5 THINGS YOU MUST DO when starting a new (design) business…

New businesses start all the time.  It’s great isn’t it?!  Like when you’re best friend has a baby and it’s all new and exciting and fun.  Or when you’re a newly married couple, all loved up, all teeth, all smiles.  We've even got a name for it: ‘the Honeymoon Period’.

The unfortunate fact is that within the first 2 years, 9 out of 10 new businesses will fail.  This is a fact.  But rather than look at why start-ups fail, let’s take a positive view and look at 5 things you should do if setting up a new (design) business:

No.1: Set business goals

Setting goals is perhaps the most important thing you can do when starting out on any new venture, whether it be playing sport, losing weight or starting a business. 

Leadership IQ President Mark Murphy‘s book of the same name, suggests that goals should come with emotional attachments, and I agree.  But not only should they come with emotion, they should be realistic, achievable and measurable. 

If goals are not measurable, you cannot check if you’re on track along the way.  Similarly, if your goals aren’t achievable, they will have the opposite effect of that with which was intended.  So think big, set milestones and track your progress on your way to achieving your business goals!


No.2 Get some ‘on the job experience’ before kicking off

My mother always said, never intentionally leave a job till you have another one lined up.  If you’re looking to start a new design business, then you should ideally have had experience doing some design projects on the side. 

Build some good experience through private jobs, learn how to price small projects, learn how to design quickly and efficiently and start building a client base and network.

It will take time and effort to gain initial experience in your new venture.  Use the cash-flow from your current position to safeguard slow income from your new business.  You won’t get much personal time, but you’ll gain some amazing experience!

No.3 Manage the business cashflow

It's true, cash is king, esepcially these days!  If a new business runs out of cash and cannot meet its debt requirements, the life-blood for the business stops. 

Studies at About.com have shown that insufficient capital, over-investments in fixed assets and poor credit arrangements are some of the main issues facing new businesses.

This is particularly important for design businesses because the way we are paid is usually AFTER the design service has been performed.  That means we need to self-fund from before the appointment until the final service has been performed. 

Don’t underestimate the time it will take to get paid, it is always longer than you think.  If it is sooner, treat it as a bonus, as was once said: Plan for the worst, hope for the best!

No.4 Understand your unique selling point

Belief in yourself and your abilities, and that you are the perfect designer for your clients.  For a new business, especially a design business where clients are relying on design skill and reputation, there needs to be a price point between getting paid for your talent and acknowledging the fact that you are untried and untested. 

The entry point at this stage of pricing new business should be low and your efforts high!  If you are supplementing your new business income with a regular job cash flow, then this is easy to do as your overheads will be minimal.

If you’ve already gone out on your own or running a small business, this can be more challenging, though trust in yourself and watch the time you allocate to various exercises.   Just remember that you have a unique selling point, it can be price, it can be skill, but back yourself, because you won’t make a million dollars in the first year, but do a great job and earn a good reputation and soon you’ll be on your way to a respectable profit.

No.5 Ensure (potential) Clients know how to find you

It sounds fairly common-sense, but if potential clients don’t know where to find you, they can’t give you business.  Think about who your clients are, then work out what they read, whether they are on-line, what social media platforms they use…basically, find out where will they see what you have to publish…then promote yourself.

It sounds kinda self-centered, but if you’re not going to sell yourself, then who is?  But please just promise me one thing: no spam!  It annoys people and drives business away.

Have something worthwhile to say, something meaningful, something of interest that your clients might like to know or learn.   It will ensure they come back for more.

If you follow the above, it won’t answer all your challenges of starting a new (design) business, but it will certainly put you in the right frame of mind.  Let me know how it goes....