Most of us dream of starting our own business at some time or another. Dead end job, horrible bosses, redundancy, a need to express yourself, thoughts of untold wealth and a passionate belief that you can do it are motivators for people to break away from the mundane 9-5 life.
The rewards for starting a successful business include wealth, self-realisation and a hugely improved lifestyle but small business mortality rate is high. According to an article on Fundera, “20% of small businesses fail in their first year, 30% of small business fail in their second year, and 50% of small businesses fail after five years in business. Finally, 70% of small business owners fail in their 10th year in business.”
Why does this happen? Lack of capital or funding, poor business model and ineffective sales and marketing initiatives are key culprits, so it is worthwhile doing your research and planning before you leave the relative safety of your 9-5. Ask yourself some key questions.
Do I have a viable business idea?
Who are my customers going to be?
What needs do they have?
What’s the competition?
What skills and resources do I have?
What skills and resources will I need?
How will I bridge the gap between what I have and what I need?
Can I afford to set up a business?
Once it’s all set up, how long will my money last if I don’t sell enough?
Looking good so far? Then you might like to take your analysis and planning a bit further. There are some excellent, free resources available at https://www.gov.uk/write-business-plan, which include guides, templates and examples to help you get your business plan together. If you need some help you can book a 1:1 with me.