What they don’t tell you about starting a business…
Tradition says that you need money to start a business and ‘friends, family and fools’ are the most common source of that funding. While some businesses need money to buy equipment, get premises and pay staff, many can get started and test-trade with limited cash.
Nor do you need to spend months getting all the bits of the jigsaw in place before you launch. ‘Fail early, fail fast’’ is sound advice for the bold (some would say irresponsible) risk-taking entrepreneur. The theory is that getting your product/ service out there as soon as possible means your relatively limited investment of time and money will mean you’re more willing to accommodate failure, learn, and change your plan accordingly.
Which leads us to the concepts of the ‘lean start-up’ and ‘minimum viable product’. Both are about saving money until you have evidence to justify expenditure (for short term benefit) and investment (for longer term benefit).
There are other ways to save time and money at the start-up stage. Make the most of an amazing range of free business support. For a selection of free support and advice see https://enterpriseessentials.wordpress.com/free-lunch-business-support
You can also create a minimalist business plan until you have more solid information on which to base your future business development. To quote Michael Fowle from the Newcastle Business School at Northumbria University “Full business plans are a distraction. Use the Business Model Canvas and post-it notes for a near instant plan that is more flexible and valuable than the back of the envelope. [Newcastle Business School] allow 77 days to develop the idea and get “traction”, and then 77 days to turn the proven idea into a properly resourced business.”
Finally, some advice from readers of the Guardian newspaper…
- A 30-day MVP [Minimum Viable Product] works well for IT [techy] products, but is harder (though still a useful exercise) for bricks and mortar and services start-ups
- Superniche [a very specialist and targeted product or service] is exactly right. The only person that really matters is the customer who will fund your business (try The Mom Test by Rob Fitzpatrick).
- Know your customer. Get their commitment before you waste time and money.
Lean thinking https://www.squawkpoint.com/2012/07/lean-thinking
The Lean Start-up http://theleanstartup.com
Minimum Viable Product https://blog.leanstack.com/minimum-viable-product-mvp-7e280b0b9418
How to start a business in 30 days www.theguardian.com/small-business-network/2016/aug/19/how-to-start-a-business-in-30-days
The Business Model Canvas https://strategyzer.com/canvas/business-model-canvas
For other Trade Secrets in this series, go to https://enterpriseessentials.wordpress.com/category/trade-secrets