Start Up’s Same Old Story
Most owners of start ups have never run their own business before and many fail to invest in themselves and learn the skills they will need and prepare to do business properly.
I don’t know why so many people assume they will be able to run a successful business having never done so before, but a huge number do and this reflects in the high level of business failures. In fact a staggering two thirds of start ups will fail within their first year.
The top reasons quoted by government being: 1) Lack of Finance & Cashflow, 2) Poor Marketing 3) Lack of Focus & Clear Direction & Objectives, 4) Not Reserving for Tax / VAT Bills 5) Over Reliance on Few Customers 6) Poor Business and Staff Management. It seems to me this list is pretty much the same as most business course curriculum’s – I wonder why?
Personally I think too many businesses are started by people who simply aren’t skilled enough to run them, and or who haven’t done the right market research to check whether there really is a substantial, sustainable and accessible market opportunity for them. People often make the mistake of seeing what someone else is doing successfully and then assuming the same opportunity is open to them. Of course it isn’t. New businesses need to find their own opportunity and their own market position.
Starting a new business is venturing on a new and important journey, one worth preparing properly for. I strongly advise start ups to take professional advice wherever they can. The GrowthAccelerator programme is open to a limited number of high growth potential start ups and worth looking at. Most Chambers of Commerce will also run schemes as do many Universities and local authorities. Don’t go it alone and unprepared.