STARTING A NEW BUSINESS, BACKING A NEW COMPANY, SUCCESSFUL ENTREPRENEURS

Starting a new business * backing a new company * successful entrepreneurs * starting a new business * how to succeed in business * new product launch * start up company * business success * business consultants * help * advice * mentoring * get rich * make a fortune

Go to the start of this section about how to start a new company.

The most important thing you should focus on when starting a new business is sales. In fact, sales levels are the most important aspect of any business at any time both now and in the future. Generating sales will increase cash flow and provide the income needed to develop and expand the business. Sales people are the most important part of any business. Until someone sells something, orders don't come in, machines don't turn and cash flow dries up.

This might seem so blatantly obvious to you but most businesses that fail, go under because the principal was concentrating on other, seemingly more urgent business matters instead of focusing on selling. This is easily done, as explained on the previous page, when you are a one or two man business, you have too many roles to perform and not enough time to do them.

Understanding the difference between something that is urgent and something that is important is essential. Making sales is both urgent and important and nothing should ever get in the way of you making sales. The day you allow any other task to get in the way of you getting on the phone or making sales calls, you will have added the first nail to your company's coffin.

Many failed business entrepreneurs would argue that there are numerous other tasks that need to be performed that are essential to the smooth running of a business. Whilst this is true, most of them can be dealt with outside of normal office hours when potential clients cannot be contacted.

When you start a new business, you need to work 12-16 hours per day 7 days a week. Do not for one moment believe that your great business idea is going to take off and earn you a fortune from day one. Good business ideas don't necessarily make good businesses, this takes good management, good business sense and experienced business people.

Look at any really successful business and you will see entrepreneurs that has surrounded themselves with business partners that have the skills and experience they lack or don't understand. These partners are normally taking care of the day to day business management whilst the entrepreneur is concentrating on the things that will generate the profits. It is the business partners that provide the resources, systems and manpower that free any business entrepreneur to make the serious money.

Some business partners can include:

• The Company Secretary. The person ultimately responsible to the government bodies who legislate all corporate law. Government initiatives and legislation are being introduced and changes all the time. Fall foul of any of them and you can face stiff penalties.
  
  
• The Finance Director. Responsible for overseeing the day to day finances, dealing with banks, bad debts and keeping the company on a stable financial course. It is the FD who should know if the company is profitable and hitting financial targets. Many a company with a high turnover finds itself in trouble because the Principal was not watching the bottom line. Turnover and profit are two totally separate things.
  
  
• The Marketing Director. Responsible for corporate image, message and marketing strategies. This is an extremely specialised field. Just because you know your product doesn't make you a marketing specialist. This is why many successful companies outsource this task.
  
  
• The Advertising manager. Responsible for negotiating and buying advertising at the best rates. Advertising is the vehicle used to carry the marketing message. They are not the same thing. Response rates, market research and managing the advertising budget are just a few of the tasks involved.
  
  
• IT Director. Responsible for the IT systems, implementation, internet presence and networking required to make the business efficient and run smoothly. The business will be more profitable if the IT director makes sure that information is easily accessible.
  
  
• Sales Director. As well as being the MD and salesperson in the early days, this job will also most likely fall on your shoulders. Setting realistic sales targets with the help of the financial and marketing directors and ensuring that these targets are adhered to are the most essential part of any successful business.

There are obviously other important roles and functions that other business partners can fulfil (as mentioned on previous page). However, having business partners who have the experience, know how, knowledge and skills necessary to fulfil these roles is essential to the success of any new business.

Most start up businesses will not have the money to pay for this level of expertise on their payroll. There are, however a number of alternatives.

• You outsource these tasks to get help starting your new company.
  
  
• You import business partners experienced in these areas who are prepared to back your idea in exchange for shares in the new company.
  
  
• You seek financial backing from a bank or business angel.

If you have an idea for starting a new business, but don't have a great deal of experience, then even the task of writing a business plan with financial projections will appear daunting. Don't worry, we are here to advise and help with starting a new company.