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Hi All,
I have been thinking about starting my own business now for some time but have not really had the balls to make the jump. So I'm looking for the mighty Hexus community to give me any of their past successes or Failures in setting up businesses and any key things you did to help you succeed or caused you to fail.
Oh and if I end up with a Donal Trump like business I'll by you all drink:mrgreen:
Research your market thoroughly (understand your market potential and the slice you are realistically able secure, Make sure your product/service offering is absolutely spot-on and your pricing is realistic before going to market.
And most importantly, Grow a set of B&(($ and take that plunge, cos you will never know how it will turn out until you do it.
Nothing ventured nothing gained. :-)
Make sure you have a backup plan incase it all goes Pete Tong.
Get an accountant, you've no chance without one.
Agree totally, get recommendation's cause a good one is worth his weight in goldQuote:
Originally Posted by JPreston
I would dipense some valuable advice, but i just don't have any. However, in my local book shop the other day (my union bookshop) there are loads of books on start-up. I had a quick flick through and theyy seem pretty useful. All the tips and pitfalls that you should look out for. I would recommend reading one (if not more) of these books, i cant remember what they are called, but one of them was by the Financial Times.
EDIT: Also, if you're goin on Dragon's Den, KNOW YOUR NUMBERS!
Get a good bank. Admittedly maybe a little biased from my point of view, but if you can get your foot in the door with one of the smaller 'relationship' banks, you stand a much better chance of success, mainly because they wont unpay a 1k cheque because youre 1£ short.
A good management acocuntant is important too, even if theyre only in there once a quarter, get one to help you put together cashflow forecasts etc when youre shopping round for funding (since i assume you wont want to raise it all from your house)
Mind if i ask what sector youre in?
Watch 'Dragons Den' !!!
First things first as Livinit said, KNOW YOUR SECTOR!!
I wasn't shouting but it's REALLY important that you have a clear understanding of the area you want to enter. Here are a few of the hundreds of questions you should be able to answer before you start:
- Who are the major players in your area and how can you do it better/different than them?
- Do people actually want what you're offering? I'm not saying they don't but just be sure before you start.
- Have you got a plan to get customers in? Don't rely solely on the internet because:
a) It takes time/money to get to the top
b) You can disappear at a moments notice
If you really think you can make a go of it, then just get your resignation letter written(providing you're in work) and get out there. It's scary, really really hard work but ultimately I don't think I'd have it any other way.
I was never built to sit in a shirt and tie working for someone else, I'd much prefer to be sat at home listening to my music doing my work on my own terms.
An awful lot depends on what type of business you're planning on starting. For some, there's no alternative but to jump in with both feet. With others, you can start slowly and part-time, keeping your current job while you try to build the business .... and get a feel for whether it's viable or not.
Rule number 1 - do your research.
Do some reading on financial planning, cash flow forecasts, etc. Do some research on your proposed business .... who is the competition, what's the market like (size, growing or contracting), who are your customers (businesses or consumers, specialist or mass market), what equipment (if any) do you need, can it be bought second-hand, and so on.
Also, check out what you MUST do, such as telling the Inland Revenue (or HMRC, as they now are) that you're going into business. Check out whether you need to register for VAT, and even if you don't need to, check whether it might be a good idea anyway, Look at whether to be sole trader/partnership or a limited company (or LLP) including the tax implications of that choice.
Talk to banks and, when you're close to going ahead, talk to an accountant. If you aren't sure what you're doing (and you aren't, or you wouldn't be asking here) then a bit of timely advice could save you a lot of money in the long run. Get advice on what accounting records you need to keep, and perhaps get yourself a computerised accounting package (if the scale of your business justifies it). Doing some accounting yourself will save you some money, but be aware .... time you spend doing accounts is time you can't spend building your business, so again depending on the nature of the business, doing too much yourself might be false economy.
Be aware that running your own business gives you a degree of control over your own life that's impossible to achieve working for someone else BUT it also requires a certain mindset. You need to have the drive to do it, the stamina and resilience to keep at it when things are hard or go wrong (and they will, at some point) and the stubborness and determination to pick yourself up and start again if the first attempt goes pear-shaped. So be aware, the early days (year or two) are going to bve a learning experience. Brace yourself for that.
