Things to Consider Before You Start Your Own Business

Statistics published earlier this year showed that 4 out of 5 new businesses fail within the first year. The report detailed that out of 480,000 business start-ups around 384,000 of those fail within the first 12 months.

So, what are the pitfalls to avoid if you are a new business?

There are definitely some things you should consider before you quit your marketing job to invest in those thermal wellington boots for dog-walkers in Chelsea.

Here are some things to consider:-

Plan, Plan, Plan [/b]

Maybe planning isn’t your thing? Maybe you hate all the details, but are captivated by your idea. You can imagine your thermal wellington boots, taking over the shelves in all the major department stores. You can see the colours and patterns so clearly on the shelves - leopard print and shocking pink.

Ideas are the starting point, but it is imperative to consider the practicalities. You can obtain a copy of a draft business plan, and go through it meticulously. This helps flag up things that you may not have considered, and challenges you to find a solution.

If your skills lie in the creative, then draft in some help from a logically-minded chum. Think about how you would handle the other sides of the business as well as the design and pioneering of the product. Do you know anything about obtaining investment? Can you handle a social media campaign to get yourself noticed?

Think, Revise, Obtain Feedback [/b]

Imagine you were going on Dragon’s Den and you had to present your product, how would you defend it? What is your target market, and why do they need this product? Why should anyone invest in this?

Ask your family and friends to read over your business plan, allow them to give you constructive criticism. Try not to get defensive, you need to have an open mind and listen to the advice of others if you are going to be successful in your venture.

Consider All Outcomes [/b]

Look into the worst case scenario; think about how you would handle things if your business did not take-off as you had hoped. Research all the options and the solutions you may need to consider, such as a Company Voluntary Arrangement (CVA). This debt repayment method allows debtors – through a Licensed Practitioner such as Gibson Hewitt– to come to an arrangement with their creditors in relation to repayments. This is a preferred alternative for a lot of businesses.

 

[LekshmiGPilllai]

This article hits the nail on the head—having a great idea is just the spark; what really drives a business forward is solid planning and execution. It's shocking (yet unfortunately not surprising) to read that 4 out of 5 new businesses don’t make it past their first year. It really reinforces how vital it is to treat entrepreneurship not just as a passion project, but as a structured, strategic endeavour.

The emphasis on planning and seeking feedback especially resonated with me. Too often, early-stage entrepreneurs skip over business modelling and market validation because they’re caught up in the excitement of their idea. But imagining your product on shelves isn’t the same as building a brand people will actually buy into.

And I loved the Dragon’s Den example—it’s such a great way to test your pitch and sharpen your strategy. If you can’t confidently answer the tough questions, it’s time to head back to the drawing board.

Lastly, the mention of a CVA as a fallback shows real maturity in business thinking. Preparing for the worst doesn’t mean expecting to fail—it means protecting your dream by being realistic and resilient.

A must-read for anyone about to take the plunge into entrepreneurship!