Avoiding Bloopers

[BliarsGoing]

Ok, you're considering setting up in business for yourself for the first time. Now as this is the business section I'm assuming a lot of you have done this. What advice would you give someone considering going it alone for the first time with the benefit of hindsight.

Did you make mistakes/good choices regarding:

Choosing your product/service.
Location.
Establishing the size of your market.
What things do people often overlook or forget to factor in.

I'm keen to understand the potential pitfalls before I head down any given route. I've already posted about franchising but I also want to give full consideration to starting up something up from scratch.

Do I stick with what I know (IT) which I think will diminish over the next twenty years or do I take the full insanity route and jump into something of which I have little prior knowledge? Would that be potential financial suicide?

[Piglet]

BliarsGoing said:

Do I stick with what I know (IT) which I think will diminish over the next twenty years or do I take the full insanity route and jump into something of which I have little prior knowledge? Would that be potential financial suicide?

Consider using your IT skills to earn an income on a consultancy basis whilst you use the rest of your time to do something different/set up a new business/learn new skills etc. etc.

It doesn't need to be either/or - think about "portfolio employment" (today's buzzword!)

[steviebee]

I'm constantly amazed at the amount of business start ups that fail to budget properly for marketing.

As a rule of thumb - year 1 is effectively 12 months of solid marketing and you need to acquaint yourself with the cost of this.

A few weeks back, we had a couple come into the studio who were in the process of starting up some type of haulage firm. They wanted a logo, stationery, a website, an 8 page colour brochure (with flap on the back cover) and a couple of pull-up banner stands. We quoted them just short of £5k but they had only allowed £800 in the business plan for the stuff.

As for what route you go, I'd stick with what you know and then evolve. The largest Ad Agency in the world (WPP) started life as a company making paper clips (hence WPP = Wire and Paper Products!)

Good luck.

[srebbe64]

My advice would be let it "evolve" rather than do the "big bang". Start off the business in your spare time with the security of a regular job / income. As your sideline takes off, giving you some satisfied customers (references), then take the plunge.

[BliarsGoing]

srebbe64 said:

My advice would be let it "evolve" rather than do the "big bang". Start off the business in your spare time with the security of a regular job / income. As your sideline takes off, giving you some satisfied customers (references), then take the plunge.

Ahem, redundant from Jan 5

[RichUK]

The most poignant piece of advice I was given was, to remember that you'll work harder and longer hours that you ever did before, but that if you do it right, you'll never go back to employment and you'll also have fun too.

[Smartie]

I would say don't underquote to get the business, especially if it's repeat business. Very difficult to increase prices significantly once you've started.