Every year, thousands of people like you start a new business…
Thousands more simply dream about it; allowing fear and a lack of confidence to hold them back. If you’re one of those thousand dreamers, you’ve probably thought of plenty of reasons why your start up could fail.
You’re probably wrong.
Reason 1: You’re not qualified
Academic credentials are often emphasised throughout our lives; how many times are we told that we must do well at school to succeed?
In truth, whilst academic skills do come in useful, they’re far from the be-all and end-all that our teachers made them out to be. One of Britain’s most prominent entrepreneurs, Richard Branson, struggled at school and left at the age of 16 with no qualifications; today the Virgin Group encompasses more than 400 companies.
Think less about what qualifications you think you need, and more about what skills you have and how you can make use of them. If you are missing certain qualifications or skills can you work with someone who can fill the gaps, or invest in training?
Reason 2: You haven’t got the money
Many people think that it’s impossible to start a business without significant capital investment of their own. Whilst, money is useful, there are plenty of finance options so – you don’t necessarily need to invest all the money yourself.
From crowdfunding websites to angel investors and Start Up Loans, you can choose from a variety of sources to approach, building up a portfolio of investors to give you the cash flow you need. The important thing is that you plan, work out what capital you need, how it will be spent, and document it properly so that potential investors can see how any money will be used.
Reason 3: You haven’t got the patience
You might think that starting up a business will involve a lot of complicated paperwork – and that’s enough to put many people off, because they just haven’t got the patience to fill out an 18 page form just to register their company.
Depending on the type of company you choose to set up, there will be some paperwork, but it’s not as complicated as you may think, and there’s plenty of help available. Quality Formations assist with the setup of limited companies, which are a little more complex to register than if you choose to operate as a sole trader, however, limited companies can be seen as a better option should you wish to invite investors.
Reason 4: You can’t beat the competition
You’ve got a great business idea, but there’s a problem – somebody else has already had the same idea. But this doesn’t mean that it’s time to give up; the mere existence of a competitor doesn’t mean there’s no room for you.
It’s important to look at the actual demand for your product or service; if the competition isn’t meeting current demand, there’s room for you to co-exist. What can you do to differentiate yourself from the competition? Market research is a vital first step for any start-up, as it will give you this essential information, and help you to work out how to position yourself to meet the unsatisfied demands of your target demographic.
Quality Formations provides effortless online company registrations and a wide range of other specialised services for businesses.
Thinking of starting a business? Check out our free online courses in partnership with the Open University on being an entrepreneur.
Our free Learn with Start Up Loans courses opens in new window include:
- Entrepreneurship – from ideas to reality
- First steps in innovation and entrepreneurship opens in new window
- Entrepreneurial behaviour opens in new window
Plus free courses on finance and accounting, project management, and leadership.
Reference to any organisation, business and event on this page does not constitute an endorsement or recommendation from the British Business Bank or the UK Government. Whilst we make reasonable efforts to keep the information on this page up to date, we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. The information is intended for general information purposes only and does not take into account your personal situation, nor does it constitute legal, financial, tax or other professional advice. You should always consider whether the information is applicable to your particular circumstances and, where appropriate, seek professional or specialist advice or support.