Having a business idea and actually starting up a company are two totally different things, and while having a great idea is part of the battle if you don’t plan things well then you could be joining the hundreds of companies each and every year that fail within their first 12 months.
To start up your own business you need a lot of experience and expertise in various areas and it isn’t just about doing one job you need to spin a lot of plates, especially if you embark on your start-up alone. Sadly start-ups and new businesses tend to make a lot of the same mistakes when setting up and these can include:
A lack of planning
Research and planning are vital when creating a new business, and while you can’t imagine every possible thing which could happen you can make plans for what to do in certain circumstances. When planning for a business it’s not good enough to just plan your first few months, you will want a solid plan for at least the first two years, if not more. If you don’t plan this far enough in advance you won’t know what you’re working towards. It’s easy to get carried away with a great idea but planning the viability of a business will stop your start-up from failing at the first hurdles.
Not seeking professional help
We all like to think that we have good knowledge on all areas of the world but the reality is few new business owners can claim expertise in all areas of their business from IT, development and technology to financial planning, taxation and accounting. Seeking professional help early on will help you plan your business better and have a good idea of what work you might need to outsource or get additional help with. Choosing a good chartered accountant to give you advice and help manage your accounts can make such a difference to the success of a start-up. Running a business can be draining but it’s better to seek professional help which may take someone a day to do well than you wasting a week doing the same task. By utilising your skills and seeking professional help in other areas you’ll maximise your chances of success.
A lack of funding
Sadly the world does revolve around money and not only will you need money for the immediate things such as production, premises, staff, promotion, design and more, you will need extra money in case you come across issues. There are numerous places that funding can come from perhaps a bank loan, a partner or an investor, but remember be realistic with how money you need. If you need more to ensure financial stability then ask for more because otherwise your invested money may be wasted if your business doesn’t stand the test of time.
Failing to control costs
Too many businesses spend too much money perhaps by hiring a ton of people which aren’t needed or blowing money on unnecessary expenses, so really make sure that you plan what is essential and when money needs to be used. You will need to ensure that every penny that is spent on your business is tracked and accounted for from travel expenses and building rent to website hosting and outreach marketing. Failing to control costs can halt and destroy a new business especially if you can’t afford to pay for your outgoings.
Growth requires a delegation of responsibility
Businesses need to grow in order to be successful and all great brands and businesses have branched out with new services or products to meet demand and grow as a company. With growing your business you need to recognise that you will need to delegate responsibility as running a business solely on your own can be time consuming and difficult when differing expertise are required. As a good business owner you need to recognise when you should delegate responsibility of tasks or new projects to other people who have better suited expertise and the time to invest in making it a success, by keeping everything to yourself you may find things too much to cope with.
If you’re lucky enough to be in a position to nail the above things then you are half way towards building a successful business.