What Is A Start-Up?
When most of us think start-up we perhaps imagine the coffee shop run by a nice couple, or the sole trader who recently opened their own boutique store. The truth is start-up’s come in all shapes and sizes, let’s not forget that people such as Mark Zuckerberg were start-up entrepreneurs, but at the opposite end there are many individuals selling trinkets over Facebook (some slight irony intended) or Ebay.
A start up is simply a person with an idea, and in turn their ideas go on to become businesses. A little financial pat on the back or some words of wisdom from those that have travelled a similar road might be necessary to get the ball rolling for some but others flourish in their own way.
Start-Ups Are Good… Right?
For those that make it start-up’s aren’t just good, they are great. The successful ones become the livelihoods often not just for the individual but for many others, a well-timed and executed new business can be the next Google or Microsoft.
There is however the less enthusiastic reality that many, If not the vast majority of start-up’s simply don’t make it. Great ideas can become embroiled in red-tape or simply find that they cannot properly create turnover.
“three out of four new businesses fail.”
How Can A Start-Up Business Succeed?
Capital, backing, funding the same word hidden in many guises, put simply; cash. It has been found that a new business is more likely to become successful if it has some form of external cash support, such as a venture capitalist, A third party, often sourced from private investment which seeks to take a future share of profit, thus it is in their interest to fund viable and growing businesses.
The cash they provide can see a business get through hard times, or perhaps expand to meet demand. In modern times new businesses are faced with the ominous fact that, as a rule of thumb, their business simply won’t make profit for the first 3 or even 5 years, and that’s a scary thought to anyone wanting to enter into a new opportunity.
This creates a secondary concern for anyone that might think of entering into business, can they personally survive? It’s simply far easier (even in today’s job market) to find gainful employment with which to pay the bills and put food on the table. Starting a business is probably the last thing people would think of when considering how to line their coffers.
Don’t Give Up On Your Ideas And Dreams!
Even with all this depressing information, there is good news, the UK has in very recent times noticed just how important new businesses are, and now banks and other sources have begun a resurgence of funding for new business.
In theory there is no reason now why anyone should hold back from taking their idea to the next level and creating their own business. Sometimes it may be necessary to take advice to ensure that your idea flourishes, seeking a business mentor might just provide the break you need.
Nothing Ventured, Nothing Gained.If the public doesn’t realise that they have the power to make business then nothing will happen. Only when people come forward and notice they have a skill, a product or information that they can generate an income from, that is when we will begin to see changes. It’s time to take opportunity and grab it with both hands, hold on until it stops wriggling and claim it for ourselves.
A common question might be simply “What if you don’t have a skill or product etc?” To which I must reply with an example I personally came across recently of an opportunity made good, one from Facebook/Etsy no less.
Take some Felt Cloth, Fake Teeth buttons or teddy eyes and voila the resultant product is ‘Fugglers’. Ugly looking teddy bears, their creator is now selling so many of she’s had to employ others! Just search for Fugglers to find out more about the product. The moral of the story is that it really does just take an idea and a little work.
Properly funded start-up means that the person whom is risking their idea has little to lose from the attempt. However we must also realise that not every idea will be successful and if you seek to fund an idea then it has to at least have proven itself. Those that provide funding are all too aware that bad business can cause big losses.
Really that is what it boils down to, if you have a product which essentially sells itself you’d have investors clawing at your company to get a share, if your plan to sell snow to Eskimo’s hits their desk they may be a little more hesitant. The Government is doing what it can however to ensure that entrepreneurs do have access to funding with such plans as The Anglia Capital Initiative
There is of course crowd-funding such as kickstarter, that puts the power of investment in the hands of the people who would most likely be your target market, once again putting the power of an idea to test. but it is essential that more people understand that more is being done to help, just a quick search on-line can reveal hundreds of ways to find the backing that is needed.
So… What Is A Start-Up?
It is the creative thinking that any of us can call upon, it is the seed of business that is the livelihood of millions and it is a financial future. One that we must be prepared to take a few knocks for, but one that we must embrace. Visit that coffee shop run by that nice couple, pop into that small boutique that just opened, and check out the market traders, the private Ebayers and the Facebook sellers. They are all start-ups waiting to flourish.