If you are starting a business, or just thinking about it, you must check out our Top 10 Tips For Starting A Business.
Up to one in three start up businesses fail within the first three years, so what can you do to be in the two thirds that are successful? The following tips from the great business masters will act as a check list for a sound start, and help to ignite your business growth explosion.
Do what you love or are passionate about
A successful business is going to be around for a long time, so do what you love. Turn your passion for the subject into the product or service that people want to buy; your enthusiasm will help your sales figures. Loving the business will help you put in the time and energy the new enterprise demands.
Start your business while still employed
A lot of business start-ups struggle through poor cash flow management. It is all very well having a good idea and a good product but it is also necessary to be able to meet short term cash demands. You need to eat, and have somewhere to live. While still employed you can reinvest all the income from the venture to grow your business, rather than worrying about paying the bills.
This will allow you to curb your early borrowing and avoid crippling interest repayment charges. Once you business takes off and you earn more from your new enterprise than your employment, you can switch.
Build your support system while planning the business
One of the most important principles of building a successful business is build the support system as you build the business. Basically, your network is your net worth. You can not build a business alone. This support system can include family or friends to bounce ideas off, but could include a coach or mentor to help with the unknown unknowns. Make friends with accountants and legal specialists and help them with their businesses. In return they will point you in the right direction and support you while you are starting up.
Get clients or customers first
In order to ensure you have orders in your book when you start, build your customer list before you officially start trading. This means that you may have to sell you products at a loss initially, or even give them away, in order to build your initial customer base. Treat your customers as friends, and build up loyal following; your best return at the start will be great testimonials.
Write a business plan
One of the common factors in early business failures is lack of a business plan. Or looking at it another way, failing to plan, is planning to fail. Business planning should cover aspects such as marketing, finance, sales and promotional plans, as well as detailed breakdowns of costings and profit predictions.
Do the research
Research your niche, and aim to become an expert on your industry, products and services. Take every opportunity to learn from others who may have more experience or new ideas.
If there are business support networks in your area join them, as well as any related industry or professional associations. Not only will this help to boost your network, and provide a source of potential referrals but but it will confer credibility and help with your expert status. Being a member of an industry-specific business organization is one way to contribute to the growth of your industry and keep up with advances in your field.
Many business organizations also offer other benefits to members, such as discounts on particular services or products, or special promotional opportunities.
Plan The Finances
Get the money lined up before you need it. Save up if you have to, and make a financial fall-back plan. This is much easier if you are employed, and have a source of income, but it can also include borrowing money from friends and relatives.
Insufficient finance often means that businesses are unable to take opportunities that are available to them, or have to compromise. If you plan the finances properly you can invest more in solutions that yield greater competitive advantage.
Remember to factor in the repayment of debt into your cash flow forecasts, and that includes borrowing from family and friends!
Build Your Professional Brand
Be professional from the Start. Show people that you are a professional running a serious business. This is a fundamental part of branding your business. This should include:
- Professional business cards
- Business phone
- A business domain name and website
- Business email addresses
- Treating people in a courteous, professional manner
Get the legal and tax issues right
To avoid problems later, get the legal and tax issues right the first time.
If you are in an industry with strong regulation, ensure that you have the correct registrations in place before you start trading. If your turnover of VAT taxable goods and services supplied within the UK for the previous 12 months is more than the registration threshold, or you expect it to go over that figure in the next 30 days alone, you must register for VAT.
Summary
So to be in the two thirds of start-up businesses that are successful, the Top 10 Tips For Starting A Business are summarized as:
- Do what you love or are passionate about
- Start your business while you’re still employed
- Build your support system
- Get clients or customers first
- Write a business plan
- Do the research
- Seek professional help
- Plan the finances
- Build your professional brand
- Get the legal and tax issues right
If you have started building your business and have incorporated the Top 10 Tips For Starting A Business already, then congratulations; your business is in the statistical group that is most likely to succeed. If you have started your business and have a few left to do, then that is great too, as you know what to do to help grow your business. If you are just thinking about started your business then the Top 10 Tips For Starting A Business are a good checklist to follow.
Follow the Top 10 Tips For Starting A Business to ignite your business growth explosion!