Get Real About Your Business, the Role or a Business Mentor
Realism is key when building plans for your business and, indeed your life, whether it's an Angel Investment deck or a business plan.
Did you know that only 4% of UK companies achieve annual sales of £1 million or over? Less than 0.4% of UK companies ever reach annual sales of £20 million or more. 40% of start-ups cease trading in the first three years, whilst 60% of start-ups go bust in the first five years. Whilst it's important to follow your passion, it's equally important to know the risk-reward ratio of the decision.
One of my most important jobs as a business advisor/mentor is making sure decisions are fact-based and challenging the founder's ideas and market vision because a realistic stress test will make for better decisions and a higher success rate. I did a successful start-up and exited, but I knew the risks and planned accordingly.
Starting with a clear understanding of the probability of success, the major challenges and possible strategies are key. Usually, there are several ways to achieve the same goal, whether personal or business, many of which may have a different risk profile. Testing the different possibilities and scenarios is best done with someone, such as a business mentor or advisor, who has been through the process successfully and can be dispassionate in challenging your vision is a vital stage to improving your odds of success. #businessplanning#businessadvice#business#mentoring