When it comes to business, nothing is guaranteed. Some of the world’s largest companies were started in basements, garden sheds and bedrooms- Apple, Google and Disney to name a few. Others have reached huge successes, and then have gone on to fail later down the line- take Blockbuster for example. It’s impossible to know how things will pan out, and with any business there will be risks to gain your reward. However there are things you can do to minimise this, and greatly improve your chances of success. Here are a few ideas.
Save Instead of Borrow
Most businesses will need to lend money to some extent. Getting started doesn’t come cheap and there are some significant costs to cover when it comes to establishing a company. However instead of relying solely on borrowing and business loans, one of the best things you can do is spend some time saving before launching your business. Cover as much of the costs as you can yourself, the less you borrow the less interest you will pay- and it can mean there’s not as much pressure on you in the beginning. It can take time for companies to get established and start earning money, and when you know you have debts to pay (and all kinds of interest to cover before you start reaping any reward) it can put you in a vulnerable position. A properly researched and well thought out business can take many months, even a year or more in some cases so this is time you could use to get saving and invest into your venture.
Just about anyone can start a business these days, a couple of forms online with the few clicks of a button and you’re technically a registered company. However creating a business that actually works and turns a profit is far more tricky, there’s so many elements to get right and lots to consider and unless you know what you’re doing there’s much trial and error involved. While some companies have done this and made a success of it, a lot of this comes down to luck. There have been plenty of others (some of which will have had the potential to be great) that failed because they didn’t really know what they were doing. If you’re serious about business, getting qualified can massively reduce your risks. You could study something like an online accredited mba part time around your current job, then when you’re qualified you could quit your job and set up your business to run it full time.
When you have a great business idea that you’re really excited about, it’s tempting to want to throw everything into it. But if you do this and it doesn’t do as well as you’d hoped, you have far more to lose. One thing you could do is to start things off on a smaller scale. Perhaps run it from home, or go with a very small and cheap premises. Hire business equipment instead of buying it, and looking for other ways to keep costs low. That way you can see if there’s genuine interest in your business and you know it’s going to do well. That way you can feel good about throwing all of the money you have at it knowing there’s a high chance it will succeed.