LOVE YOUR BUSINESS IN 2019

– LOVE STARTING A BUSINESS IN 2019

Every January some of us will decide to ditch the ‘day job’ and start a business across the Globe. In the UK alone in 2018 466,00 New businesses started though by Dec 2019 less than 50% will survive! It's often said that more than half of new businesses fail during the first year. According to the Small Business Association (SBA), this isn't necessarily true. The SBA states that only 30% of new businesses fail during the first two years of being open, 50% during the first five years and 66% during the first 10.

So, what should you do to make sure you survive and scale up to grow?

I started www.gateway2enterprise.co.uk in May 2014 and I was one of the first in the UK and as a female founder to start a Fintech online alternative finance platform. There were only two others at that time, and one did not make it and ABF the other is the largest in the UK. As this market became too saturated and the main Banks backed our competitors I knew our pockets where not that deep. So as we saw our ‘deal flow’ go down in 2014 from 52 leads a week to 5 we decided to outsource our Alternative Finance to https://www.alternativebusinessfunding.co.uk/ which was one of our first Partners and always completely supportive so using their technology we pass over our leads to them for Alternative Finance and we only keep one Finance Consultant Steve who handles all DEBT/Loan Invoice Financing and JV deals.

So in 2016 as we where mainly working on equity deals we decided to become an Investment Hub https://www.gateway2enterprise.co.uk/investment-hub/ We now have over 40000 Investors within your Network and around 50000 Members.

So, the hard lesson we learnt here was when to ‘get out’ diversify and follow your competitors and learn how to be Unique and have many USP’s. We also closed two offices and decided not to have any permanent members of staff and now outsource all roles thus cutting down on costs. Creating a ‘LEAN’ model of our business’

TOP TIPS TO SURVIVE IN YEAR ONE

Do your RESEARCH – I read every morning online mainly LinkedIn

Be REALISTIC – don’t think you will go from 0 in month one to 1m in year one

Engage with a Mentor or several – I have two Mentors who have been there

Educate yourself – read – learn more about your industry – I am still learning

Preparation and Structure – look at the skills of your Team to fit your culture and business model

Keep an eye on new entrants to your market – competitors know them

CASH FLOW IS KING – unrealistic re your Growth – not keeping a keen eye on your money – check your accounts daily and chase your payments

Financial Planning – costs and outgoings and your Pricing of your service/product

REPORT 2018

Here is a Report to support the above and help you stay in the game. https://www.enterpriseresearch.ac.uk/wp-content/uploads/2018/06/SSBB-Report-2018-final.pdf

There were 5.7 million SMEs in the UK in 2018, which was over 99% of all businesses. Micro-businesses have 0-9 employees. There were 5.4 million micro- businesses in the UK in 2018, accounting for 96% of all businesses. We have now become a Mico business as we outsource all roles.

Though, 26 Jan 2018 - The number of British businesses collapsing into bankruptcy hit a four-year high ... 26 January 2018 ? 1:14pm ... Official figures released on Friday show that 17,243 companies entered ... month, becoming the UK's biggest corporate failure in a decade and putting the construction sector under further strain.

HOW TO AVOID BEING ONE OF THE FAILURES IN JANUARY 20120

1.   Don’t start a business because you want a lot of money – it is about your passion and I get up by 5am every morning and cannot wait to start my day.

2.   Your product/service does fill a gap in the market

3.   Drive and resilience will stop you from throwing in the towel but know when to quit

4.   Build upon your failures – I have had many failures and successes over the years, and it will never stop me from trying.

5.   You thrive on having your independence and like to take control of your own destiny, but can you work solo to prioritise your day.

6.   Integrity to remain in your industry

7.   Do you like People? – Dealing with all types of people is a skill

8.   Poor management – are you a great Leader and Manager? Need to be both

9.   Enough funds for at least 6 months to prove your concept

10. Location – where are your customers located

11. Don’t grow too fast thus not meeting the demand will lose customers

12. Great website and Social Media presence – I spend 4 hours a day on LinkedIn

I start my day with researching and reading and Forbes is one of my favourites https://www.forbes.com/sites/ericwagner/2013/09/12/five-reasons-8-out-of-10-businesses-fail/#7bffdeb56978

Some HOT TIPS from someone I have worked for and worked with the Richard Branson to become a GREAT Entrepreneur https://www.entrepreneur.com/amphtml/275374

If you wish to follow up with me please email me [email protected] I would be happy to answer any of your questions and make sure you JOIN as a Free MEMBER our resource tool platform for starting and growing a business www.gateway2enterprise.co.uk

Karen Melonie Gould

www.gateway2enterprise.co.uk