1. Choose a specific customer and problem
Replace “everyone needs this” with a clear person and need. For example: students near one campus who need affordable printing before morning classes. Ask how they solve the problem now, what frustrates them and what they actually spend.
2. Test demand before making a large commitment
Speak to potential customers, compare existing alternatives and trial a small version of your offer. Record real enquiries, sales, repeat purchases and reasons people decline. Likes and compliments alone do not establish demand. Honour delivery, refund and safety obligations when running a trial.
3. List startup and recurring costs
Separate one-off equipment and setup costs from stock, transport, rent, data, wages and other recurring payments. Include a realistic allowance for mistakes and delays. Identify the cash you can afford to put at risk without using money needed for household essentials.
4. Check pricing and break-even
Subtract the variable cost per sale from its selling price. This contribution helps cover fixed costs. Break-even units equal fixed costs divided by contribution per unit, rounded up. If contribution is zero or negative, more sales will not cover fixed costs.
5. Plan cash timing and currency
Customers may pay later than suppliers require payment. Forecast receipts and payments by week or month. Keep currency labels explicit; do not add USD, ZiG and rand amounts without a documented conversion assumption. Test what happens if a customer pays late or input prices rise.
6. Verify registration, tax and permission requirements
Check the appropriate business structure and registration process, ZIMRA obligations, local-authority licences and any sector-specific permissions before trading. Business registration, tax registration and permission to conduct a regulated activity are distinct checks. Requirements depend on your activity and circumstances.
Start with ZIMRA’s guidance for new businesses and your relevant local authority. Confirm current rules with the authority or a qualified adviser. No fixed fees, tax thresholds or processing times are assumed here.
7. Keep records and review the first month
Track sales, cash collected, stock, costs and owner withdrawals separately. Keep supporting receipts. Review which products earned a contribution, which customers returned and whether cash covered commitments. Decide what to change before expanding.