Start-up fundamentals for a business

Here are my top tips for anyone interested in starting a business.

Characteristics of a successful entrepreneur:

1. Has a vision about how to meet a market or community need and that vision is based on solid research and experience;
2. Is goal-orientated and able to define success;
3. Has the experience, ability and skills to develop an actionable business plan based on research and facts. The plan requires a good governance model to monitor the results and the ability to be flexible in altering the course as needed;
4. Seeks and heeds advice from experienced entrepreneurs. Most failures occur when an entrepreneur allows his ego to override best business practices;
5. Has years of experience in the field s/he is entering or seeks partners to provide needed expertise;
6. Focuses on marketing and administrative needs as his/her prime needs;
7. Is focused, persistent, risk orientated and has the ability to manage an organization, and primarily people.

Reasons why people should launch a start-up:

1. The prime reason to launch a start-up is if there is a market need that no one is fulfilling;
2. The secondary reason is if you are unable to attain your full potential for success in an existing business or environment, and cannot fulfill your personal goals of self-satisfaction and achievement;
3. The right time to launch a start-up is today if you have fulfilled the requirements of experience, intense research and consultation with experienced business people and others such as bankers, government etc.

Important trends in business:

1. The most important current business trend is rapid change and therefore a plan must be firstly diversified to avoid reliance on a  single strategy or product, and must include information systems that rapidly report arising issues, and management that recognizes these changes and are quick to react;
2. Current business relies much more heavily on the internet for marketing and for sourcing. A business is now becoming a worldwide entity not relying on its geographical location for resources to buy, sell, finance and employ people.

By Sidney Halpern, FCA, Chartered Accountant, Winnipeg, MB, CYBF mentor, shalpern@shaw.ca