Where possible reduce risk, maintain flexibility and keep a contingency fund for the unexpected. Here are some examples of how to achieve this practically:
- Do not take on long term commitments: leases, hire purchase…
- Work from home if possible.
- Keep stocks low and rotate.
- Minimum Viable Product or Service to prove market for concept.
- Do not spend money on consultants or branding, do it yourself for now.
- Use generic equipment that can be used for other purposes, do not buy specialist equipment that you will be stuck with on exit.
- Do not take on full time staff, use flexible staff and family and friends.
- Have an exit strategy just in case.
- Monitor cash flow and costs, and ignore people who say businesses have to trade for X before they make a profit. Design to make a profit from day one.
- Do not make any vanity purchases if things go well: cars, premises etc. Remain lean, keen and flexible.
Lew
Developer of Business Plan Quick Builder – great business plan from an easy template and BizzLink – the free landing page generator
Notes
- Inspired by our answer to a Quota question
- Photo by Kelly Sikkema on Unsplash
