Log in to become a member of Mark Bartley's Fan Club!
Starting your own business can also be stressful and highly challenging. Each opportunity to do your own thing, each decision you need to take deserves proper consideration, organisation and planning. Your future depends on it. Before you get going you absolutely must prepare and plan. Though not guaranteed to bring you success carefully preparation will certainly help you on your way and reduce the chances of your new business falling by the wayside.
Act in haste repent in leisure, as they say, so plan, plan and plan again. All too often, people rush into starting their new business without being properly ready. Maybe they're just so fed up working for another company, maybe they're a little over excited about doing their own thing. Either way, without proper preparation your business may be doomed from day one. What do we mean by preparation?
Well firstly an awareness of the financial realities involved in running a business. Know clearly that it can take months or years to make a profit. You must have sufficient funds to enable you business to operate. Save up as much money as possible, including your living expenses for the first year, or even two before you launch. Even if you land plenty of business straight away and your customers pay you on time, (not a given in this day and age) you will want to invest most of that money back in the business to build on your initial success. Investing in additional space, equipment, advertising, staff, technology, stock and insurance needs cash. The problem with starting your business on credit cards or with big loans is that you're limited in the amount of quick reinvestment you are able to make, as you will need your profits to repay loans. If things don't go as well as you'd hoped then lenders are likely to start getting nervous and look at calling in loans or refuse to renew them. This could leave you with cash flow problems.
Research also plays a major role in determining you likely success or failure. Without a clear understanding of the industry you are entering and by failing to identify you target customer you severely compromise your chances of success.
Take the time and the trouble to assess the trends in your industry. What aspects are growing, what are declining? Take your business concept, your idea and conduct a full and thorough SWOT analysis (Strengths, Weaknesses, Opportunities and Threats.) Where can you position your new business in the industry to maximize your chances of success? Does your industry even have a future? What's the prognosis in light of the radical global changes we see today? What about new technologies? Do they offer you the chance to differentiate your proposition? Does technology even threaten the very existence of your industry? Radio 4 ran a comedy sketch interviewing an old envelope glazer from Chesterfield, an artisan whose handcrafted oak-framed envelope windows were no longer in demand due to modern production methods and the introduction of new plastic or glassine envelope windows. Whilst tongue-in-cheek it, the message was serious. How might technology be impacting on your industry? Look before you leap onto a sinking ship - what's referred to as a "sunset industry".
What about your prospective customers, your target audience? As well as ensuring you have a clear and thorough understanding of your industry it's vital you understand your customers, how they think and what motivates them. How do they buy and where do they buy? You need to get inside their heads. Only research and preparation can enable you to do this.
Sorting out things like office supplies and all the surrounding administration processes is important when starting a new business. Read more about getting things right in business in Mark's series of office and business review articles.
Disclaimer: All information on this site is provided for informational purposes only! By no means is any
information presented herein intended to substitute for the advice provided to you by any health care or other professional
or organization.
tweet this!