Small business startup advice – SmallBusinessVoodoo.com

OK, we’re half way through our preparation to face the Dragon’s Den. If you missed Plan To Face The Dragon’s Den Part I then refer back. Let’s move on to the next stage, steps 7 -12.

7. Proof

A business idea on its own is worthless. The world is awash with ideas. You must elevate your business idea to something of commercial value before you walk into the Dragon’s Den. You need proof. Proof essentially breaks down into two parts:

- Does your product work? Make sure you have a working prototype, or better still the real thing. A malfunctioning prototype and you can kiss a warm reception goodbye.

- Will anyone buy it? Research is of little value. Particularly on the scale that your limited funds are likely to reach. Try selling your product first. Get listings from high profile retailers/ wholesalers. If you can’t get listings, get a purchase order. Get a letter from the CEO saying how he will stock your product. Get anything that provides evidence that your product will have buyers. And lots of them. Read more »

You’re keen to subject yourself to the Dragon’s Den. But will you end up champ or chump?

The Dragon’s Den goes from strength to strength. We can’t get enough of it. You can now even take part in the online version of the show securing up to £50,000 for your enterprise.

Individuals endlessly expose themselves to the Dragon’s Den. Occasionally it pays off but we continue to be stunned by the ill preparation and idiocy of so many.

How we cringe when a Dragon fires a gentle opener “what’s your expected turnover next year?” to which the hapless entrepreneur replies “er, um, er… ten million pounds”. When pressed a little harder, it transpires that they meant to say “ten thousand pounds”. No, wait a minute, that’s not right um, oh, er… I don’t know, quite a lot anyway.

What the hell…who’s going to be interested in a plastic cucumber protector after all?

Anyway, if you really want to succeed in the Dragon’s Den and you’re name isn’t Levi Roots then here’s the first six of a twelve point checklist to see you on your way: Read more »

How many times have I heard small business management tell me “I don’t need a business plan”?

Let’s get this straight. All businesses plan. Whether they like to think they do or not. As soon as you order additional inventory or take on new staff in expectation of a greater workload, then you’re planning. So the issue is not whether you should plan or not, you can’t help but plan. The issue is how do you go about business planning ?

The only businesses who may legitimately say ”I don’t need a business plan” would be small scale and steady state – in other words not growing in turnover or contracting. In such a case everything stays more or less the same week in week out. Thus all the information is probably in the proprietor’s head anyway and that’s fine.

But as soon as growth or contraction is imminent, you can no longer say that you don’t need a business plan.  It becomes critical to make assumptions about how that growth is going to look and that means, you guessed it, planning.

Let me put it this way. Let us suppose that I have in my possession a piece of software that allows me to input your personal details. And from that I am able to map out a model of the next ten years of your life. Wouldn’t you at least be a little curious?

What if you could see that at the age of 39 you were going to die of sclerosis of the liver from excess alcohol intake. Wouldn’t you like to know that? Wouldn’t you like the chance to do something about it now and avert such a calamity? Read more »

Did you say “Why do small businesses fail – nearly always?”

Does that really mean that MOST small businesses fail? Ouch.

Like it or not, 75% of all small businesses in the UK fail within their first 5 years. So, why do small businesses fail ? Let’s take a look:

- Lack of experience This is either lack of experience with the main theme of the business or simply lack of experience at running small business.  Or both.  People who have good ideas don’t neccessarily run good businesses. “It’s my train set so I’ll drive the train” tends to prevail. Personally I would rather employ a train driver. a.k.a. The Intrapreneur.

- Insufficient capital This can be expenditure on capital items as well as working capital i.e. the cash needed on a day to day basis to keep the business afloat. Arises from a combination of poor planning, over enthusiastic sales estimates and lack of a contingency fund. Read more »