Starting a business is a good thing, but success is not always guaranteed.
In June 2016, Niall McGarry, founder of Maximum Media expressed his frustration about Ireland’s startup culture and the notion that just because a new company raises money, it is seen as a success.
“Startups: Getting funding is not success! Success is attained through proving your business model by achieving sustainable profitability,” he said on Twitter.
He went on to warn that new companies shouldn’t ‘celebrate’ raising funds because raising money is not proof of a business model.
“People should look to create a business not a startup,” he declared.
McGarry, himself a successful business person, is, of course, correct.
Eleanor McEvoy, CEO of Budget Energy Northern Ireland says that success in business is all about the balance sheet, it’s about making money and having sustainable cash flow.
“You have to remember that success in business is all the bottom line. It’s about making money, not feeding your self-image. If it’s ego you are after, you’d be better off doing something else.”
While running a business can be rewarding, for most, it is an experience fraught with threats. A new business is most vulnerable during its first few years of growing pains.
Below are five ways to give your business the best chance of growth.
Choose your partner (s) carefully
It’s a good idea to go into business with another person. If they are your friend or a family member, make sure everyone knows what’s involved and what could happen before you start. Many businesses have been started by siblings, and many families have ‘rifts’ as a result.
Sign an agreement that sets out the rights and obligations of each partner. You may trust your business partner at the start, but things can change quite quickly as the firm either starts making money or losing money.
READ MORE: Hire the right people.
Set a vision
What
