Building solid businessfoundations: It's the simple things that count!

By Sibusiso Raphekwane, founder and CEO of The Transformation Legacy

Starting a business is much like creating something so valuable that you foresee it lasting a lifetime. No one starts a business, only for it to close down after a few years. Every entrepreneur wanting to start a business does so with a clear purpose in mind - to grow it and create value so that they can sell it after a certain period; to build a successful business that the owner can then retire from. Either way, there is a specific end that the entrepreneur has in mind before the business even comes to life. This brings me to the first critical step to building a solid foundation for a sustainable business:

1. Start with the end in mind

It is essential to know what the ultimate goal is for the business. As an entrepreneur, how would you like to exit your business? It is much like building a house. When you start building, the first thing you do is to visualise what you want the house to look like. You, therefore, get an architect to design the home in line with the vision you have. So before you start, ask what would you like your business to look like when it’s operating at its optimal level and you are content and ready to exit?

2. Develop a comprehensive business plan

There is an unfortunate misconception that a business plan is a document that should only be drafted when funding is required. It serves a much-greater purpose. A comprehensive plan that details how you will go about achieving the ultimate goal of your business- ‘your end’. It’s crucial to develop a plan for the business. A good business plan should incorporate the following:

• Company vision, mission and values

• One to 10-year goals for the business with specific timelines and a detailed outline of the resources required

• Marketing plan based on market research & industry analysis

• Financial model and projections

• Human resources plan

• Operational plan: how will the business run on a day-to-day basis

• Company processes & systems

• Response to periods of uncertainty

• Action plan: how will the plans be implemented

• Business owner’s succession plan

This is a ‘live’ document, so it can be amended as and when new changes are implemented in the business.

3. Set up the right structure to enable you to achieve your goals

It is crucial for an entrepreneur to understand what he/she needs to do daily, weekly and monthly for the business to achieve its goals. Having the right structure sets the tone for the business Sibusiso ‘’Busi’’ Raphekwane is the founder and CEO of The Transformation Legacy, she is also a Business Mentor and Entrepreneur Development Expert.

and allows you to understand precisely what you need and who you need on board to achieve your goals.

‘’Give me 6 hours to chop down a tree and I will spend the first 4 hours sharpening the axe.” (Abraham Lincoln) I enjoy this quote because if you are starting a business, you need to spend time building a solid foundation which will enable your business to survive during difficulties, thrive during seasons of high opportunity and be stable when required.

Contact: info@transformationlegacy.com, 010 005 5753 or 010 023 0508 or visit: www.transformationlegacy.com.