There is never a bad time to start your own business,but the biggest mistake budding entrepreneurs can make is hiring the wrong people, says Amanda Line, the regional director of the chartered accountants association ICAEW.
1 Know your business
Entrepreneurs must understand their market. "I also think that you are likely to be more successful if you set up a business doing something you know, where you understand the product or service," says Ms Line.
2 Get the right people
"The biggest mistake a business can make is cutting costs and not getting the right people," she says. It may be tempting to get everything as cheaply as you can, but new business owners must get the best people they can afford. "The other thing is to be really realistic about the key skills that you have and look to find people with complementary skills," she adds.
3 Sort out your finance
The second-biggest killer of a business is not having enough money at the outset, says Ms Line. "People always underestimate the amount of money you need to start a business, which immediately limits your options," she adds.
4 Proper planning
You need at least a three-year plan, she says. This will be required by banks and other providers of capital, and it will also help with pricingin the future.
5 Data, data, data
Entrepreneurs should look at the numbers every day. "It's easy to get carried away selling your product and not paying any attention to, for example, your margins," she says.
