With the correct planning, businesses have a much better chance of succeeding. I am a huge advocate for planning, and it proves with planning your business succeeds. As the saying goes, “Fail to plan, plan to fail”.

Here are 3 tips should you implement from day one, which may improve your chances of business success:

Number 1 – You need money to start a business

First and foremost, you need money to start a business. If someone tells you else wise, you are in for a big surprise and a VERY challenging journey ahead.

Trademarking alone is approximately $500 in the US and UK approximately £400, and this doesn’t include fees for IP advisor fees. Then there are copyright fees involved fee possibly. You miss investing in intellectual property for your business from the onset, it may run your business with infringement fines before you have even started.

Then there is the website, the domain, the email address, and the business insurance. There are legal contracts which need to be in place when dealing with suppliers and such. This costs money.

Then there is the business plan, the marketing strategy, and all other strategies. And a backup fund for global downfall issues like we experienced with COVID to ensure a business sails through challenging times and still thrived.

Thinking you are able to start a business with no money is a recipe for a disaster and financially collapsed business long term along with an immensely stressful journey.

Did you know that a minority of businesses collapse by year three because of a lack of structure in a business and have run out of funds? Here are some more interesting statistics:

• 82% – Poor cash flow management skills/poor understanding of cash flow
• 79% – Starting out with very little money
• 78% – Lack of well-developed business plan, including insufficient research on the business before starting it
• 77% – Not pricing properly or failure to include all necessary items when setting prices
• 73% – Being overly optimistic about achievable sales, the money required, and what needs to be done to be successful
• 70% – Not recognizing or ignoring what they do not do well and not seeking help from those who do

Someone who thinks they are able to set up a business for no money has a short-term mentality when comes to starting a business and is far from understanding the importance of implementing crucial assets from day one to imbed value, worth, and profitability to a business model long term.

Trying to stretch your finances at the beginning may mean your business never gets off the ground, and you still have a lot of cash to repay.

If you are realistic at the beginning, plan to start with enough money, which gets you to the point where your business is up and running and cash, is actually flowing in.

Number 2 – Business Plan

I am unable to emphasize the importance of business planning. A solid and realistic business plan is the basic foundation of any successful business. The plan outlines achievable goals for the business, how the business meets those goals, and possible challenges and solutions. The plan figures out the costs and inputs needed for the business, and it outlines strategies and timelines which should be implemented and met.

Once the plan is complete, you must follow it. If you start doubling your spending or changing your strategies, you are asking for failure. Unless the business plan is overwhelmingly inaccurate, stick with it. If it is inaccurate, it is best to find out what is wrong with it, fix it, and follow a new plan rather than change how you do business based on quick observations. The more mistakes you make, the more expensive your business becomes and the greater the chance of failure.

Number 3 – Consistency and Strategies

Once the business plan is done, all other strategies need to be in place such as marketing strategy, brand strategy, social media strategies, etc.

Furthermore, you need to execute all which is in the strategies now! Never become complacent. Monitor the market and know when you may need to alter your business plan. Being on top of key trends allows the business to adjust its strategy, so the business is able to continue to become successful.

Though the rate of business failure within three years is over 80%, it never means your business has to fail. Through good planning from the onset, and flexibility, many of the pitfalls of a new business may be completely avoided, and your business may flourish into a long-term successful and profitable business.

If you have any questions on business plans and setting up a business, feel free to contact us