Starting a new business is as exciting as it is uncertain. A common statistic thrown around is that 75-95% of new businesses fail. While you have to go into a new business venture with the utmost belief that it will work, it is also equally important to understand the risks.
We've broken down five key steps that a business owner needs to consider when it comes to creating a successful business.
Testing
The thought of starting a new business is exciting and therefore many people are keen to get through the testing phase as quickly as possible. This is where for many businesses their path to failure is set in stone as key fundamentals and lessons are missed due to the development stage being completed too quickly. Take your time, speak to other people outside of your business and try to speak to business owners of similar businesses to get a true understanding of the landscape before you make the plunge.
Launch
When it comes to your business opening its doors, whether that be literally or in an online sense, there are many things to consider. This is the first time your business is shown to the world meaning the fundamentals need to be in place and at a good level.
Many businesses go live without checking the details thoroughly resulting in missed sales opportunities. Don't forget to check your processes, links, social media, imagery, etc are all in place before cutting the ribbon on your new venture.
Growth
If you have reached this stage, congratulations, you've managed to successfully get your business off the ground. You'll probably find that the business is relatively consistent and that the majority of staff are at full capacity.
The challenge when it comes to growth is being able to set aside the time and finances in order to acquire more business while not changing the level of service being offered to existing clients or customers.
Expansion
You may now be at a point where your business has established itself within its sector and location. The next test now is to expand further whether this be moving into a new area, adding new products and services or even looking to expand internationally.
In many ways this requires you to repeat the previous steps again, including the research phase, to ensure you can replicate your success in a new area. Mastering expansion will really take your business to the next level in terms of position in the industry and potential worth.
Exit plan
If you have managed to navigate the first four steps you are probably in a position where your business is well established, has dramatically grown in size and now has a much higher worth. Now is the time to think about your future and the future of the business.
There are many options in this scenario and mainly determined by the level of involvement that you want to have moving forward. Should you sell the business, or remain the owner and move away from the day-to-day running, you may need to appoint a successor to ensure the continued success of the company.
One fundamental throughout the process of creating a successful business is having the right people around you with the right skills. Our expertise are in people, whether that be hiring, workforce planning or training and development. We can help you turn your idea into reality by finding the best people for your team.