Chabz is a fitness fanatic. When he’s not at the gym working up a sweat, you’ll find him at the local athletics club coordinating group activities and training the younger members. During the lockdown he missed the fact that he couldn’t access the gym to use its state-of-the-art equipment, but on a morning run with a friend, he came up with an idea that could revolutionise the fitness industry – making world-class gym equipment both accessible and mobile. Our friend Chabz is about to enter that ‘enterprise rollercoaster’ known as the Business Lifecycle. So, what should he consider at this stage?
From idea to start-up, through to the growth and maturity phases, it is fair to say that cultivating a new business will always be challenging. Each stage of the business lifecycle will bring with it a unique set of obstacles and requirements. You will need to be flexible in your thinking – finding ways of adapting your strategy as you go. For instance, you will require a different approach to market entry as opposed to maintaining your market share.
Throughout this series, we’ll provide an overview of each stage, and important considerations for each. (Not all businesses will experience every stage of the business lifecycle, and those that do may not necessarily experience them in chronological order.)
“I have an idea!” This is the very beginning of your business lifecycle, before your start-up even sees the light of day. You have your unique business idea and you are ready to get going. But first, you need to assess the viability of your start-up or new project.
Once you’ve put idea your idea together, it’s time to find a team that will help you make it a reality. This will require different approaches and the team’s size will depend on the size of your start-up project. One thing’s for certain, be sure to include an experienced start-up accountant in your team because you’ll need all the help you can get to structure your business in a way that makes it efficient and attractive to potential investors.
Next, put everything down in a business plan because this is what all your decisions will be based on. Include thorough market research in support of your brilliant idea and business plan. Potential investors never make a decision to fund a start-up based on anecdote or ‘gut feel’ – only facts and supporting figures. Your accountant will be able to help you squeeze insights and turnover potential from good market research.
At this stage, you should get advice and opinion as to the potential of your business idea from as many sources as possible: family, friends, business associates and any industry specialists you may have access to. This will help you to refine your idea and build a better product or service. People’s feedback is what you truly need to build something people like and use.
You’re an entrepreneur, you’re passionate, and you’re ready to get started. Just remember to have the foundation in place, including considerations such as your CIPC requirements, accounting procedures, accounting platforms (there are some excellent start-up accounting packages such as Xero and Receipt Bank), and your intellectual property (trademarks, patents, copyright, designs, website).
Ultimately the success of your business will come down to many factors – including your abilities, the readiness of the market and your financial foundation.
If you need more information about how cloud accounting and payment solutions can be adapted to enhance and maximise the success of your business idea, you can book a call or appointment so that we can talk, obligation free, about your business needs, or send us an e-mail.