their fields. This looks like hiring a marketer, sales specialist and public relations specialist. Having the big guns requires you to pay them the big money, which will lead to a higher return on investment.
Stage 4: Hiring board member
Now, advice goes a long way. The fourth stage requires you to hire board members to advise management on various tasks. They do not report to the CEO but rather advise the CEO along with the shareholders of the company.
Starting a business in Namibia
“Barriers to entry to do business in Namibia are very low,” Haufiku said.
Compared to other countries, Namibia has better grounds for the youth to start their businesses. The taxes are lower, whereas in other countries, tax laws can be a lot stricter and can see you get arrested if you miss the deadline to pay tax. Besides getting arrested, you can be required to pay tax whether you make a profit or not. This, however, does not mean that there are not problems when doing business in Namibia. Because of the lower population, the competition in certain industries can be higher as supply outweighs demand.
“You have to fight for a handful of clients until you have been around long enough as a small business owner,” Haufiku said. However, industries that can be an option to look into are energy, transportation and drop shipping.
Comments
Namibian Sun
No comments have been left on this article