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Setting up own business - what makes it a success?

11 replies

Springgardening · 24/03/2021 14:03

I often daydream about a business idea - probably more like a social enterprise. I am very realistic, I knows it's just a daydream that I enjoy thinking about. I know how difficult it is to start a business, I know how little experience I have, how businesses quickly fold etc. In short, I am under no illusion that is easy or that my idea is viable.

However chatting to DC about dreams and ideal jobs and got me thinking about how people turn their dreams into reality. Do they have a "head for business" rather than a brilliant idea. Do they have money behind them etc? Are they risk takers?

OP posts:
idontlikealdi · 24/03/2021 14:05

You need to be savvy, have a great idea and money or backing behind you.

Setting up your own business making crafts for example will be more of a hobby, it's never going to bring in much cash. If you want to set up a lucrative business you need more behind you.

Springgardening · 24/03/2021 14:25

I don't have a unique idea (nor money) but it might be enjoyable to investigate anyway. I've been reading a lot about successful social enterprises.

It was funny how puzzled my children looked at the idea of not even trying.
So lovely to be young and feel anything is possible!

OP posts:
BarbaraofSeville · 24/03/2021 14:40

A lot of it will be down to luck and very hard work/long hours, plus being able to afford to work without earning money and possibly racking up debt, for a while, months or even a year or two. Plus possibly not losing everything (house etc) before the business becomes a success.

maxelly · 24/03/2021 14:52

I don't think you necessarily need a brilliantly unique 'idea' as such, plenty of successful small businesses are not original, e.g. hairdressers/restaurants/holiday accommodation have been around for eons and you can still make money from them, but I do think you need to either offer something different/find a gap in the market AND/OR do whatever it is you do better/faster/cheaper/easier than your customers can find it elsewhere... simply starting with what you'd like to do rather than what you can offer is where some people fall down I think.

I don't think you necessarily need to be a brilliant business person right off the bat, if the business is based on some kind of skill or ability you have then that's a great starting point and you can learn the business skills necessary or buy them in (not many business owners fully understand all the ins and outs of tax, pensions and payroll for instance but a good accountant, payroll service etc can cover this for you, you just need to budget for it in your business plan).

If you want to make your business idea a reality I think I would start by drafting an initial business plan (not the 'nice stuff' about what the business will be called, what the logo will be etc, but the hard line of what your minimum costs will be, realistic turnover years 1/2/3 and onwards, market research, who your target market is and why they will want your product/service over your competitors, pricing structure etc) - then maybe try and find a good business advisor that will take a critical look at whether it's viable or not (you may have to pay for this advice but worth taking it upfront rather than jumping in with an investment you may stand to lose).

You don't say what kind of business it is but a lot of the successful business people I know started out running their business on a small scale and in their spare time to prove it worked and work out flaws/problems in a less risky way, before scaling up to making it their full-time employment - obviously if it's something like a restaurant or cafe this is harder to do but if it's a service you offer or something you'd sell you could maybe try working on it online and in evenings/weekends first - then if it works maybe aim to be able to go part-time in current employment in a year or 2, then eventually give up main job altogether? Also, again dependent on what the idea is, but it's a really good idea to get experience in the industry/area you'd want to work in first before going straight to being the boss, most people I know that have run successful businesses already had a lot of experience, not necessarily in running a business but e.g. have been employed as a manager in hospitality industry if they run a restaurant, are a builder/tradesman if it's letting out or selling property etc, this gives them the credibility they need with customers, investors, staff etc as well as confidence in their own decisions...

Good luck!

Darklane · 24/03/2021 14:55

That’s true about being prepared to work very long hours & investing not just all your time but most of your money to get it off the ground.
Personally, I don’t think you’re on the right track if you have to try to think up a unique idea, far more likely to succeed if it’s something you already have a passion for so are far more likely to put in the huge effort & commitment needed. It doesn’t have to be unique, just something that you feel isn’t well catered for in your area is fine.
I began work as a teacher after uni but was never really cut out for it or particularly interested.
I left after eight years & began my own business which I ran successfully till I retired four years ago, well say retired but really just downsized & now do very similar as a hobby without the same ties.

maxelly · 24/03/2021 15:03

And yes, I do think a critically underrated factor in making a successful business is luck, either luck in your starting position (already have money of your own you can invest or access to money from relatives or simply in a comfortable enough position you can afford no salary for the first few years) or luck as you go along (hitting the market at exactly the right time, landing a big customer early or lots of exposure for your product), or both. I'm sure lots of business fail not for want of hard work or skill on the part of the owner but just bad luck.

So to an extent I think all business people have to be prepared to take a risk but I do think hard work and good judgement (again not necessarily business acumen although this helps, but being really skilled at what you do or giving really great customer service) play a huge part too, I guess I think of it as your effort, skills and knowledge and a really well worked through, realistic business plan gets you to the table in the first place, there's then a certain amount of luck to how much it pays off but it's reasonable to expect at least some reward - some people may get more or less of a return than they expected but only the really unlucky lose it all. Whereas if you don't expect to work hard at it or don't bring much in terms of your own abilities or financial input then you'd have to get insanely lucky to 'win', does that make sense?

Springgardening · 24/03/2021 17:49

I couldn't manage without any income at all. Might be something to plan for when children are older. I have some relevant experience without being an expert and would be relying on others expertise. That might be something I could start to tackle.
Lots to think about.

OP posts:
ClaraSK9 · 04/06/2022 05:42

You have to do what you can to take you towards your dream business every day. Testing each day. Starting an online business is the way to start and you can do this virtually for free.

user1471505356 · 04/06/2022 08:00

Look at a franchise business, you provide labour and money, they provide expertise.

ClaraSK9 · 04/06/2022 08:55

Starting a franchise business is expensive. You need at least £ 35k.

Thesefeetaremadeforwalking · 04/06/2022 09:13

You need a Business Plan, OP ; www.gov.uk/write-business-plan

Your bank should be able to help you with this.

Good Luck x

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