Q: What would you say is the most important tip for starting a business?
Oct 26 2006
Email a friend
Answered by: Adam Wayland Ask a question
I don’t think you can say one thing. Here are some top tips from Duncan Cheatle, founder of the advisory body Prelude2Business:
Do it for the passion not the money: It’s a bad idea to start something with an exit and a fortune in mind, you'll probably fail. This was common during the dot-com era where people came up with ludicrous business ideas, delivered by inexperienced teams.
Stick to what you know: Philip Green, the retail entrepreneur, gave this advice. He only invests in retail businesses, because that's what he understands. If you go into something you know nothing about, you will make things much harder for yourself.
Don't give up too early: Successful businesses are usually very different from those described in their original plan. Try something and if it doesn’t work, try to do it differently. Persistence is a vital quality of any entrepreneur.
Find yourself a mentor: Having a mentor can be a huge support and can help you see the wood from the trees. First-time entrepreneurs often fail because they don't have a more experienced person from whom they can learn and turn to for advice.
Cash management: Cash is king, so manage it well. Ensure you have appropriate forecasts and monitor against expectations. You don’t necessarily need a full-time finance director but do not think a bookkeeper will manage your cash for you.
Build sales before anything else: Don’t spend too much time designing a nice website over getting out there and closing a sale. You need clients to build sales from - even if you initially offer them a reduced rate, a free product or service.
Don't rush: Winning clients takes time. Nothing can replace experience and you don't want to alienate potential clients by getting it wrong.
Be wary of bad advice: When cash is tight, you don't want to end up paying for bad advice. Before you pay for any advice, ask for references from their previous clients.
A longer version of this appeared on the BBC website, click here to read it.
Comments [4]