Struggling to get your business started?
We have helped turn inspiration into reality by providing that initial strategic support to help them establish an achievable business plan, assess their funding needs and raise that vital start-up capital and debt.
It’s said that genius is 10% inspiration and 90% perspiration. We have been helping people turn their inspiration into reality for over 20 years and we know it’s not easy. In fact, it can mean long, long hours, coping with disappointment after disappointment and keeping the wolves from the door.
So, here are our ten top tips for making it a success:
1. Believe in what you are doing, passionately!
So make sure you’ve carefully thought it through, discussed it with family and friends and set yourself a realistic timeframe for achieving success
2. Evaluate the scalability and speed of success of your business to set expectations
Most business plans start out in life with outrageous growth rates relying on significant scalability and assuming success is just around the corner.
3. Build the right team
Having expert advice around, such as one of our experienced finance directors, that can bring years of experience to bear in a short meeting is invaluable and affordable. This applies to marketing, HR support, IT and other support functions. Don’t confuse compliance (book keeping, tax returns and Companies House filing) with key strategic financial support.
4. Have an effective business plan
This is a critical tool to help you communicate your vision and plans to your team and outside stakeholders. Get your finance director to review and challenge it. It needs to be clear, concise and make sense financially!
5. Get an effective forecasting tool
Most businesses see a forecast model as one off exercise to raise some money and then forget about and they are missing the point! Your forecast model should be used continuously to enable you to evaluate the financial impact of your decisions, which should be changing all the time to take account of the lessons you learn on your journey.
6. Protect your IP
Lawyers are expensive and protecting your IP is one of the occasions when you should spend the money. If you don’t believe that one day it will be worth something, why are you doing it?
7. Control costs
Most start-ups are good at keeping the overheads down. Working from home, using a virtual office etc. However, typically these costs are insignificant when compare to research, development and marketing spend. Your part time FD can help you manage contracts and set realistic milestones to limit costly overruns and ensure suppliers take on the appropriate level of responsibility.
8. Learn from your mistakes
Albert Einstein defined Insanity as doing the same thing over and over again and expecting different results. If it’s not working, talk it over with a confidant, like your FD, and ask yourself if you have the right expertise on the team.
9. Keep your funders/investors informed
Produce regular management information and compare actual costs and revenues against budgets. Evaluate the results honestly, keep all relevant stakeholders informed and identify the need for more funding as early as possible.
10. Pause for breath
Find the time to get out of the business and evaluate how you are doing. Re-establish that belief and passion that you had at the beginning and go for it!
CTA – Contact us for help with your start up.
CTA – click here to create a model of your idea using the Corporate cashflow calculator, the only App in the world for modelling new business cashflows to the satisfaction of lenders and investors.
For an initial discussion on how we can help you prepare for sale, contact us today.