Rules to help bring success

Jun 20 2007 by Tony McDonough, Liverpool Daily Post

1. ENSURE your business start-up has enough cash and financial resources to see out the first year of trading.

2. If you need to give up an equity stake in your business in order to have sufficient financial resources, ensure you give away as little equity as possible.

3. Choose your business partners very carefully and unless they can make a real difference to the business, engage them as employees or consultants only, rather than make them shareholder employees on day one.

4. Try to avoid personal guarantees to the landlord of any premises or any bank.

5. Use a private limited company structure, rather than starting as a partnership or sole trader business.

6. Ensure you receive help from a good accountant or book-keeper so that you are aware at regular intervals, at least every three months, as to exactly what your financial position is.

7. Prepare an annual budget to ensure you can monitor performance.

8. Remember, there are very few businesses that fail due to having too many sales. The problem of over-trading is easier to solve than not having enough sales.

9. Ensure you have the support of your spouse/ partner as support from home is essential.

10. Hard work on its own does not guarantee success.