How to Start a Small Business in Ethiopia PHCS
How to Start a Small Business in Ethiopia
Are you planning to start a small business in Ethiopia? Then this article is right for you.
This is the best time ever to start a small business in Ethiopia. Running a small business in Ethiopia has become the new norm among school dropouts, students, aspiring entrepreneurs, etc.
Many businesses fail in Ethiopia because the owner failed to plan ahead of time or failed to have a visual look at how the business will be at each stage. As the saying goes ‘’failure to plan is planning to fail’.
If you want to start a small business in Ethiopia you must plan what the business would be like, calculate all the possible risks that the business would face, and how to overcome them.
No matter how small the business might look, note that every business without proper planning or calculations before starting that business has a 95% chance of failing. Thus in this write-up, we will take you on some of the basic steps you must follow in other to start a small business in Ethiopia.
These steps apply to all types of businesses, from starting a brick-making business to opening a restaurant, etc., you must follow these steps to avoid possible failure of your small business in Ethiopia.
Step 1: Identify a need within your community
Yes, identify a need or issue within your community that you want to solve or improve on an already existing one.
There is a general saying that if you want to make money in life, you either do something that adds value to a person’s life or does something that solves issues within them. The only reason you turn to buy something in your day-to-day life is that it’s solving an issue you are facing or helping you gain something better in value.
This thinking should be the first step you must take in life before starting a small business in Ethiopia. Identify issues or needs within your community and help provide a solution to this issue.
For example, if you live in a place where there are no restaurants or fast food outlets, you might want to solve the issue by thinking of the possibility of starting a restaurant. So only when you identify a need would you start seeing the possibility of looking for a solution for that need.
Step 2: Research your business
Now that you have identified a need within your community or area, the next crucial step to take towards starting a small business in Ethiopia is to carry out detailed research about the business you want to venture into.
Simple because there are no restaurants in your area doesn’t mean you should just start cooking food and selling it overnight. No, instead, do overview research on how the restaurant business functions in your community.
In general, research your business (or the need you have identified). Ask yourself, what do people want? What is lacking and how will I make money if I venture into this business? Etc.
Step 3: Choice the right business name
Now that you have identified a need and have conducted research about the business you want to start in Ethiopia, the next step is to come up with your business name.
You might be asking, but am starting a boil egg business or manicure business, do I need to have a name for this type of small business? The obvious answer is yes; every business needs a name. The business name helps to brand the business.
Business names help customers to always remember you, so make sure your choice is a sample and easy name that can easily be remembered by everyone.
Step 4: Develop a Business plan/Model
With the right business name in mind, you can go ahead and develop a business plan for your business. Having a business plan is vital to everyone who wants to start a small business in Ethiopia.
Business plans and business model canvas help you to visualize your business from the creation stage to how you will run the business on a day-to-day basis to how you will make a profit for your business.
Your business plan must not be lengthy, just map out something that can help you see how you will operate the business. If you desire to have funding for your business, then can you consider the possibility of having a detailed business plan?
Step 5: Choice the right location
Another important factor to have at the back of your mind when starting a small business in Ethiopia is the location where the business will operate. Many small businesses failed in C Ethiopia because of the wrong location. Choosing the right location can help you make a lot of profit.
Renting a place beside the road is indeed very expensive, especially if you are just starting, so it’s always good to have options. At the start you can start operating the business at home, with time, you will need to locate the business in a good location that can easily be accessible to your customers.
If, you want to start a small clinic or church, do you locate your business next to a nightclub or a sawmill workshop? The honest response is ’Hell No’’ Even though a clinic or church should be located on the roadside for easy access doesn’t mean you should operate your business next to a noisy environment.
So in summary, choose a location that can easily access your customers and also should be in an environment that provides comfort as well.
Step 6: Register your business
Once you have generated your business name, chosen a good location, and set aside a location plan for your business, then it’s crucial to register your business. Many start-ups in Ethiopia failed business that has not been registered.
Registering your business helps add credibility to the services you render. Get an authorization permit to operate your small business. This would save you more money or issues with the council and local authorities.
