Are you prepared to go it alone?

If you are thinking of setting up in business, first ask yourself if you'd apply for the following job?

Wanted: Eternal optimist and good all-rounder required for new enterprise
Activities unspecified; hours long; salary not guaranteed

The successful applicant will have a sound grasp of finance and able to prepare and analyse relevant financial information including forecasts. Initially they will be responsible for sales and marketing, so will need a thorough understanding of their sector and how to bring their product or service to market. Knowledge of pricing strategies will be particularly useful. Awareness of the regulatory environment will be needed including compliance with burgeoning health and safety demands. HR management will be an additional responsibility. Good general management skills will, of course, be essential.

Personal qualities are important and the successful applicant should have: the easy-going personality required to deal with customers; firmness when dealing with suppliers; the tact and diplomacy that goes hand-in-hand with HR. Boundless enthusiasm is a pre-requisite, combined with determination, attention-to-detail and exemplary organisational skills. Fortunately, in the early stages, the ability to delegate will be less important as the appointed individual will be dealing with all matters personally.

Remuneration is difficult to predict. For the first year it may be nil. Indeed, the individual may well be in a negative salary position. But for those with staying power and the right support, the long-term prospects are excellent.

Hours of work are unlimited. Salaried holiday may not apply until the business is fully established.

Those interested in applying may wish to give the matter a little more thought before jumping in unprepared.

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But, despite the challenges of getting started, many enterprises do survive the early years to become successful businesses. So, how can you boost your chances? With over 30 years of experience supporting a wide variety of start-ups in the Cambridge area, I've learned a thing or two about the key factors for success.

Know your business finances
Key Performance Indicators or KPIs are critical; every small enterprise needs systems that show how the business is doing. Your KPIs could relate to sales, gross profit, debtors, bank balance, performance against budget, stock levels or anything else that is important to you. I am regularly dismayed by the crude financial controls used by many small businesses, yet setting up KPIs need not be difficult.

Temper determination with realism
When you start out you need to ask yourself whether you have the ability to dig deep when things look bleak – it is not easy. Realism involves knowing when to stop digging.

Excellence and value for money
Whatever you are selling, you will not go far wrong by adhering to this simple principle. What else would you yourself want when choosing a product or a service?

Key tips for technology businesses
Although the basics apply, these factors don't fit quite so neatly to typical technology start-ups that involve R&D, external finance and where sales may be a distant dream. It would be nice if things developed to plan: clever idea; government grants; VC funding; smart offices; buy-out by Google. But things are rarely that simple. I therefore suggest the following as additional must-haves:

• Expert guidance from an experienced advisor
• A clear vision of what your product is and how best to get it to market
• A management team and, ideally, a scientific advisory group
• A really compelling business plan.

So by all means apply for that job. But keep your mind open to the difference that expert advice can make. A supportive Chartered Accountant who offers practical hands-on help and understands what new businesses need, can ensure that you are better prepared and maximise your chances of success.

Article Source: http://gamblingarticlessite.com

Julian Stafford is a partner in Staffords Cambridge LLP, a leading independent Cambridge Accountant company, and specialises in advising new and developing SMEs.

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