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Secrets of Success: The One Question Your Business Must Be Able To Answer

26 August 2016

It’s no secret that starting a successful business is a challenge. Half of all UK start-ups fold within their first five years. But don’t fret, it gets more optimistic from here on!

Businesses fold for a number of reasons. A business might experience cash flow problems, a change in the market, or lose out to their competitors – these are all looming spectres that haunt the majority of businesses at some point during their existence. However, many new businesses are at risk from something far simpler, and it’s something that can be easily solved.

The importance of long-term vision

Getting caught up in everyday tasks is a common problem that stops many entrepreneurs from focusing on the long-term goals of their business. Founder of Amazon, Jeff Bezos, works to a seven year plan with Amazon. He believes that seven years of forward planning gives a business a lot more scope for engaging in endeavours that otherwise wouldn’t be pursued if a business was only forward planning for three years.

Having long-term vision doesn’t mean you need to be as forward thinking and visionary as entrepreneurs such as Jeff Bezos and Henry Ford, but a clear and exciting vision for your business is definitely the pathway to success.

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In five years’ time, where do you want your business to be?

It’s a simple question, but one that a lot of start-ups may not have considered. The answer to this question is important for two reasons. The first is for you and your business. When you’ve thought through the answer to this question, you should start to get an idea of the path that needs to be taken in order to reach where your vision has placed your business in five years’ time. You may find that you need to make some changes right now in order to stay on track and that forward thinking has saved you from working day to day, without thinking about where your business is really heading.

The second reason the answer to this question is important is that investors will want to know your company’s vision. They’ll want to know ‘where is your business going?’ and ‘what is its potential?’ If you’ve thought ahead five years, you should be able to give them a great answer.

Take the next step

The next step is to break down your five year goal. You will need to work out what you have to do in order to achieve it year by year. After you’ve done that, plan what needs to be done in the next twelve months in order for you to hit your one year target.

When that’s done, start working on it right away and transform your start-up into the business success story it deserves to be.

Thinking about forming a company?

If you’ve been inspired to start a business, forming a company is one of the first steps along the way to success. At eformations, we offer an online company formation service that will enable you to

form your company in just a few hours. You can find out more about our online company formation service here! Alternatively, why not visit our website to find out about our other business services, or give us a call for a friendly chat on 0208 232 5479?