But if you can do it, then the rewards (both financial and personal) can be very great indeed.
I started my own business many years ago..just sold it, and spend my time[mostly]flying out to Australia..would like to stop there but..?.
Tips..try to make it with a business that doesnt need people..most problems revolve around people..if you need them then pay the best rates and get the best.
Red tape..as soon as you go self employed you get more mail from HM gov than you ever did see..bin as much as you can.Get a good accountant but make sure he knows he works for you...good luck
:Oops:
I started my own computer repair business last year.
My advice to you is always try to be honest with the customer. There are obvious times when telling the truth will more likely as not get your head stoved in. However, thankfully, these problems are few and far between.
Oh yeah and leaflets are a waste of time. Either get business by word of mouth or by strategic alliance with another company. Always do your best business with the people with the biggest mouths. ;)
Hope this helps.
Don't waste MONEY!
If you get a (small business) loan or have cash to invest, ensure that every penny spent is justified in establishing your business. Don't kid yourself.
I've seen friends blow wads of cash on jollies/luxuries simply cos it wasn't their money and they thought it was good to do xyz without really thinking it through. It's easy in the early days to get carried away with being your own CEO! - in the end they paid for it.
Be FOCUSED.
I've seen a few people be lazy and not really put their absolute heart and soul into it even though they have got a good product to sell. They thought they'd "own" the competition and that money would flow in when everyone heard of them. It didn't. Why? Cos they didn't work hard enough. They didn't establish any repeat business and didn't look for it.
Know your market.
As has been discussed by others.
Accountant.
Important as these people know what they are on about. A sound business plan is a essential.
It is very hard but from small acorns oak trees grow.
My dad had a business doing timing for mountain bike events for about 10 years but only really wanted it for a hobby and to pay a few bills/car. Timelaps is reconised as the best lap scoring/timing company in UK mountain biking today.
My brother and friend have bought it and have invested some cash and are looking to expand it but they have a solid market that knows how good they are so they can do that.
How good are you? Well know one knows yet until you try.
I had a very good friend of mine fail at an early age in business and he owed a small amount of money, however he never regretted his decision to do it. With 20/20 hindsight he would have done some things differently but it taught him alot at an early age. He doesn't own a business now and he owns his own house so it wasn't disasterous.
Best of luck.
In addition to my previous post, I'd say have a go.
As long as you don't go silly on the money side of things what's the worst that can happen?
good luck if you go ahead.
consult your local enterprise agency there may be grants or start up loans available.
robbo.
take a look here:
http://www.businesslink.gov.uk
Thats a good starting place for any prospective business - and theres a really useful information pack about to be launched that should help a fair bit :) There are also some phone numbers and email addresses on there if you want some personal advice.
I don't know your circumstances, but if you are at uni or have recently graduated then speak to your university about grants for starting businesses - or even if you are not a student and never actually went, its still worth talking to your local university as they might still be able to help you out.
There are plenty of other schemes out there for rasing money too, such as another government one where they will give you up to 15k for a tiny % of your business (about 4-5% usually); for this one, speak to your local council as each council in the country gets a budget for investing in local businesses. Keep in mind however that part of this deal usually means you have to stay and trade in the local area, so this might not be the best option.
hope that helps :)
Agreed wholeheartedly, however, speak to an accountant before you go near a bank, if someone speaks to me re a loan without having projections, any figures or a proper business structure, it could be the best business in the world, but it creates a terrible impression.Quote:
Originally Posted by Saracen
And i cant stress enough the need for an ongoing relationship with a management accountant, even if you only get figures wuarterly, it will help massively in keeping track of where money is spent, and will reassure a bank no end.
If you want a loan from a bank, then I completely agree. You need to make the case. But not all businesses want (let alone need) a loan from a bank, and for a fledgling business, I'd advise avoiding it if at all possible. After nearly 25 years running my own business, I've never needed one. In fact, I've had to fight my bank off with a stick as they seem determined to lend me money whether I want it or not. And I don't. :DQuote:
Originally Posted by herulach