What makes new start businesses succeed?

IP2 · #11 (**permalink**) 12-05-2008, 21:33

Quote:

Originally Posted by RedEvo

Realistic pricing is very important. I think many new businesses don't factor in the true cost of delivering their services. Then, when their savings run out their businesses go pop.

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Totally true RedEvo, one of the things I certainly have found the most problematic in new companies is under selling themselves, someone starting out on their own can easily make the mistake of believing they only need to take "x" per week to keep things a float, so they under price.

I think under pricing can take a year to catch up with a new enterprise and at first they do feel they are making great grounds, but reality ultimately hits.

If you are starting a new venture, it is worth taking the time to really cost out how much you need to charge and how much your overheads are going to be...be it from asking on this forum, or taking advise from an experienced business advisor. The figures may surprise you!

RedEvo · #12 (**permalink**) 12-05-2008, 21:42

I often point people at this simple explanation of day rates

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RayB · #13 (**permalink**) 12-05-2008, 21:53

With me, I looked at the market, how "they" did it, and did the opposite............usp or no dice IMO

MarkTaylor68 · #14 (**permalink**) 16-05-2008, 22:12

To answer Indizine's question... I have started and sold on 3 businesses and am currently behind 2 start ups. I would add that I have spent 6 years managing business start up advisors and have an academic track record in entrepreneurship study and research. I guess it's my life's work to help entrepreneurs succeed.

MarkTaylor68 · #15 (**permalink**) 16-05-2008, 22:13

BTW... does anyone know the original source of the 2% statistic? - I've seen this quoted a few times but am not sure where the actual data comes from. M.

Alvin · #16 (**permalink**) 16-05-2008, 22:24

Well call me simple but the right product with the right profit margin does it for me.

Never had a plan in my life ( not quite true as my SEO is pretty well planned),just got a nose for a good proposition.

Alvin

Indizine · #17 (**permalink**) 16-05-2008, 22:42

it's more than 2% these days, but id have to dig for the figures; these days im not reuqired to have to remember the stats! I do know that only 3% of the UK choose to run a business though! That makes us kinda unique!!