Up and Running

After a couple years of working for people,  I decided that it was time for me to start my own business. Mind you these couple of years were exactly that. So I am at square one: A university graduate with a first degree and two - three years work experience under my belt, about to take on the mammoth task of running a business. I was kind of aware that doing business in JA was a bit rough, but I swear, the environment in which we operate, you have to be a champion hurdler to to survive.

 So first is first:  kudos to all the businesses operating in Jamaica right now who have passed the five - year benchmark. You guys are miracle makers. Worse coming out of an economic environment where unsecured loans are in excess of 30%, credit card rates are in excess of 47% from some banks (won't call names) and you have to reveal down to the colour underwear you have to acces government financing, and miraculously if you obtain it have to struggle through cash-flow, as there is no such thing as COD ( Cash on Delivery) in a Jamaican economy. (Not complaining though, just observations)

All this made me realize that when taking such a step as to venture into business ownership and management, preparedness is key. There is a three step rule which applies to running businesses period.

1. Make informed decisions.
2. Secure Adequate Financing
3. Mistakes and Disasters will happen. Communicate, fess up and stay on course.

 I found "Starting  & Running a Business in Jamaica" written by Kimala Bennett, a life saver. It outlines most of the procedures for starting & running a business and made getting the structure and shape and some of the legal framework which goes into setting up a business much more manageable and less time consuming as her procedures are pretty straight forward. Calling around and talking to some of the agencies was also helpful, as sometimes there are industry specific considerations that need to be followed, and they are very insightful when it comes to areas such as manufacturing. Places like the Jamaican Manufacturer's Association (JMA) as well as the Private Sector Organisation of Jamaica (PSOJ) are able to give you  industry specific guidlelines that will help you in your field.

It is one thing to secure investment, another thing to maintain it, and a whole different kettle of fish managing cash flow. For businesses starting with really great ideas and a wonderful customer base, a word of caution. Pace yourself. There is nothing worse than having a good reputation take a nose dive as  a result of taking on more than you can manage. Words of advice - find a really good accountant. Not only to do your books, but find and establish a working relationship with your accountant/ financial controller. They will be able to guide you with decisions as it relates to selecting financing, timing of cash flows,  loan repayments, investment scheduling, payment scheduling and even pricing to ensure that you are able to cover all your costs, pay your staff, suppliers expenses and manage your receivables.

Making sure your informed, and securing the right financing are key, but what matters most in business is the relationships you form with your clients.
(Bird in the hand, two in the bush concept).
Identify your bread winners and ensure open and honest communication with them. At times there will be instances where you may be afraid of confronting an issue, but experience has taught me that it is always best to be direct and keep them informed so that they may plan accordingly. Decisions have consequences, so be prepared to think these situations through and seek counsel from people with experience and remember that in business you are only as good as your last performance. Maintaining a standard is key.

Now with a business up and running, I can't wait to see what other challenges are in store!!!!