Over 50% of business start-ups fail within only five years, and most of those fail in the first twelve months. There seems to be a commonality in the reasons why businesses fail at this early stage. Question is, does it really have to be like this? We think not!
Below you will find some easy to follow steps to make sure you don’t end up in these statistics, and if you do, that you have done no harm to yourself and others.
1. Make sure the numbers add up.
What is my break-even? How much money and turnover is needed to pay for your business costs, suppliers and get enough money out, so you can live without financial worries? You need to answer these questions before you start your business. Not doing so is asking for failure.
2. Trial your business idea.
There is no reason to quit your day job just yet. Work from home, run your business from 5 in the afternoon to 9 in the morning – it is possible. This will allow you to solve all those little problems you had not thought about, without the metre running, so to speak. There will be things you have not thought about, guaranteed.
3. Don’t use or borrow any money.
You are in business to make money, don’t start it by spending savings or borrowing from banks, friends and family. Prove to yourself that your business can work and make money. If you then “follow the money” – you may find that you do not need any extra funding.
4. Keep it simple and focused.
It’s nice to have the latest computer, the best car or any other gadget – but do you really need it to make your business tick? Probably not. Don’t waste money buying software or hardware, use online tools for your office – your office online – and make sure you can cancel anytime. Try before you buy and compare prices & features – often online software offerings are too expensive and too limited in their functionality.
5. Get a business advisor accountant.
The most important point last – get a business advisor accountant. These are often small accountants themselves and know how to plan cash-flow, they could even be your ‘virtual financial director’. While they might not be the greatest entrepreneurs, they certainly are the next best thing – a reality check for budding entrepreneurs. This will be the best money you ever spend, before starting your business. However many offer a free initial consultation – ask what cash-flow is and how to work it out.
Use these steps and failure becomes a friend and teacher, because you will have learned valuable lessons on how to become successful.
Read more about business planning @ winweb.com – Your Office Online.
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