It is no secret that the first five years of a business start-up are the hardest, and the pass rate for this anniversary is below 50%.
Start-up growth has been at a record low for ten years now. The global economic depression has undoubtedly been a huge contributing factor, but like a good old vicious circle entrepreneurs are needed to boost the flailing economies.
Entrepreneurs need support and incentives to step out and be successful in the business world. Here are some top tips to help you through the first five years and beyond:
Firstly, suss out the market potential for your proposed business as well as the competition. This will give you an idea of whether your business will have the space and demand to take off or whether there’s a reason no one else is doing it.
A good business plan can take you a long way, particularly with regard to achieving financial support. It doesn’t need to be long, but should demonstrate that you’ve done your research.
A legitimate partnership agreement will be needed if you’re starting out with a partner. This is in the interests of both, or all, of you. It will protect your assets and smooth over any professional disagreements that will undoubtedly crop up.
Key details to work out before you go any further are:
- Work out a company name – unique and professional, classic, or catchy
- Choose the relevant corporate structure – consider future growth and taxation
- Create a suitable web presence – in this digital age a website/social media is a must have
Analysing your business model in conjunction with cash flow and breakeven will help you detail a financial forecast. This will ensure you have enough money for all the start-up costs. Also look into the types of funding that may be available to you.
Starting your business in an “incubator” is becoming increasingly popular. This gives you access to similar entrepreneurs and experts in your market. Their presence means you won’t have to face the scary corporate world alone, and their advice might save you from costly mistakes. They can also form the basis of your connections network – an invaluable aspect of running any business.
Surpassing the five year mark is not impossible. Your business will be all the stronger for fighting through those hard first years and you will reap the rewards for everything you have worked for.
Please don’t hesitate to call us on +44 (0) 20 8421 7470 or contact us via the website for help and advice.