Protect Your Startup
- Date Listed29/09/2019
A recent New Paper (26 Oct 2018 - Pg 30) article reported the following:
There were 61,876 Singapore startups in 2018. According to governmental records, 50% of startups will fail within 3 years. Many of these failed entrepreneurs will end up heavily indebted. Financial recovery may take years for many.
As for those 5% of startups who eventually survived beyond 5 years, will they succeed? Would you consider a business successful if it is simply staying afloat and not growing in sales or profit because of the small market size? I doubt you will. As captain of your ship, three very expensive assets are frozen in space and time:
(i) the people on board
(ii) the resources employed to keep the ship afloat
(iii) the ship itself
These three valuable assets are trapped at a point where no one knows why they exist, what they are doing, and where they are going. It is like a ghost ship!
WHAT POTENTIAL STARTUPS CAN DO
There are two authentic and proven ways you can reduce unnecessary risk, avoid a financial catastrophe and improve your chances of success.
You should always, without fail, take any of these steps to prevent yourself from becoming financially crippled or becoming trapped in a business you cannot get out. These are:
1. Conduct a Business Viability Audit
This is a quick audit that will help you identify the "big picture" risks your startup will be exposed to. From this list, you will have a clear idea of the challenges facing your enterprise and what resources, skills and level of finances that will be required to address these challenges.
You will be able to understand your own weaknesses, fine-tune your approach, improve your capabilities and create a stronger positioning in the marketplace, thus reducing your risk of failure.
These are massive advantages that will contribute greatly to your success.
Each audit is customised according to your industry, business model, customer group, etc.
2. Develop a Business Growth Plan
A business plan is essentially a growth plan but from interactions with clients all these years, we can attest that most entrepreneurs don't really understand its purpose. A real business plan is actually a compass for the enterprise - it is the captain's navigation tool that enables him to see through the fog of uncertainty.
A business plan is a tool that manages investment and business risks by charting out the journey according to a vision and projection of the business environment (the "fog"). Every stakeholder will be able to "see" clearly the business environment, the ship's destination and how it will circumvent the risks in its journey. The clearer one can see through the fog, the lesser the risk in the journey. And as captain, you need this confidence to go forward.
So, risks can be reduced drastically to protect your investment with a:
- Business Viability Audit; or a
- 3 to 5 Year Business Growth Plan
Depending on your budget, either will help you mitigate your risks. The Business Viability Audit will identify major risks and prevent you from jumping into something blindly. The Business Growth Plan goes further to recommend measures to address the identified risks. The plan will become your indispensable Risk Management tool. It will be the captain‘s compass and your ship's dashboard along its 3 to 5 year journey.
To find out how we can help you with the above risk reduction option(s), please contact us or visit our web site here to view our professional services: