While the thought of starting one’s own business may be exciting, it can also be intimidating – even for someone with a successful business career behind them. The difference between owning a business and working in one is significant – as an owner you’re directly responsible for every aspect of the business’s success.
The good news is that, by following a few basic rules, it’s easier to start a business than you think – and the chance of success is much greater.
Choose an option that’s right for you
When thinking of starting your own business, choose one that will suit your lifestyle and preferably one in which you have some direct knowledge and experience. For instance, if you want to work regular hours, opting for a fast food franchise is not a good idea. Similarly, if you’re thinking of buying a boat-building business, it is important that you have some knowledge of what is involved, even if you are not a professional boat builder yourself.
Do your market research
Market research does not have to be complicated. It is important to make sure that there is a need for your product or service, though. Check out whether there is any competition already established in your area, whether your offering is unique or whether it fills a special gap in the market.
Draw up a business plan
Writing a business plan is like drawing up a road map. You are not likely to reach your destination unless you know where you are going and what you will need to get there. Like market research, this does not have to be complicated, but you need three or four pages that will give the business operational and financial direction.
Choose a specialist investor
When looking for investment, choose a company that has specialist knowledge of the challenges facing entrepreneurs, as well as of the sector in which you intend to work. This could be one of the most important decisions you will ever make – for yourself and for your business.
Employ the right people
Not all startups employ people from the start, but if you do, it is important to choose carefully. In a small business, people spend a lot of time together, so you need to select employees that you feel you will be able to work with. Also, choose people that have experience in the business you will be starting – this will give you a valuable support system.
Market your business
Business does not come to those who wait – it comes to those who go out there and tell people what they have to offer. Even the smallest business needs to market its services by, for example, placing ads in the local papers, distributing flyers, putting up notices in shopping centres, recreation centres and schools and developing special offers for special needs or occasions.
Put in financial systems from the start
Even if you are not a financial expert yourself, put in simple but solid financial systems right from the start. There are excellent, user-friendly software packages that can be used to do this and it is even worth contracting the services of a bookkeeper or other financial professional to assist you on a regular basis. Lack of financial discipline is often where startup businesses go off the rails.
Manage your cash flow
Cash is the life-blood of a business and it is important to manage cash flow carefully. The right investor will be able to assist you in doing this.
Supplement your own knowledge with specialist skills
No entrepreneur can be a specialist in every aspect of business and it is important to contract specialist skills and services when you need them. For example, if you’re thinking of setting up a small factory and do not have much knowledge of the production process, an experienced production manager will be worth his or her weight in gold.
One of the best things about owning and running your own business is that you have total independence. There will be good days and bad days, but it is important to enjoy what you are doing. Owning one’s own business is an adventure – enjoy it every step of the way.