People usually set up a business because they have a passion for what they are doing and believe there is a demand for it — or they choose a business that they believe can make them a lot of money. Inevitably they also want to have a lot more time freedom by having their own business.
Don’t be fooled though, starting a business can be hard work and takes a lot of time and commitment. Often initially you find that you are working many more hours that you would ever work for an employer and for far less return. However, if you structure your business correctly, the hard work, time and effort should pay you suitable rewards.
To get your business, whether that is a property business or any other business, there are a number of key things that you should do to ensure you get off on the right foot. Below is a list of common mistakes.
1. Not having a clear plan
We should always start with a business plan. Now often people think this is only required if you need funding. However even if you do not have any funding you need to have a plan in place to know the path you are going to go and check that you have done all the things you need to in preparing for your business and moving it forward. A good business plan will evaluate the market for your product or service and identify competition. You will be able to specify what your goals are and what your money you need to get started, what you can expect in return and what your cash flow will be like. Your business plan should also include your marketing strategy, your due diligence process and your exit strategy from your business.
2. Being impatient
Business take time to build, but the more effort you can put in the quicker you will be able to build them. Many people over estimate what they will be able to achieve in the first year or two and then underestimate what they can achieve the following 5 years.
3. Lack of personal financial planning
One of the biggest things that cause businesses to fail is the lack of cash flow. For example, in property if you are working on a great development that in two years is going to make you 10 times your current income that is a fantastic goal. However if you do not have some money coming in to service that project and to cover your living expenses for two years it is not a business.
4. Waiting for perfection
So many times I have seen people with great business plans and they never actually implement them because they are waiting for the next bit of knowledge or to get their website just right or to find the perfect deal that ticks every box. The reality is you need to have the plan and then take action and implement it. Without taking action you will never achieve anything, remember your business plan is a working document that can be amended and refined as you progress and develop the business. Just get started!
5. Not having the right people
Often when starting in a business everything is being done by one person, if you want to grow a business this is not sustainable. It is then very important that you have a clear understanding of your own skills set and what elements of the business you enjoy doing. You then need to get other people into the business to fill the other roles and cover the areas you are not good at or don’t enjoy doing and then if you are truly scaling the business you should be able to get someone in to take over your role and then you know you have truly scaled your business (providing of course you are making a profit).
The other thing is to be aware of the fact that you need to employ specialists in their field to help you grow your business. This may include solicitors, tax specialists, and many more depending on your specific business. But it is important to get the right person for the right job.