Its a new year and many budding entrepreneurs will finally take the plunge and start their own business but getting a business off the ground is one of the hardest things to do, especially with no experience: so can getting an experienced advisor on board make the difference?
Whether it’s been a long held dream to run a coffee shop, become a consultant, or see yourself as a smartphone app designer, making it happen is the next step.
Entrepreneurs often have a passion for business and are focused on devoting time and energy to making their business successful, not necessarily getting all the process in place to hold it together.
Getting the right support is crucial. Whether you’re looking for financial advice, independent expert business guidance from a mentor, or a friend who can act as a sympathetic ear when you’re burning the candle at both ends, it can make a big difference.
Whilst the first port of call is normally to an accountant but in most cases they won’t possess the type of skills or experience you will need as an entrepreneur to get you beyond the planning phase of your business without a few mishaps on the way.
As a former entrepreneur I work with a number of startup and early stage businesses through my work as a Mentor with the Startup Loans Co as well as with my own clients and through this work there are normally 5 key pieces of advice that I give to new startups.
1) Retain a Trusted Advisor or Mentor
You’ve got the great idea and it’s really important that you truly enjoy the experience of running your business. Just because you are starting a business, you don’t have to be an expert on every aspect of it. Your role is to focus on the USP and you could waste time – and money – trying to do things you aren’t qualified to do, so find someone you trust who has relevant experience and who “gets it” to act as your trusted advisor or mentor through the formative steps.
2) Get help to write a business plan
To avoid the pitfalls of investing money into a business idea or new product that may not work, an advisor or mentor can help you look at the reasons why you’re starting the business. It’ll stop you losing money and offers the chance to ‘stress test’ the business potential faster. It’s worth remembering that your advisor will add value to your company since your plan will have gone through a “validation” process.
3) Set your goals
Once your business plan is in place, establish your short, medium and long-term goals with your advisor. Once these are set your advisor will be able to help you evaluate your goals as you move your business forward based on real performance.
4) Get the money lined up
It may not be Dragon’s Den, but if you need to approach potential investors or lenders your advisor can help you find them – traditional or otherwise. In the current climate banks may not be open to new ideas and don’t like businesses without proven track records so alternative funding will probably have to be sought. Your advisor should be able to help you understand what is available to your particular business.
5) Get networking
Your advisor/mentor should have a substantial network of contacts in your industry and if they have been involved from the start they are more likely to make introductions to other businesses that could become potential partners or prospects!
A trusted Advisor or Mentor in my opinion is an invaluable source of information and experience which should be readily accessible to all startup businesses and in a lot of cases these “Guardian Angels” are willing to offer their time and services on a vastly reduced or contingent basis following success.
You should consider any costs associated with retaining an advisor/mentor to be money well spent since you will in almost all instances gain returns far in excess of the original cost.
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