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Top start-up tips from an expert

Nov 24 2006

If you are thinking of starting a small business it is always wise to get advice from someone with relevant experience in the field and to learn from those who have been through the process themselves. SmallBusiness.co.uk asked entrepreneur Duncan Cheatle to give us his top tips for start-up companies.

Cheatle has advised hundreds of entrepreneurs working with start-up, fast-growing and turnaround businesses. He is also founder of The Supper Club, an invitation-only club for the UK’s highly ambitious entrepreneurs. His advice:

Do it for the passion not the money: It’s a bad idea to start something with an exit and a fortune in mind, you'll probably fail. This was common during the dot-com era where people came up with ludicrous business ideas, delivered by inexperienced teams.

Stick to what you know: Philip Green, the retail entrepreneur, gave this advice. He only invests in retail businesses, because that's what he understands. If you go into something you know nothing about, you will make things much harder for yourself.

Don't give up too early: Successful businesses are usually very different from those described in their original plan. Try something and if it doesn’t work, try to do it differently. Persistence is a vital quality for any entrepreneur.

Find yourself a mentor: Having a mentor can be a huge support and can help you see the wood from the trees. First-time entrepreneurs often fail because they don't have a more experienced person from whom they can learn and turn to for advice.

Cash management: Cash is king, so manage it well. Ensure you have appropriate forecasts and monitor against expectations. You don’t necessarily need a full-time finance director but do not think a bookkeeper will manage your cash for you.

Build sales before anything else: Don’t spend too much time designing a nice website over getting out there and closing a sale. You need clients to build sales - even if you initially offer them a reduced rate, a free product or service.

Don't rush: Winning clients takes time. Nothing can replace experience and you don't want to alienate potential clients by getting it wrong.

Be wary of bad advice: When cash is tight, you don't want to get locked in with the wrong suppliers or end up taking bad advice. Before you pay for advice, ask for references from their previous clients.

Find out more about the supper club by clicking here.

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