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!

 

[Dhruv Bindhani]

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.

The article from October 2013 highlights common pitfalls that lead to the high failure rate of new businesses, with statistics from that time indicating that 4 out of 5 new businesses fail within their first year. It provides essential advice for aspiring entrepreneurs to avoid becoming part of this statistic.

Here are the key takeaways:

• The High Failure Rate: A significant majority of new businesses, approximately 80%, fail within their first 12 months, based on 2013 data. This underscores the need for careful preparation.
• Plan, Plan, Plan:
  
  • Having a brilliant idea is just the starting point; meticulous planning is crucial.
  • Entrepreneurs, especially those with creative strengths, must consider the practicalities of their business.
  • It's recommended to obtain a draft business plan and go through it in detail to identify overlooked aspects and potential challenges.
  • If planning isn't a strong suit, seeking help from "logically-minded" individuals (friends, mentors, or professionals) is advisable.
  • Consider all aspects, from obtaining investment to handling marketing (e.g., social media campaigns).
• Think, Revise, Obtain Feedback:
  
  • Critically evaluate your product or service as if pitching to investors (e.g., "Dragon's Den").
  • Clearly define your target market and explain why they need your product.
  • Crucially, seek constructive criticism from family and friends on your business plan.
  • Maintain an open mind and avoid defensiveness when receiving feedback, as it's vital for success.
• Consider All Outcomes:
  
  • Plan for the worst-case scenario. Research how you would handle situations if your business doesn't succeed as hoped.
  • Understand options for financial difficulties, such as a Company Voluntary Arrangement (CVA), which allows businesses to arrange debt repayments with creditors through a Licensed Practitioner. This is often a preferred alternative to other forms of insolvency.

 

[StartupTalk_KG]

Start Smart, Not Just Fast

This is such an important checklist — and I’d add that many people underestimate the emotional and strategic load that comes with launching a business.

Having worked closely with early-stage founders, here are a few *often-overlooked things* I advise every aspiring entrepreneur to think about *before* taking the leap:

1. Know *Why* You’re Starting

It’s tempting to say "I want freedom" or "I hate my job," but your *reason must outlast your frustrations*. Ask yourself:

* What problem do I care deeply about solving?
* Am I ready to face risk, rejection, and reinvention?

Your “why” becomes your anchor when the excitement fades — and it *will* fade during rough weeks.

2. Your First Business Model Doesn’t Have to Be Sexy — Just Profitable

You don’t need the next Uber or Airbnb to succeed. In fact, most successful entrepreneurs I know started with simple, service-based businesses:

* Freelance consulting
* Social media management
* Online tutoring or productized services

Start with something that generates cash flow and teaches you how to sell. You’ll learn more doing \$1,000 in sales than reading 10 startup books.

3. Give It Time — But Set Limits

Yes, persistence is key. But so is knowing when to pivot or pause. Give yourself a realistic time frame (e.g., 6–12 months) and clear criteria to assess:

* Is this gaining traction?
* Is it burning me out?
* Am I learning or just looping?

Build with intention, not blind hustle.

For others reading:

* What was *your* biggest surprise or hard lesson when starting out?
* If you could go back and give yourself one piece of advice before starting, what would it be?

Starting a business isn’t just about passion — it’s about discipline, clarity, and the ability to adapt faster than the market moves.