Serial Entreprenuers – one business is not enough!
18 September 2008
Derek Mapp and Bob Pynegar
- Every business has a shelf life - a good idea only remains a good idea for so long. A skilled entrepreneur knows when to move on.
- There are different types of entrepreneurs – some are great at setting up businesses, some are great at building them, some more skilled at scaling them down. You need to assess your own skills and decide on your specific strengths.
- The first points of contact in a business are the front line staff such as receptionists, sales people etc; they are key to creating the right image and perception of the business. Recruiting the right people and training them is vital. Investment in training these people will reap rewards.
- Pioneering an idea is extraordinarily expensive, time consuming and risky. Let others incur the expense of testing and establishing an idea. Learn from the mistakes of others. There are virtually no business ideas that have not been thought of. What you need to do is come up with a new angle on how to add value to an existing product or service.
- "Cash is reality – turnover is flattery". You have to have access to cash to make a business profitable. Good businesses are those which can generate good margins on their sales. The levels of margins are often over-looked by start up companies.
- "Plan one’s work and then work one’s plan" – unfortunately this is easier said than done. More businesses fail then succeed. In USA under Chapter 11 debtors are suspended and businesses have the chance to trade out of difficulties. This doesn’t happen in the UK where we are too cynical about success and too critical of failure. There is no shame in failing. The important thing is to learn lessons. However, you need to emerge from business failures with your reputation and integrity in tact.
- The three most important things there are for Entrepreneurs
- Own Skills
- Networks
- Reputation
- There are still opportunities during a time of recession. If you have access to cash there are still good deals to be done especially in areas of property acquisition, liquidation, fire sales, etc.
- Obtaining investment from banks is getting harder. However, there are business angels around who are looking for investment propositions.
- Equity is the most expensive form of investment – don’t give your business away. Avoid the Dragon’s Den trap.
- Be careful about going into partnership unless you really know the other person and their strengths.