Nick Richards on the biggest mistake business owners make...
“Planning. I guess it comes down to a lack of planning, which involves a lot mistakes that subsequently are made because of a lack of planning. Prevention is so much better than the cure.
Prevention is so much better than the cure
“You can avoid making a lot of mistakes by just thinking through how your business is going to go, how much money you need to cover your costs, what your margins are going to be, etc.
“Most people, when they start a business, just don’t think those things through, and if they do try to think it through they’re not realistic about it.”
On the obstacles when starting a business...
“I don’t think there are any obstacles to starting a business. I think anyone can go out and start a business – you don’t necessarily need a lot of cash.
“Obviously, it depends on the type of business you’re starting. If you’re going to buy a hotel or a factory then you need access to a lot of cash.
“But a lot of small businesses can be started with little capital. If someone wants to raise cash to start a business there are ways of doing it, but you have to put a business plan together.
“The reality is when most businesses go to the bank to borrow money, they don’t bring a compelling argument as to why the bank should lend the money. If the business idea is good enough, the figures add up and it sounds realistic, then why wouldn’t the bank or an investor lend the money?”
On the lessons of hindsight...
“I started with a ‘do it yourself’ website, which cost £60 and was a load of rubbish. I then had to pay someone to do me a proper website.
“Probably realising that networking was the best way of finding clients, it took me a little while to realise that the other things I was doing weren’t as effective as just going out there and shaking hands with people.
“Also, trying to use other people’s contacts and doing some reciprocal things. For example, I work with accountants and I get them clients and they do the same for me.”
