Tips For Getting A New Business Off The Ground by Luke Johnson

Over the weekend, in The Week, I read these start-up tips by Luke Johnson which were originally published in the Wall Street Journal Europe.   Luke Johnson, chairman of private equity house Risk Capital Partners, has made a success of businesses as varied as Pizza Express, bingo and dentistry.

Here are Luke’s tips if you are contemplating going into business for yourself:

Consider moonlighting or going part-time. A steady income to cover personal overheads can be a life-saver while you develop your concept.

Do what you know. Don’t plunge into a new sector without doing extensive homework. If you start up in an  industry you know, you’ll benefit from contacts and credibility.

Always write a comprehensive plan. Even if you don’t need to raise cash, it’s worthwhile expressing your thoughts coherently. Include a timetable, product and customer descriptions and financial projections as a minimum.

Consider finding a partner. Teams are generally more likely to succeed than one-man bands – and are often seen as a better prospect by capital providers.

Never give a bank or landlord a personal guarantee. You risk being made bankrupt if the business fails. Too many first-timers agree to such demands.

It’s the execution, not the idea that counts. First be sure you’re willing to do the gritty essentials, like selling and book-keeping.

Let's Talk...

...about your business or plans to start one. Book yourself in to my online diary now for an Entrepreneur of the Day call. These are entirely free of charge and with no strings attached. My goal is to get to know you, offer you a great listening to and provide some guidance, clarity and inspiration.

Please Leave A Comment...

*

This blog is kept spam free by WP-SpamFree.