Starting up your own business can be an extremely daunting task. Getting it up and running is a huge gamble as if the business fails the lcost to you is often high in terms of lost investment of your time and money. Twenty per cent of businesses fail in their first year, and an additional thirty per cent will fold before they reach three years old. Make sure you know what the biggest pit falls are so you can avoid your own business becoming part of this statistic.

Be realistic about the potential profit your business will make in its early stages. Optimism is a good quality, and often necessary if you are to have the determination needed to see you business idea through. But over optimism about the size of your market or popularity of your new product can tempt you to overspend on materials, manpower and other expenditures which may not be necessary until your business has become more established.

Do not become so introspective about setting up your business that you take your eye off the competition. Check advertising, press releases, websites and trade fairs to see how your new business can compare to existing competitors and discover where you can find a niche. Remember, it is not just companies similar to your own which you need to keep an eye on. It is essential to also look at businesses or opportunities that offer new and exciting services which could make the need for your products or services obsolete or, at the very least, decrease your market.

It should be one of your first considerations when setting up a business, but many entrepreneurs fail each year because of lack of capital. Make sure you have a top notch business plan so you can secure sufficient funding from investors. It is also extremely important that you have a contingency plan and money set aside for the unforeseen costs which nearly always arise.

If you are selling a product, one of your priorities should be to assess the quality and reliability of your supplier. Run a credit check on them so you can be certain they are not about to go into liquidation. It should also go without saying that you should thoroughly research other potential suppliers to ensure they are giving you a good deal – the higher the cost of your supplier, the less profit your business is going to make.

If you have taken heed of all the above, your next big consideration is how to employ the right staff. You may have a watertight budget, a successful business plan and a high quality supplier, but if you have incompetent staff then your business may never get off the ground. Not only will ‘behind the scenes’ operations suffer from poor staffing, customers will be turned off by inadequate staff.

If you start your own business, you are likely to be in for an extremely stressful and exhausting first year, but it will pay dividends financially and in your personal satisfaction in the long term. With a willingness to show the dedication needed and the knowledge of what makes a good business, you will be much more likely to be a great success in your new venture.