Pierrepont Accountants

Tips for starting a small business

There is no golden formula for starting a business, but the fact that 60% of new businesses fail within the first three years doing nothing is not really an option. Outlined below are ten tips to consider in taking the plunge which you might not find in a text book.

1. If it is to be it is up to me

The nine most important two letter words. Speaking with numerous high flyers from corporate life one regret that many have is that they never ran their own business. If you are looking for reasons why not to run your own business you will never run your own business. Owning your own business can be scary stuff, but by taking action the odds against failure can be lessened in your favour.

2. Learn from history & best practice, then implement & repeat

Quite simply, learn about what works and what does not, everyday!

3. Be the answer, not the question?

Bring about a solution to an issue / problem that is all to real, rather than one that does not exist. Understanding the problems / issues that confront your target customers will help enable you to brand and market your business.

4. Keep it simple

Aren’t all the best ideas!

5. The devil is in the detail

Know your costs, there is no excuse. It is no good if income comes in through the front door whilst costs leave by the wide open back door.

Have a strategic marketing and financial plan, as a failure to plan is quite often a plan to fail. 

6. Worst case scenario

However remote, business failure is still a possibility, how would you handle no money coming in? Could / would you rely on savings and for how long?  Could you go and get a job, live with your parents / friends?  Prepare yourself for all the situations that could happen if the business idea doesn’t work out.

7. Don’t give up on the day time job (well not just yet)

Well not just yet, until you can consistently afford to pay yourself. The transition from employee to employer does not necessarily need to be simultaneous. Keep your nine-to-five and work on the business during off hours so you can earn during those tough, first stages. No one said it was going to be easy.

8. Be a good communicator

Be ready to speak confidently about your business, even if it makes you uncomfortable. As a new business owner, you will need to market and network constantly. From networking with clients to negotiating supplier payment terms, you must be able to communicate.

9. Know the legal requirements for starting a small business

Starting a business is exciting. Laws are not. If any doubt, ask a small business accountant.

10. Become the go to person

Rather than be a jack of all trades, be known for doing one thing really well. Let people know that via blogs and post where your target market hangs out. Posts should be topical and relevant with personality.

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