When it comes to business, nothing is guaranteed. Sometimes incredible companies and ideas fail unexpectedly, and other times, completely inexperienced entrepreneurs can build up multimillion dollar companies from their own bedrooms. When even massive companies like Blockbuster can fail, it shows just how delicate things can be. However, with that being said, it still makes business sense to be as prepared as you can possibly be. Going into things with a plan and in an organized way will boost your chances of success, even if success can never be guaranteed. The last thing you want is to have genuine business ideas that could have done well, but failed due to lack of care or knowledge. Here are some of the ways you can bump up your chances of doing well.
Gaining a qualification in a business-related subject such as these on http://www.businessdictionary.com/topics/ is a good start to your journey of becoming a company owner. This will provide you with plenty of background knowledge and information on the subject which can be invaluable. You could either go to university and study full time, or if you’re already working full time and want to change careers then study part time from home. There are lots of online colleges and universities these days which allow you to study in a flexible way, which is useful if you’re unable to leave work for years. That way, you can study around your current job, and leave once you’ve gained your qualification and are ready to move on. You will work your way through several different modules which explain how different areas of business are run and give you plenty of knowledge that will be useful when you’re setting up your own venture.
Before establishing your own company, it can be useful to gain experience working within a similar business that you want to set up. This helps you to get a really good understanding of what it takes to run this kind of operation, you can learn from anything that goes wrong and remember the things that are right for your own venture. You get to learn and understand what it is to run a successful company and how things are done, instead of going into things completely blind. If you can’t find paid work shadowing a business like the one you want to set up, then you could always do some voluntary work. If you’re at university full time, then something like this around your study would work perfectly. Putting in this kind of effort now can really pay off later down the line. You can learn what the daily operations are, how to deal with staff, how to order stock, how to work various software, how to deal with customers and clients and so much more. From a moral point of view, you probably won’t want to gain this experience from a business who will be a direct competitor later on, so choose wisely. For example, if you plan on selling sports clothes you could work with a company that sells baby clothes. The business idea is the same, but you won’t be gaining experience and learning from someone to later take their customers!
Starting a business is expensive. You need money to set up a website and have an app created. You need to rent premises, you need to buy equipment. Then there’s money for things like hiring staff and insurances. That’s before you’ve even bought the stock or materials you’ll be selling. Many businesses have to utilize loans in the beginning, which is doable but it does mean you’ll be starting out in the red. It could take some time to start turning a profit meaning you’re falling further behind as you’re paying interest on the loans. One of the best things you can do if you know you’re setting up a business in the future is to save. Even if you do still have to use loans as well, you won’t have to borrow as much money so the interest will be lower and it will be much more manageable. Having a buffer or emergency fund is also essential, this will allow you to keep on trading even if you run into trouble a little later on. Some extra money can allow you to keep going, and hopefully get back on track, instead of falling at the first hurdle.
As well as saving money for your initial setup, and keeping some aside for emergencies- you need to make sure that the day to day runnings of your business’s finances are being handled correctly. You need to be careful not to overspend, but also not scrimp on things that are important. Start trying to save money on things like your website or marketing for example, and you could end up jeopardizing your entire operation. Know where to spend and where to save. Plan ahead of time and know exactly where each penny your company has needs to be spent. You could speak to a financial advisor who will be experienced in running these kinds of ventures and be able to keep you on track.
In business, networking is everything. Having a good network of other entrepreneurs and clients who are likely to be interested in your venture can help you to grow, even before establishing your business, network. Attend events such as those hosted by www.eventbrite.co.uk, take social media and contact information and chat about the business you plan on setting up. That way, later down the line when everything is up and running, you have contacts who are likely to be interested in your services- or know others who are. Building up good interpersonal relationships with other business owners can also help massively as a new company owner. Ask for help when you need it, if you have others who have already set up and been successful, then often they’ll be more than happy to give you advice.
Use the right software
Running a business in the modern world means you absolutely have to be up to date with technology. If you want to keep up with your competition and prevent wasting time and money, then you need to find software that is right for you. Business software can be used in just about any area of your company from accounting to legal to HR and more- even tasks such as SEO campaigns can be run with software such as websiterocket.com. These kinds of programs make tasks much quicker and easier, they save time and therefore money. Why pay an employee to do a day’s work manually when a computer can do it in seconds? You could choose a program that’s already available or have a software designer create something bespoke for your business. Either way, the right technology and software are key to your success as a company owner and something to plan for.
Finally, as a business owner, it’s easy to feel the weight of the world on your shoulders. But you don’t have to do everything, there are lots of areas of your business that you can outsource to third party, professional companies. It’s often worth doing this in areas where your workload fluctuates, that way you’re not hiring and paying an employee full time when there’s not full time work available. As the boss, you will be responsible for overseeing the work from the different departments of your company, for areas you’re not confident in, you could outsource. By doing so, you know the work is always going to be done to the highest standard. You don’t need to personally check or oversee things which can free up time for you to be getting on with other tasks. In some cases, you might have to outsource out of necessity, but could go on to have the process in-house later.
Take manufacturing for example, in the beginning chances are you will need to have your products manufactured by a company who already has everything in place. But later down the line when you’re turning a profit, you could look into creating your own plant. While there will be significant costs upfront to do this, overall, you’ll save yourself money since you won’t have to pay another company to work for you.
There are plenty of stories of people who set up businesses with no experience and go on to do well. However, there are even more cases of them failing- and even established businesses failing and so it always pays to be prepared. Spend time, it could even be years, planning and researching and getting ready to open your doors. That way you prevent yourself from making a silly mistake and failing over something that could have been avoided.
What have you personally done ahead of time to make sure your business has the greatest chance of succeeding?