Ten ways to prep your startup for obstacles ahead

Almost every established business in the UK had to face some challenges upon startup and the way these challenges are dealt with usually plays a major role in determining how fast the business will grow and whether it will be successful in the future.

This makes it vital for any startup to know how they can prepare a startup business for the obstacles ahead. Here, I list some of things you should think about overcoming, before your business even starts based on my own personal experiences in running startups:

1. Studying similar successful businesses that have come through bad timesStudying carefully how others have overcome problems involves the startup business applying the strategies that were applied by other similar businesses that started and took off successfully.
2. Having reserve cashIt is always wise to keep some cash as a buffer or to have a quick source of income, which can help in case the startup business faces challenges that might require emergency funding. Statistics show that 60% of businesses that fail to take off in the UK usually invest all their money at startup but fail to keep a back up fund.
3. Hiring competent employeesHaving employees with the right skills and ability to handle the stress of a startup plays a major role in starting a successful business. Multi talented employees will push the business until it picks up, taking on more than their fair share of work, so make sure you reward them when things calm down.
4. Define your goals to keep on trackThese goals should include your burn rate, gross margin, revenue growth and net profit. Work out how large or small your sales pipe line needs to be based on your ability to convert your pipeline into real sales.
5. Planning to scale the business requires processesYour business plan should include the ability to add more structure, people and financial resources allowing for smooth growth. You will need to spend more time working on the business and not in the business so learn to delegate everyday tasks and not try to micro-manage staff.
6. Having a solid marketing strategyThis is especially important because competition is very high in many niche markets in the UK and many successful businesses spend more than 30% of their revenues on marketing.
7. Having all the relevant paperwork in orderA startup business in the UK that does not have all the necessary documents in place, such as insurance or operating licences might face challenges if claims were made against them. Getting the all the relevant protections in place will save your business should the unexpected occur.
8. Expecting not to get instant profitBe prepared for a few months, or even a year in the red as it takes time before a new business can establish itself and start making profits. Make sure you have the operating capital sorted whilst you’re getting established.
9. Having someone to call on for legal adviceEven if the new business might be following all the rules and regulations, there are still some unforeseen issues that might in them needing legal advice, particularly when it comes to employment law – it is therefore important to know where to get legal help quickly.
10. Renting the right premisesYou may find the perfect premises for right now, but if you’re not thinking into the future it’s easy to get it wrong. Even if the startup is just to be a small business, in future it might grow and therefore it is important to consider expansion space, and alternative options for stock overspill etc.

    Knowing how to prepare yourself for every eventuality will ensure your business is startup ready, and you’ll have armoured yourself with the right tools to tackle any challenge!