The Small Business Column: with Kehlan Kirwan

For this week’s Small Business column Kehlan Kirwan looks at what you should look out for before going out on that journey to start a business.

Vision-Net recently published figures which showed that 132 businesses a day were starting up in Ireland during January. So here are some things to think about before you make the decision to start your own business, whether you’re coming from employment or have been out of a job.

You either are — or you’re not

There is an old saying that there is no such thing as being half pregnant; you either are or are not. The same goes for the decision to start your own business. The reasons for starting a business need to be valid ones. Having passion for something is not enough to produce a successful business, but it is a great starting point. So when you make the choice you need to be fully behind the venture and know what you’re getting into. You are either going to start your business or you are not — there is no halfway point.

It’s not what you know, it’s what you don’t know

So you’ve made the choice to start your business. Great! Lots of people start their own business, but few think about how they can be different. Anybody can run a clothes shop or a tech company, but how will you be different than anything on the market? Research the market and find out what potential competitors are using or offering. Better still, go out and ask potential customers what they look for in such a company. Be informed about what you’re doing. The more you know, the less you don’t know.

That scene from the movie Jerry Maguire was right. Rod Tidwell wants his sports agent, Jerry Maguire, to “show me the money, otherwise I ain’t signing shit”. You have to think of how you’re going to make revenue work in your business. The first three years are the hardest for businesses and will define the success or failure of it. Of all the advice you will hear in that time, none will be more important than managing your cash flow and getting people to pay you. Watch your pricing too, don’t get involved in a race to the bottom. The aim is to reach the top, not the bottom. You can’t build a business for free.+

It’s all in the name

Decide on your brand — and I don’t mean just a logo. What do you stand for? Why are you in business? Why should people trust you? These are very important questions which you must answer through your actions in how you do business. If you say you’re great at customer service then don’t be great, be awesome. If you say your product is the best then don’t say it, show it. People buy into brands and other people so make sure you have a long list as to why your product or service is better than your competitors. Make people trust your brand.

Forewarned is for earmed

It’s going to be very tough so be prepared. Owning your own business is a lifestyle choice and will take large chunks of your time. You will get doors slammed in face. People will hang up the phone. People will tell you it’s not good enough or try to railroad you. Be agile in your business, move with the problems you face, and use them as a chance to improve or learn. Work with people who challenge you, but respect you. Yes men are always a part of a sinking ship.