A Handy Guide

Avoid the Business "Start Up" Pitfalls

Use the guide as a handy checklist. It will prompt you to consider some of the key issues before you take the plunge!

1. Why are you doing this?

   Moving from a stable, regularly paid job is a big step financially. So you need to temper your enthusiasm and think about why you want to make this change.

   It may be that the choice was made for you through redundancy. Or perhaps the passion to start your own business has finally been released.

   Setting up and running a business is a time consuming task - you need to be dedicated and focused and able to structure your time in order to be successful.

   The rewards of starting up your own business can be great, but think carefully if you have the attributes and right sort of personality to cope with going it alone.

   Ask yourself these questions:

   • Do I want to work alone or will I be employing people?
   • What will I live on whilst the business is getting started and how long will it last?
   • Will this last or do I plan an exit sale at some point?
   • What will I do if it doesn’t work out?

2. Legal Structure

   I am an advocate of keeping it simple and this is sound advice for a new business.

   You will need to decide what business structure you will trade under (sole trader, limited company or partnership). Each places different obligations and responsibilities on the owner of a new business.

   Read more about these by following the link to Keeping it Legal.
   
   

3. Competition

   Before you do anything else, thoroughly research the competitors in your chosen industry. Do not be complacent and sidestep this.

   Take time to identify any weaknesses they may have and try to ensure your product or service is tailored to better serve your clients needs.

   Follow the link for some useful ideas on how to review your Competitors
   
   

4. Marketplace

   If no-one wants to buy your product or service, no marketing campaign, however brilliant, will deliver success.

   Before you commit, make sure that there is interest in what you want to provide. A Start Up business should ensure that the market for buyers or users is strong in the area they intend to set up in.

5. Making sure that you have Funding

   Even if you have the best idea in the world, it is unlikely that you will be an instant success.

   Be conservative with your funding estimates and save enough money to keep you going while the business goes through its initial stages. You can also present your bank manager with a well thought out business plan and request sufficient start up funds.

   Why not look at my Tops Tips to Finance your Business.
   
   

6. Key Skills

   Identify your skills and particularly your weaknesses.

   Be honest and ask friends and colleagues for input. Always hire people with complimentary skills or seek professional guidance when you need it.

   Follow the link and check out why you should consider hiring a Business Coach.
   
   

7. Business Plan

   Every business, no matter how small, should have a Business Plan.

   It is amazing how many thoughts and ideas can evolve if you put all your thoughts down on paper in a structured format.

   If you are seeking funding, you will need a well thought-out plan. A plan will also help you focus on your goals and ensure you are less likely to stray from your real priorities.

   Want some ideas?, then follow the link to Business Plan.
   
   

8. Employees

   As your business expands, you may well need to hire people to manage certain aspects of your operation. You need to ensure the have the right skills for the job.

   Gain support and guidance when you are recruiting, particularly if you are not experienced at going through the process. Mistakes can be time consuming and very costly to your business.

9. Business Advice

   When running your business, a few words with a trusted adviser (accountant, lawyer, business adviser) can make the difference between success and failure.

   Before hiring a professional, you should meet several and see if you “click” with them. Don't necessarily make the decision based purely on price.

   Follow the link and check out why you should consider hiring a Business Coach.
   
   

10. Biggest causes of failure

    The biggest causes of failure for start ups are:

    • Setting your sights too high
    • Not researching your market thoroughly
    • Hiring the wrong staff and not putting enough funds aside for contingency.
    • Not controlling your cashflow

Keep an eye on these potential pitfalls at all times!


If you want further help and support to ensure you generate success, please follow this link to Contact Us or call 0845 408 5978

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