Friday, 23 February 2018

Information and commentary for the small business banking industry

What makes successful start-ups

10 Oct

That ‘light bulb’ moment people get when a new idea for a business pops up is always exciting, but it’s just the first in many steps on the ladder to a successful start-up.

A business plan is crucial. It’s how people crystallize their thoughts and ideas, lay out their goals and objectives, and what they’ll use to keep the busines on track once it’s been launched. It’s also needed to show lenders and investors. There are a number of online tools available that people can use to help write a sound busines plan.

It’s important to have calculated all costs and conducted a break-even analysis, which is basically what a business owner expected to make before any profits. In other words, if they can’t break even, they’re not going to make any money and the idea might have to be nixed.

Knowing where they’re going to get the capital to get their business off the ground is essential. It could be savings, equity on property, friends and family, investors, the bank… or a combination of all.

Solid market research and a resulting competitive advantage is vital. Knowing what the market demand is like, who the competition is and a plan to beat them are all essential.

So while we all love the ‘light bulb’ moment, there’s a whole lot more that needs to happen before the business is successfully launched.

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