Survival Tips
70% of new business fail with the first 2 years, so to avoid such fate you should follow these top 10 basic tips for business survival.
1. A business idea is only any good if there are customers who want to buy your product or service now. Its obvious, but without this you do not have a viable business opportunity.
2. Only proceed if you are convinced of the financial viability of your product/service and are prepared to totally commit yourself to making it a success.
3. Only enter a market where you or your team have good experience and knowledge of the key market issues e.g how to obtain customers, pricing strategies, typical costs.
4. Always watch the cash, always have a contingency fund, always plan ahead, and know how you could raise additional funds quickly if required.
5. Never forget your customers. Continually check to ensure your product/service meets, if not surpasses customer requirements and is differentiated from the competition. Ask yourself everyday; who are the customers? What do they want? Why would they buy from me? Never be over-reliant on a single customer or supplier.
6. Consider using a mentor, or appointing one or more non-executive directors, who can provide impartial advice together with industry knowledge and contacts.
7. Plan for delays e.g suppliers, customer orders, recruiting staff, obtaining a loan etc, by incorporating a contingency.
8. If you plan to grow rapidly get the right team together as soon as appropriate. Note also that the top team will change with time, so do not assume any senior position is necessarily a job for life, especially if you are using other peoples money.
9. Seek professional advice (i.e financial, legal) whenever necessary and appropriate.
10. When preparing your business plan recognise that entrepreneurs tend to be overly optimistic, so ensure your figures are realistic and incorporate a sensitivity analysis.
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