Getting business ventures off the ground – UK SMEs must plan ahead, take advice, and get capital
Running a small business can be a challenging, stressful and daunting prospect. Original aspirations may go out the window as you are bogged down with accounting, marketing or simply making the right number of sales. There are many mistakes businesses can make which threaten their business and its future in the industry. However, many UK businesses are recognising the need to future-proof businesses to ensure growth and continued survival. By looking forward, companies can make plans to expand and ultimately be more successful.
According to Forbes, 8 out of 10 businesses fail because there is no clear business model. Your business model is a tool which should not be underestimated. Draw it up, revise it, read it, edit it. A company’s business model should pinpoint how your unique business is different, and how you expect to move forward in the future.
Components of your business model and plan might include:
- Description of your business, its vision, goals, etc
- Potential problems or threats your business has
- Financial information, such as your balance sheet, income statement and cash flow analysis, as well as your sales forecast
- Analysis of your competition
- Marketing or promotional activities
- Plans for managing company growth
(ref: http://www.businessknowhow.com/startup/business-failure.htm)
Mentoring
Typical ideas indicated in a business plan might include investing in staff, extending your stock line, or opening up a second location. Many UK businesses choose to invest heavily in marketing or advertising, which is notoriously expensive. Everline writes about how a mentor could help your business if a company is stuck for ideas on how to progress.
Their blog post states how by having a mentor, small business owners can aspire to do, and be, more. A mentor can benefit a business by showing business managers and leaders how to avoid pitfalls as well as how to make the most out of opportunities. You can find mentors online or through business advice organisations.
Lack of Capital
Of course, another issue is that many businesses find a lack of capital holding them back. Even the best laid business plans need capital and any SME may find it difficult to obtain the right amount of money to match the project.
However, there are ways a business can source the finance they need, through business loans or cash advances. Traditional lenders may charge a hefty sum, but there are now many alternatives online which allow flexible repayments and more realistic payment terms.
Don’t be fooled
Many UK entrepreneurs are blinded by their great idea – which may well be a great idea. However, without the right planning, capital or support, your idea will never get off the ground. It is vital UK businesses are self-critical, but of course praise where necessary, to help gain a sense of perception and to reflect suitably on the business overall. Sometimes a step back, and a removal of the rose-tinted glasses, will enable SMEs to tread cautiously and be more realistic about their goals and future plans.