30 TIPS FOR SUCCESS
1Asses your own strengths and weaknesses realistically before you start the business. Try to overcome any shortcomings you have spotted, by training or using an adviser or consultant or part-time employee.
2Don’t choose to set up your business in a declining market sector. Instead opt for a sector that you think will continue to grow. Swimming against the current requires much more effort than going with the flow.
3Your idea doesn’t have to be unique or original. Businesses can prosper if built around well-worn ideas that are carried out better than the current suppliers’ offerings.
4Try to choose a market in which you already have experience, for example, through your previous employment or business.
5Find your own niche in the market that you think you can exploit, preferably a niche that doesn’t have just one or two big players.
6It’s easier to sell a product that meets some already perceived need, rather than to try and educate a market.
7Spend as little as you can when you start – try to work from home, use freelancers, start online. Keep bootstrapping as long as you can.
8Don’t underestimate how long it will take to get your first sales or overestimate how rapidly they will grow. Never underestimate your costs.
9Make sure you have sufficient finance to cover the initial period before your business breaks even, either by saving money before you start so that you can cover it yourself or by finding a backer or lender to support you.
10Get your family on board before you start. Starting and running your own business can be all consuming. Family support in all ways can make a difference.
11Look for a mentor – someone who has already been there and done it for him- or herself. It doesn’t need to take up a huge amount of their time – contact can be online as well as face to face. Many experienced entrepreneurs are willing to give time and advice to help a fellow, if aspiring, entrepreneur.
12You can’t start a business without taking a risk, but try to avoid unnecessary ones.
13Be self-disciplined. Keep organised. Set your own no-go areas.
14If you don’t already have a thick skin, then build one. You need a strong belief in your offering despite the criticisms or carping that inevitably you will receive.
15Networking is a totally underrated skill for an entrepreneur. Equally, your networking needs to be focused, otherwise you will run out of time and achieve little.
16Doggedness is the most attractive quality for an entrepreneur. Persevere through setbacks – there will be many.
17Indecision can be an entrepreneur’s enemy. Get the facts, analyse, consult with others and then be decisive.
18Learn from your mistakes and failure. Look at this process positively and convince yourself that this will mean you are a step closer to getting it right!
19You need a balance of skills. If you are aiming at founding a larger business, this means building a team that is compatible and with complementary skills. If you are on your own, it means acquiring the skills. Digital, financial and selling skills are the prerequisites.
20Start with a minimum viable product and grow from there. Adapt the product as you go.
21Don’t set the price too low – differentiate your product so that people are not choosing it because it’s the lowest priced.
22You are likely to be your business’s best salesperson, so don’t shy away from this role. If you need more confidence, put yourself on selling skills courses.
23Producing a business plan helps you keep control of your business. Compare budget figures to actual figures and understand why they differ, then adjust your business model.
24It’s a lot easier to sell to an existing customer than it is to find a new one every time you make a sale, so look after your customers.
25The key to gaining new customers and keeping existing ones is to gather data and information about people who might buy or might buy more. Be prepared to answer any questions that your customer might have.
26Make sure you follow ‘correct’ procedures when dealing with staff. Treat them reasonably and engage them in your business.
27Control your cash flow very carefully. Make sure you have the systems so that you can do this. It’s a cliché, but nevertheless true – cash is king.
28Don’t allow your customers to take a long time to pay you and don’t rush to pay your suppliers.
29Negotiation is everything. There are no rules. Jettison any preconceived ideas about what is reasonable or proper.
30There are just three ways you can improve your profits. You can cut costs, increase sales and increase prices. Tiny improvements in all three areas can lead to a substantial difference in your profit levels.