Starting up and running a new business is not as easy as you think, remember many new business’s fail within 2 years. This is due to several factors, following is a short list of things to do pre-start up..
- Do your research is there a market for what you want to supply.
- What’s the competition like.
- What is your USP ( Unique Selling Point ) are you specialising.
- Check margins between buying and selling.
- If your planning to be in retail then check foot fall or chimney pots i.e. potential customers.
- Again if retail, customer access such as parking and passing trade.
- These days high overheads are a killer for small business.
- Make a cash flow forecast to make sure you have enough funding.
- Decide on staffing levels and relevent employment law salary etc.
- Remember a partnership is often a sinking ship.
Starting a new business is not for everyone, some people are simply not cut out for being their own boss, they don’t like the responsibility..they prefer to be lead than to be a leader..it can be a lonely experience, often only you can make the decisions which a business will stand or fall on.
You will make many wrong decisions running a business it’s inevitable though, as long as you make more good choices than bad ones you should be fine.
You will need to be properly funded, be aware that UK banks are fair weather sailors unlike Continental European banks who are in it with you for the long haul. Many good business’s have been brought down by “computer says no bank managers! ” A good tip is to use the 1/3 rule..1/3 of your cash to set up, 1/3 to run the business or working capital 1/3 in reserve for the rainy days.
I have to say it again, a good business plan and cash flow forecast is essential to running a business.