Half of all small businesses fail within the first 3 years of setting up a business. Many more don’t make a profit when they do trade for over 5 years and 90% of small businesses in the UK make less than £40,000 per year profit.
These figures are extremely scary but they can be avoided with some simple research and basic planning. Starting a small business requires more than just working on the financials for a campaign. Instead you need to plan EVERYTHING. Do not overdo any expectations and always stay proactive.
There are 2 aspects to business “work” and time spent in general. These are reactive and proactive. If a business is very reactive, they are doing admin, packing orders, answering emails, providing the service and doing everything that is expected for the business. A proactive task or activity is something that has not already been done that might help with the acquisition of clients and generating more profit.
For example a digital marketing strategy is a proactive task, this can be anything from making a infographic and promoting it online, all the way to cold calling, which is a proactive task. Answering emails and receiving calls is a reactive task. If your business is more than 90% reactive, you are highly unlikely to grow and chances are you are stuck in the old business model, where you are simply doing enough to “get by”.
Important Research Sources:
1.) An unusual one but the article by ghost marketing on climb online which talks about the errors the winner of the apprentice made, and he still one! This is a rant take on marketing and what he did wrong from an online point of view. Even if you own a brick and mortar business, read this article!
2.) Course research – Research the number of courses available in this niche, for example Lincoln, city.ac.uk and many many more, get your research done here, even take a course if you are really serious about learning the ropes.
3.) HMRC and .gov – The government (believe it or not) is actually trying to help startup businesses succeed, Cameron and alike are introducing new laws that make it easier for people to set up businesses. More on this here.
4.) Marketing – This is the most proactive task of all, that 65% of small start ups fail with. You can no longer have a business and simply “hope” people will walk through the door and buy what you are offering. Most people don’t even know you exist. Help them out by marketing you business. Good link on marketing 101 by a yank.
5.) Local – Check your local grants and subsidies for start up businesses, mine is Wales, and there are many offers and subsidies that help businesses in Wales and the UK. Find yours by Googling and read up on the key information you need to know.
I hope you enjoyed reading this article.