“When it comes to business ideas for learners (university students), the biggest tip I can give is to look at your circumstances and environment and try to identify where the biggest challenges are,” says Jalal Ghiassi-Razavi, association director at the Allan Gray Orbis Foundation.
“What are the biggest pains you see in your daily routine? The chances are, if it’s a pain for you, then it’s a pain for others as well. This is something that is worth exploring and one of the things we teach our beneficiaries on the Allan Gray Orbis Foundation Programme,” Ghiassi-Razavi adds.
The Allan Gray Orbis Foundation targets matric and university students. The foundation provides its fellows with funding for university, in addition to access to support and development to cultivate an entrepreneurial mindset.
Successful South African entrepreneurs who are foundation fellows include, Maurice Madiba, founder of Cloud Atlas Investing, a Johannesburg-based investment firm, Yoco CFO Bradley Wattrus and Melvyn Lubega, co-founder of global learning management system, GO. They put the valuation of fellow businesses at R850 million.
One of the benefits of being a student is that they often have a skillset and passion that they’re already following, says Ghiassi-Razavi, especially given that you are studying a particular qualification.
“Combined this with the energy of youth and you’ve got yourself a powerful weapon in the bid to generate some money on the side.”
– Identify the pain points
– Decide on a service-based or product-based business
– Validate your idea
– Open up your shop
Now, there are two routes to businesses that you can explore as a student. The first involves the provision of services – “Service-Based”. This is likely the easiest route to take as you don’t need much capital to start these types of business. All you need is some time, and with the energy levels that students have these days… time should be aplenty. Service-based businesses typically involve the selling of skills, competencies and resources.
While these types of businesses allow you to start with relatively little capital requirements, they are more difficult to scale given that you need resources to deliver value. In service-based businesses, the skills are not separated from the provider.
The second category of business is “Product-Based”. These businesses sell a physical, tangible product, which can be in the form of an actual good or in the form of a service that is delivered through a system/software solution (which is the product).
The beauty with product-based businesses is that they are able to scale given that you do not always need new resources to deliver the required value. The challenge with these types of businesses, however, is that they require some form of investment, whether to develop the system/solution or in the form of working capital (goods that are eventually sold).
The earlier you get in, the better. The nature of start-ups is that you’ll likely pivot
Just do a Google search and you’ll find thousands of potential ideas to pursue. Having a great idea though is not what makes you successful. Identifying a problem or need that is worth solving and having the ability to execute or deliver is what counts. So start engaging on a journey of whatever sort. The lessons learned will no doubt serve you well in the future.
The biggest piece of advice is to work on establishing “product-market fit” before formalising your business. We all have ideas for business ventures. The question, however, is whether or not there are customers that are willing to pay for your product/service. Without buyers, you don’t have a business. Get out there, engage with your target market, understand what their needs and pain points are.
This will help you to identify exactly what it is that you can look to solve. Once you’ve done this, put your product/solution offering out there and see how they engage with you and your product. If things start to get serious, then you can look to formalise a business. If not, then pivot and try a different approach or offering to address their needs.
There are plenty of resources available on the web relating to how to grow and develop a venture. The first and most important tip that I can give however is to just start! Take the first step. Don’t worry about getting all your ducks in a row.
The earlier you get in, the better. The nature of start-ups is that you’ll likely pivot, multiple times as you search for that “product-market” fit. Some businesses will succeed, many will fail but, if you consider it a journey of entrepreneurial development, you’ll better position yourself to be a success, if not now then certainly in the future. The key though is to start the journey.
A great analogy is to think of someone that is looking to get a fit and healthy body. Going to the gym for a single 24 hours session will not give you the results you are looking for, however, going to the gym for the same 24 hours but split over 30 minutes, 3 days a week for
Opportunity is everywhere. Anytime you’ve had a thought such as “wouldn’t it be nice if” or “why don’t they?” or “why isn’t there?” or “I wish there was a” or “this is really frustrating” or “where can I find a?” then get excited because opportunity lurks.