Unfortunately, the whole process can still be a minefield for many aspiring entrepreneurs and only a small percentage of start-ups actually make it big in the world of business.
Luckily, support is available. Last year at the Open Innovations Forum in Moscow, some of the world’s top venture capitalists and angel investors outlined the key principles needed to increase a start-up’s chance of success. Here they are:
1. Create new value
Produce something that makes a difference. To do this you have to find something that hasn’t been done before – whether that be an innovative product, or a new kind of service.
2. Meet market demand
Ensure there really is a market demand for the product or service you have in mind. Serial entrepreneur Nava Swersky Sofer said companies often have “a wonderful solution to a problem nobody cares about”. You might find something useful – but will anyone else?
3. Aim high
Don’t be afraid to set your sights high from the beginning. Set big goals and think about your business on a global market rather than narrowing down your target demographic too much. It might sound like more work, but targeting a small group of people takes just as much hard graft.
4. Work hard
Be prepared to work all hours of the day and night when you first set up your business. Being your own boss may sound like a great lifestyle but when your dreams, livelihood, and maybe even the livelihood of your family rest on your efforts, you will have no choice but to have stamina of steel.
5. Keep a concise business plan
No matter how complex your business is, keep your business plan as concise as possible. Don’t create an impenetrable 100 page booklet – if you can’t write the premise of your idea on the back of an envelope then you’re probably over-complicating things.
When you launch a start-up, your financial plan will be your most important document. To find out how an accountant can help in these early stages, please visit our Start a Business page.
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