It's true that there are many reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks. You will be your own boss and any extra hours you put in will directly benefit you. You will have more adrenalin kicks than you can imagine – from both the highs and the lows.  Running a business provides endless challenges and opportunities for learning.

Nevertheless, starting your own business is not a trivial matter. Over 50% fail in the first 12 months and only 5% last beyond 5 years. The main reasons for failure are:

• Lack of experience of running a business and poor knowledge of the market place
• Insufficient capital. You should allow enough cash to survive 12 months without earning a penny. Even then your earnings (profits from the business) may be low
• Poor location
• Too much stock of slow selling items
• Too much tied up in under utilised fixed assets
• Too much credit given to customers and not enough taken from suppliers
• Using business funds to finance a lavish personal life
• Overtrading. Being unable to service the sales enquiries.

The first steps of starting a new business include:

• Analyse why you want to become an entrepreneur. Talk to friends and family. Be honest. Don’t start the business if you are not sure.
•  Save up as much money as possible before starting.Remember you may need enough cash to survive 12 months or more.
• Plan to start on a shoestring. For example, large advertising campaigns are likely to be a huge waste of cash.
• Protect your personal assets. Weigh up the benefits of being a sole trader or limiting you liability with a limited company.
• Understand how you will make a profit. Produce a realistic profit and loss account and cash forecast. Profit is not cash until the customer has paid.
• Make a business plan, no matter how short. Present it to others and ask for helpful comments.
• Develop a competitive edge. Pursue the elusive ‘unique selling proposition’
• Plan to put all agreements in writing.
• Hire and keep good people while paying attention to the legal status of your workers.

To discuss a project or for more information call 0870 240 3139 or submit the form on Contact Us.