There is something exciting and liberating about wanting to start your own business.
The thought of being your own boss, living life on your terms and watching the cash roll in is intoxicating.
Anyone can indeed start a business; however, the skill comes in making the business successful, profitable and sustaining the business over a number of years.
Over 50% of businesses fail within the first 18 months and over 95% of new businesses fail within the first 5 years.
The statistics are real and sobering.
In today’s economy, it is easier than ever to start a business, yet the figures remain the same for failure rates.
In fact, sitting in Singapore and reading the news over the past month, there have been report after report of smaller businesses closing their doors, and calling it a day.
So, what advice can I share with business owners from my experience?
Here are 3 top tips;
1)Cash flow is King.
If you start a business and it’s run from your home and you are a one-man band, then life is certainly easier. Overheads are lower; however, it may not be seen by many as a business which is scalable.
Once you start renting an office, opening a space and employing staff, then cash flow needs careful consideration.
Suddenly you can find yourself needing to make $15,000 - $30,000 + a month simply to “stand still” and pay the bills.
A business needs to ensure it has at least 12 months of cash available to cover its overheads before it begins operation, and at least 6 months on an ongoing basis to cover any eventualities.
Hire staff with the correct skill sets and ones that match the brand.
For any business to succeed, staff are critical. As a business owner, you will need to invest time, energy and effort into getting the correct staff and ensuring they are capable and trained to do their roles.
Great staff bring amazing results.
If staff become a cost and are not adding value to the business, then it’s time to review.
An even worse scenario is that staff become a burden and actually slow the business down, need constant management and do not bring in return on investment.
In this situation, it’s time to make tough decisions and to review how the business is staffed.
Every member of staff needs to understand the return on investment equation and if they are not able to see that they have a role to play in bringing in business, delighting customers, making efficiency improvements or removing the burden from your shoulders, then it’s time to let them go.
Larger companies can carry “extra staff”, however smaller companies soon feel the pinch and need to take action swiftly.
Customers bring success to the business. The more the merrier.
No customers = no business, the equation is that simple.
Listen to your customers and take action on their needs.
What do they want from your business?
What products or services do they need from you?
Identify your top 20 customers and delight them.
Get into the mind-set of your customers.
It is easier to keep existing customers happy than it is to keep having to find new customers.
Customers are the life force of the business, delight them and you will find your business is more smooth sailing.
I hope my top 3 tips have given you some food for thought.
If you have a great business idea then I encourage you to move ahead. Start out with awareness, take correct actions and the success will be yours.
If you want to book one on one business coaching with us at SoulCentre then please drop an e-mail to;
We focus on creating the correct mind-set that brings you results.
SoulCentre Pte. Ltd.