We’ve all sat in the house or at work and had that “eureka!” moment, what you want to do in life, what your calling is, but there are many things to consider when thinking about starting your own business.
Starting a new business is the ultimate aim for those independent spirits out
there. It is the chance to solidify any expertise you’ve developed, and the
phenomenon of transforming a unique idea into something successful, popular and
financially rewarding is enriching in many more ways than one.
On the other hand, seeing that wonderful idea transformed several years later
into bankruptcy and failure can be demoralising and embarrassing. So what marks
out the difference between success and failure?
A gamble on the wild side?
Certainly the idea has to be good and be something simple that is either
missing, or which you firmly believe can be done better. Generally that is a
rule that most entrepreneurs and investors would be adamant on.
However there are examples where economic and organisational genius have made
the most outlandish ideas flourish. There’s a gizmo that involves two coconuts,
attached via cogs to the cogs and chain on a bicycle. When the bike moves, the
coconuts bang together creating the sound of a trotting horse. This is possibly
the most ridiculous creation on the planet. Completely unnecessary to cyclists
and generally a downright nuisance. But somehow they sold and the man made
rather a lot of money. This is an extreme example of when business acumen can
make give birth to success for the most ridiculous concepts.
Safer bets
However, narrowing down to the less ridiculous, here are two examples of
companies that have not reinvented the wheel. They started their businesses
working on unoriginal concepts. There were already plenty of sandwich shops and
plenty of removal companies but both companies, Pret A Manger and Ward-Thomas Removals had
a clear idea of exactly what was missing in those markets.
It wasn’t solar powered trucks or Viagra in the wraps. For both it was care
and quality. For Pret it was healthy food, fresh ingredients and a quality
service that has since become the mantra for all new sandwich shops. For
Ward-Thomas Removals it was trust, efficiency and care. Both very simple.
Pret A Manger was started by two men of different skills, Julian Metcalf with
the creative flare and Sinclair Beecham with the economic and financial eye.
Both were able to balance off the other and the business steadily grew from
something very small and inexpensive into the ever-developing empire that lines
our streets now.
Ward-Thomas Removals was started by one
man, Anthony Ward-Thomas. While there was no shortage of home removals companies
in London and an absolute abundance of perfectly secure storage facilities,
Anthony felt strongly that there was a distinct lack of quality and trust
available, and that was his selling point.
Sound principles
So these two are businesses that have flourished. Their work-forces are
plentiful but not oversupplied, which is part of their secret.
A lot of companies overfill their
offices to avoid stress or overwork but, in actual fact, those extra people are
completely unnecessary. Aussie Man and Van
was an example of a removal company that failed simply because it was badly
managed. A main factor of this bad management was its gross over-staffing.
Aussie Man and Van had a great brand that people loved but the simple act of
over-staffing was its downfall. So when it was bought out by Ward-Thomas
Removals, half the staff was removed and now it is doing quite nicely.
The secrets to success in starting a new business are endless and can fill
many books, and do. The main tool available is other businesses, watching them,
gauging their success or failure and investigating the reasons.
