Starting a business can be daunting. It is important that you go into starting up a business with your eyes open. Chances are, what you are doing will not just affect you. Your family may have to make changes to their lives to allow you to start up your business. If you are investing your own money into the company, this may affect your family too. Once you bring in outside investment, whether that comes from a professional investment company or an individual, you are also responsible for their financial success. So, as you can imagine, the pressure to succeed is pretty high.
The concerns all put aside, success is obviously achievable. Businesses start up every day, and many go on to do very great things. There is no reason why you cannot be a success in your business. But you will need to ensure you have a few simple qualities.
You will need to have the drive and determination to succeed. This will mean working hard against all odds to deliver success on your goals.
You’ll need to be a great planner. This means working out all of the details and being very thorough when it comes to finances.
Inspiration accounts for quite a lot. Having a winning idea will help you a lot of the way, but you will need the additional skills that go hand-in-hand with this to realize your potential.
Communication is everything. You must be able to sell your ideas. Whether you are talking to investors, employees, or customers. People need to understand everything you are saying to them, and they need to believe in you too.
If you have these skills, then you should start planning your business.
Be As In Depth As Possible With Your Planning
Starting up a business will require you to have a well thought out and in-depth business plan. There are many different factors that go into creating a successful business plan, and you need to make sure you do your research before you create this.
First of all, you need to set out what you hope to achieve. What is your business, who is it aimed at, and where will it run from? There is no point going into business with a vague plan. Research the market that you are going into. Work out what success looks like in that industry and set yourself some goals.
Having periodic goals that are stepped will mean that you will be able to continually review your performance. Where do you want to be after your first month in business? Where will you be at the end of the first quarter? And then again in six months, and after a year.
Breaking down your business plan and setting specific incremental goals will mean that your targets are time-bound and more are likely to be attainable.
Your business plan should also include consideration for the people who will be involved in making your company a success story. Who do you need to hire? What qualities and experiences should they have?
Then you can set to work on the financial planning
Working Out Your Budget
Getting your budget right will make the difference between success and failure. There are no two ways about this. You need to create a full and accurate budget for your business.
Your budget needs to include everything that you may need to get your business off the ground. For example, if you are starting up a manufacturing business there will need to be all of the costs involved in renting the premises. There may be business rates attached to this, along with the cost of utilities. Then you will need to get your machinery, and you may need to pay for a logistics firm to bring it to you, and industrial electricians to help install it.
You’ll need employees to work the machinery. Recruitment and training cost money, and you’ll need to also think about any insurance that you will need to get in place to protect your staff as well as providing them with safety equipment. Payroll and HR costs need to be factored, as will all of the support costs involved in this. Then you will need an accounts division, a sales department, and potentially lots more besides.
Every single cost should be accounted for, from the most expensive elements such as rent and equipment, right down to the cost of envelopes and stamps.
Projects do overrun in cost and when they do, it can spell disaster for some businesses. If there is no money in the budget to fall back on, your project may be dead in the ground from the start.
Plan a contingency into the budget to make sure that you are not left without any money to back you up.
Great Planning Leads To Investor Confidence
Investors are not just putting their money into your company, they are in fact investing in you as a business leader. They need to know that you have the ability to drive the company in the direction needed to achieve success.
A professional investor will know where there are gaps in your business plan. They may not want to invest in you or your business if they spot some glaring holes though. It will not fill them with confidence if they realize that you have missed out some important aspects of the business.