Starting a small business is a big job. The promise of being your own boss has its allure, but along with the time, energy and money required, there are regulations to navigate and laws to understand. It’s a lot to take on, but thankfully for small business owners in Brampton, University of Guelph-Humber alumnus Prince Khan is working to help even the odds.
Prince transferred to UofGH’s Business program in 2012 and launched himself into campus life. Along with his classes and placements, he got involved with just about every business student society there was. He took part in the Advertising and Marketing Association, was a member of the Business Council, served as a vice-president of the Entrepreneurs Society and practiced business cases with DECA.
With DECA, Prince was presented with hypothetical business problems (called cases), and given a time limit to create and then present solutions. He says it’s something he still does with his work at the Brampton Entrepreneur Centre.
“Those experiences helped me to strategize and I still go back to them all of the time,” he says. “Competitions like that are all about using your business theories to solve problems, which is what I do to help new and struggling businesses.”
When he graduated in 2015, Prince didn’t waste any time before putting those business skills to work. In the time he’s spent working with business owners in Brampton, he says there are common mistakes he sees, and cardinal rules that small businesses need to follow to find success.
Before you get started
1) Research, research, research: A good idea on its own isn’t enough to make a company, so Prince says you need to do abundant research before taking your first steps. Once you have an idea of the type of product or service you’d like to offer, you need to go out and meet some potential customers. Prince says that, “you need to survey the people who would use your business and ask them that they want. I recommend interviewing about 50 people. Refine your idea, get it into a nutshell and incorporate the features that people are looking for.”
2) Make a business plan: You need a plan for how your business will run, including your marketing plan, how you’ll promote it, pricing strategy, the platforms you’ll advertise on, market research information, operational planning, and most importantly, financials. “Simply put, if your business isn’t profitable and won’t be profitable, you don’t want to run it,” Prince says.
3) Build a client base: Have a plan in place for how you’ll get the word out about your business. If it’s online, learn about AdWords, search engine optimization and place ads on Facebook or Twitter. “If you have a physical location, you’ll want posters, flyers and events that make you a presence in the community,” he says. “You need to generate the idea that you’re there.”
Mistakes to avoid
4) Those who fail to plan, plan to fail: “Sometimes, people get excited with their idea, so they just jump into it,” says Prince. Without thinking the process all the way through, though, you can hit more stumbling blocks. Just because you’re convinced you have a great idea doesn’t mean you have the financials or expertise to make it happen.
5) Hiring the wrong people: Once a small business is up and running, it can be too big of a job for one person. When it’s time to hire though, Prince says there’s a major problem that people should avoid. “The most common mistake is I see is business owners hiring people who have the same skills as they do. You want someone who can complement you and add value to the company. If I’m good at sales, and so are you, it means we’ve got a gap in marketing.” That mistake comes down to comfort — people like others who are similar to them and whose skills they understand. To avoid that pitfall, you want to build a team with diverse knowledge, so nobody is redundant.
6) Taking on too much money: “I saw a startup a little while ago that was looking for $1 million in investment,” Prince says. “They weren’t making any money yet, but they wanted $800,000 of it for payroll!” Instead of taking on too much money in loans and investment, start by thinking about all the things you can do on your own. When you have cash on hand, there’s an urge to spend it, so put off getting extra money for unnecessary expenses as long as you can.
7) Giving up too soon: Starting a business is a risk and sometimes the big break is on the far side of some very low times. While it’s smart to know when you’re in too deep, Prince says some people quit just before they make it. “Some people throw in the towel because it’s too hard. You need a certain personality to be an entrepreneur, you need to be a risk taker who’s willing to challenge the status quo.” When it comes to starting a small business, you only lose until you win.
When he isn’t helping small businesses, Prince is also taking part in UofGH’s alumni mentorship program, giving advice and guidance to current students.