My tips are worth considering because starting a business has been a huge learning curve for me and I have made every mistake possible so hopefully my advice helps somebody else 🙂 I think that the reason that a number of successful business people try and fail the first time (or first few times!) is that they tend to have a dogged determination that sometimes gives them a blinkered approach to business.
They tend to want to run before they can walk but eventually it is that resilience, fight and drive that ultimately allows them to succeed.
Do:
Decide if you want your business to be a lifestyle choice or if you want to create a company. What’s the difference? A lifestyle business tends to be something like a consultancy, where you can decide if you want to work 20 hrs a week or 80hrs a week. You can make a very comfortable living with this type of business but you’re unlikely to become rich or famous from it unless you’re somebody with very specific skills that are extremely rare and in high demand. Your success is often dependent on reputation, networking skills, and the ability to secure repeat business. When you’re creating a company your end goal tends to be further down the line. In my opinion, you have to be slightly mad to go for this option because often it means putting your life on hold for a number of years and living in poverty in the meantime until you are successful, however, if you are successful the end results can be far more fruitful.
Be in a position in your life financially where you can afford to support yourself without a steady income, often despite your best plans and customer commitments it takes a long time before you have a steady flow of money to support yourself.
It is ideal if you are free and single to start a business but often people aren’t, I wasn’t. If you are taking the risk it is normally better if your partner has an income so that you have some sort of stability. If you have a mortgage or personal loans it may be an idea to sit down with your bank and look for a six month moratorium on those payments so that you have a chance to get started not having to meet huge personal commitments. It’s always best to go to the bank before your repayments are a problem rather than waiting until you are in arrears.
Go into a sector that you are an expert in. If you are operating in business in a certain area then you are expected to be an expert in that area. Very few people succeed in a business that they don’t know inside and out and even when you do know your area well it is still difficult to succeed.
Go to local enterprise boards to look for funding. Depending on your business area you may be eligible for funding and it can be a huge help starting off.
Consider taking a business partner, ideally somebody who has a differing skillset to yourself so that you can share the burden- a problem shared is a problem halved, it’s very true!
Don’t:
Start your business without plenty of money-whatever you think it will cost, and despite having quotes etc., my advice, double it!
Get everything in writing, without exception and read everything thoroughly before you sign it. This may sound like something very basic but I’ve signed things where I agreed something verbally and only glanced through the written document and I have been caught out where the detail is not what it should be-stupid I know but when you’re working long hours and you’re very stressed you can do silly things. Also, this may sound very sceptical but get everything in writing!! I can’t count the number of times that we have been promised something or agreed on an arrangement verbally and then the other party reneged when pushed.
Don’t be afraid to give away equity for investment. If you are lucky enough to be offered investment spend time making sure that the deal is right for you, but don’t be greedy because remember your company is not worth anything until you make money (unfortunately no points for effort ). A smaller percentage of something big is better than a big percentage of something small.
Don’t give up! Having a business will afford you the highest of high feelings and the lowest of low feelings and there will be so many times where you will just cry and say ‘why the hell did I give up my nice secure job for this?’, but dealing with problems everyday is something you will become an expert at and it is that utter drive and resilience that will push you forward to success.
Finallly, the biggest must do is work at something you love and are passionate about!
I really can’t emphasise this point enough because if you love what you’re doing then going into work everyday and working crazy hours doesn’t seem so bad, your passion will pull you through the toughest days.
Passion comes across very clearly and in my opinion it is a common denominator in all successful entrepreneurs.
