BLOG: Give your start up a chance to succeed!

You have great ideas. Time and time again, you see something you thought about years ago become a market success, today. The difference? They put their time and effort to making it come true. You did not. Time to change that. Too difficult you say? Not the right time?
As the saying goes, the best time to plant a tree is 20 years ago. The next best time is now. As for difficult, nothing worth doing is ever easy. Here are a few things you can do to maximise your chance of success:

The Business Plan

Yes, it’s a cliché. But it is also truth that if you fail to plan, you plan to fail. The Business Plan does not have to be a formal document (unless you plan to get investors). Many great business plans were done up on napkins! Business plans help to crystallise your thought process and just as importantly, offers a great guide to keep you on track when things start to get a little crazy. Remember, your business plan is a living document – you need to keep reviewing and updating it!

Choose the right entity

There are many business structures available; each has its strengths and weaknesses - sole proprietor, partnership, company and trust. Picking the right choice is dependent on a number of factors, such as your current circumstances, business plan and business model. Getting it right from the start is imperative as it will reduce hassles down the track, maximise tax mitigation strategies, and preserve and protect capital.

Budgeting

A budget is very much like your business plan; where one maps your vision to direct your actions, the other maps your funds to fuel your actions. The budget serves to point out how much money you will need and when you will need it by. Used properly, it is a powerful tool that can prevent overreach or spur further growth. It is critical therefore, that it is not seeded with figures plucked from the sky! Make sure you do adequate research as you prepare your budget.

Cash flow

Banks are funny. They hound you to extend credit when you have no need for it and block you with red tape when you do need it. Moral of the story then, is to get as much credit as you can when you can. Why you might ask? Because no matter how successful your business is, when your cash dries up, it is game over.

Personnel

Outsourcing is a good way of getting much needed expertise quickly and with relative ease. When selecting a business partner, consider the following: how scalable are their services – will they still be suitable for me in the next 3 years? How much is my business worth to them – are they willing to go the extra mile? What are the contractual terms – if things go sour, how fast can I exit this arrangement?
This article was published at Joomag's Small Business Unravelled, Dec 13 issue.
Disclaimer: The content of this article is intended for general information purposes only. You should always seek professional advice before acting. No responsibility is taken for any loss as a result of any action taken or refrained from in consequence of its contents.


Author: 
Jason
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