July 22, 2024
Magazines

Do not blow money as a young business

In Uganda, allowing your business to grow organically is a wise approach. Avoid the temptation to rush its growth artificially. I’ve come to treat my business like a child, nurturing it through each developmental stage while acknowledging the realities it faces.

For Ortega Group, I’ve chosen not to establish a physical office at this stage to avoid unnecessary recurring costs like rent. Running a business here differs significantly from Europe or the US due to the high cost of capital in Uganda. Therefore, cost consciousness is paramount.

When it comes to hiring employees, I’ve adopted a flexible approach, reaching out to individuals on an as-needed basis for specific projects. This arrangement allows for efficient resource allocation without incurring unnecessary overheads.

Given that much of my retirement savings are invested in the business, I prioritize extending its financial runway. Compliance with regulatory requirements is crucial to avoid hefty fines, especially concerning taxes.

We’ve adopted a pull marketing strategy, focusing on developing a portfolio of work rather than aggressive promotion. Pro-bono projects serve as valuable assets to showcase our capabilities and attract clients.

In Uganda, business operations are seldom straightforward, necessitating readiness for potential pivots. In case of financial constraints, raising capital often involves offering equity, which can be costly. Alternatively, generating revenue and leveraging assets for loans are viable options.

While eager for growth, I recognize the value of gradual, sustainable expansion. External sources of capital tend to be expensive, underscoring the importance of self-funding where possible.

Maintaining a low-cost approach is essential for young businesses in Uganda. Avoid creating false impressions and focus on building trust through delivering quality work. Barter trade and collaboration with synergistic businesses can help manage costs effectively.

Understanding the nuances of enterprise sales is crucial, requiring patience and strategic engagement rather than aggressive pursuit. Lastly, staying focused on business priorities and learning to decline distractions are keys to long-term success.

As we progress, I’ll continue sharing updates. Currently, my primary expenses have been related to company registration and branding, with careful consideration given to recurring costs. It’s vital for young businesses in Uganda to exercise financial prudence.

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