If you don’t know what it takes to register your business, consult someone who has operated the same business for advice, or visit the taxation office in your area and get all the details directly.
Step 7: Open a Bank Account for your small Business
One of the most ignored aspects many start-ups fail to take into consideration is to have a business account for their business. Have a business account that can enable you to save money, send money, or receive money. Never make it a habit to put business earnings together with your earnings.
Check out: How to Start a Hair Salon Business from Home
Step 8: Build your team
Not every business needs to be operated alone. So if your business requires you to work with others like employees, then make sure to choose the right set of people who have the desire to watch the business grow.
In most cases, you can build a great team with your friends or even family members. Working as a team helps goals or business success to be realized faster.
Step 9: Promote your business
No matter how small your business is, you will need to learn how to promote the business at every stage and time in the life cycle of the business. Promote your business through word of mouth, public advertisement, paid advertisements, sponsor posts, and paid ads.
Step 10: Move Your Small Business Online
The world is rapidly changing and so are businesses today. One must ignore the step towards starting a small business in Ethiopia by staying offline. No matter the type of business venture you are in these days, try as much as possible to have an online presence. An online presence allows you to reach a wider range of visitors or customers.
At the start, you can have a social media page such as Facebook. It’s free so why not take advantage of this opportunity? This is very vital for those individuals dealing with products and services. With time, set up a small basic website, this will help increase your visibility and presence to a wider array of people.
60 Small Business Ideas to Start Now in Ethiopia
- Start an event planning business
- Start an online blog site
- Start offering data analysis services to students
- Open a hair salon
- Start a manicure or pedicure service
- Start a cleaning services
- Start a laundry cleaning services
- Start a computer repair and maintenance business
- Open a car wash business
- Become a web developer
- Start a real estate business
- Provide a business consultancy service
- Become a hire private home tutor
- Write an E-book and sell
- Start a tricycle transportation business
- Become a graphic designer
- Provide SEO services
- Provide Video editing services to Youtubers
- Become a Photographer
- Offer language Translation services
- Start a content writing services
- Offer CV and Cover letter writing services
- Start a Dropshipping business
- Start a perfume business
- Start a travel agency
- Create a course and sell it online
- Venture into cryptocurrency
- Start a bakery business
- Start a YouTube Chanel
- Start a skincare business
- Start a Bridal Makeup Business
- Make beads and sell
- Venture into chicken poultry farming
- Start Micro Money Lending Business
- Start an Affiliate marketing business
- Open a Smoothie Bar
- Painting service business
- Epoxy floor decoration business
- Furniture making business
- Graphics, Animation, & Multimedia Design Business
- Ghostwriting Services
- Data Entry Services
- Sell second products
- Start a Relationship or Business Coaching Services
- Start a Home Massage Services
- Start a Tattoo business
- Open a Barbershop
- Tailoring, Alteration & Seamstress Services
- Canopy and chair renting services
- Start a T-Shirt Printing Business
- Provide Interior design services
- Weight loss consultancy
- Fruit selling business
- Start Ice cream production business
- Start a snail-farming business
- Start a Provision store
- Render Printing services
- Start a Waste recycling business
- Start Haulage and logistics business
- Ice block production business
10 Best towns/cities to start a small business in Ethiopia
- Addis Ababa
- Bahir Dar
- Dire Dawa
- Inda Silasē
Concluding Remarks on Small Business in Ethiopia
Many small businesses failed at an early stage because the owner failed to plan the business before engaging in it. So to avoid all the possible pitfalls of business failure, try to follow the listed steps on how to start a small business in Ethiopia.
Learn to identify a need, conduct research about this need, come up with a business name, generate a business plan for your business, choose a good location, register your business, build a great team, have an account set for the business, and most importantly learn to regularly promote your business.
We have come to the end of the 10 vital steps to take in life before starting a small business in Ethiopia. If you like this article, please like and share it with friends and family. Also, if you have any suggestions or questions, do leave us a remark in the comment section below.