Unemployment in the UK is at its lowest level for many years, which is great. But that still doesn’t stop people wanting to give up good, secure jobs and work for themselves. Some people just have the urge to run their own business and follow their own destiny. Is it perhaps an entrepreneurial gene?
But, we’re always being told that the failure rate for start-ups is high. Statistics vary depending on who you talk to, but there does seem to be a consensus that 30% of new ventures fail within the first two years and up to 50% in the first five years.
So, if you’re one of those people who feel they’d like to start a business of some kind then what’s the best thing you can do to ensure it succeeds?
Well, first you need to look at yourself objective and ask whether you have the temperament and skills. If you’re going to open a shop or café are you good with people and can you organise yourself? Are your skills (cooking, haircutting, mending cars) good enough to compete with other businesses nearby? Do you have enough money to fund your project and also the support of your family or friends?
If you can answer ‘yes’ to all these questions, then next you need to be able to research the market to look at the demand for your products or services and what the competition is like in your area. And it’s complicated even more because now so many things are available online – you don’t even need a shop or office.
Probably the best piece of advice we can give you is to make a well-thought-out, detailed business plan. But why do you need a business plan?
Even starting a simple business requires you to take into account many different considerations. They include the business name, type of organisation, premises and equipment, financial and technological requirements, marketing, insurance, staff, administration, and many more. Unless you make thorough plans, there is every chance that you will neglect some important aspect and the business will fail.
Good planning has a number of other benefits. It will help you in the following ways:
It reduces risk.
It provides targets and goals to achieve.
You know how you will organise your business to achieve your targets.
It reduces the element of uncertainty.
It reduces stress.
It raises your confidence in your ability to start and run a business.
It gives you a framework which, once your business is established, will help you to identify and avoid potential problems before they arise.
In other words, with good planning you know what you are trying to do, and how you are going to do it.
In addition, potential lenders will insist on seeing evidence that you have planned your business properly before they will offer you a loan. And major customers, suppliers and your professional advisors may also wish to see your business plan.
No matter what you’re age, it’s never too late (or too soon) to become an entrepreneur. And if you feel you need some help in putting your ideas together and formulating your business plan then why not have a look at our Start Your Own Business Course.
Author: Diana Nadin
