Things to Review When Running MSME Business – Before you jump into the entrepreneurs’ world, there are several things that need to be considered before initiating a business, namely the “dos and don’ts” of running a business.

For entrepreneurs, tips and tricks will be very helpful, especially to guide them to set the proper steps at the beginning of their entrepreneurship journey. These steps will be helpful for avoiding mistakes that might casually put the business at risk. So, here are the six things which must be avoided when starting your business.

1. Ignoring the business plan

A brilliant idea and newly-found motivation will not lead to a swift step when building a new business. Taking ideas out of your head and writing them down on paper are important first steps so that a business can be launched successfully. Having a business plan forces you to review every angle of the business idea, from your value proposition, marketing assumptions, to operational and financial planning.

2. Ignoring the market overviews

When starting a new business, you need to make sure there is a market to whom you can offer services or products. Imagine devoting time and money into a new business just to find out people are not interested in what you offer. Although it may seem complicated, understanding the market and why it is important will eliminate confusion and manage a growing business for the long term.

Here are some questions that need to be considered when determining the market: Who is your main competitor? How long have they been in the business? Is this business going well? What is the price charged by other businesses for similar products or services that you offer? Where are your main prospects?

3. Ignoring what the customers want

It’s not enough to assume that your business idea is good. Your customers must also think so. In order to succeed in a new business, you must invest in the target business audience and, like the market, know them well.

Ignoring their desires will put you on the fast track to failure. However, if you understand what they are looking for, you will gain trust from them and open the secret key to converting them from prospects to customers.

4. Ignoring the marketing and advertising

After understanding the market and getting to know the target audience, you must promote your new business to attract potential customers. Although it doesn’t have to be big, your business must have a marketing and advertising budget. When generating income, you can expand your budget in this area and focus on strategies that are better and targeted to grow your business.

5. Being inadaptive to changes

Business trend changes over time, and we call it the industrial revolution. Today, we are facing the 4th industrial revolution. Businesses in this era are marked with the integration of the Internet. In order to accelerate your business, make your business go digital. Choose the most suitable platform for your business acceleration needs.

6. Having insufficient funding

Another business acceleration need is an allocation of funding. Many MSMEs quit from expanding their business because of the absence of business fund. The difficulties of accessing loan have hindered MSME actors from growing their business.

There are ways to gain business fund, but there won’t be any funding if you don’t have proper financial records of your businesses as the collateral. Tokoin can assist MSME actors in creating proper financial records of business transactions.

By combining a digital identity and a digital ledger, Tokoin will be able to help MSMEs access credit scoring services. With this proper technology implementation, Tokoin facilitates MSMEs in recording every transaction as a set of data that can be used to comply with the requirement for financial transparency. This technology provides MSMEs with valuable assets which help them embrace economic inclusion.

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Author: Tokoin Official

TOKOIN is a platform that establishes the identity of MSMEs as an acceptable reputation in the business ecosystem. TOKOIN presents a better and modern business ecosystem that offers valuable partnerships to address inclusive growth. As a platform, TOKOIN captures and processes business information from the users as a valuable asset, which, in our ecosystem, translates to the trusted reputation of the MSMEs as our users to access previously inaccessible financial business services from providers which act as our partners. Therefore, TOKOIN links the business and financial sectors to launch a scheme of financial inclusion. The partnerships formed in TOKOIN will subsequently contribute to the national economic growth.