I am probably stating the obvious, but don’t let anyone ever tell you anything otherwise .. running a business is HARD! It takes lots of work, dedication, tears and the occasional tantrum.
The statistics are saying that nearly 90% of start ups are still in business after 12 months, this is fantastic! But did you know that 40% (yes, 40%) fail by year 5 .. that’s a BIG number! So, how do you make sure that you don’t become a statistic?
1 MARKET RESEARCH
Is your idea a good one? Is it needed? Is there demand? Don’t just ask your friends and family as often they play the yes game and not want to upset you. Ask far and wide and to a variety of audiences, you will get a much more honest opinion that way.
The measure twice, cut once of the business world .. know your “stuff”, budget, forecast, know what will happen and when.
Over estimating growth within your business can be fatal, if the business doesn’t grow at the speed that you are planning then cash will become an issue (see point 5) but if it grows too fast then cash can’t keep up either and it becomes overstretched.
Getting the right people into your business is essential and I don’t just mean employees .. it’s the team and support you surround yourself with, those you network with, the freelancers you use, the people you talk to about your business plans and ambitions. Just like employees, you need these people to help give a rounded approach to your business .. a load of mini-you’s and “yes” people might sound great but the reality is you won’t get the support and traction that you need .. you need to ensure that they will truly listen, will challenge and push to get the best as well as supporting you.
Know what you will need and ensure that you have enough .. it will disappear faster than you expect and I’ve blogged on this before (https://simplified-accounting.co.uk/blog/cash-control) so make sure you have more than you need.
Be brave, be bold, be confident. You need to believe in what you do and why you do it.
There are no guarantees, no sure-fire ways to ensure that you don’t become a statistic .. if there was everyone would have their own business!
And remember .. at the end of the day it is actually ok if it doesn’t work out, it’s ok if you walk away and start again .. it’s what you learn and how you deal with it that will be what you take on to your next adventure.
But in the meantime, pop over to the resources and look at the Business Planning Pack to see if that can help you.