Recipe for business success

A good idea is no guarantee of a viable business. But an existing set-up’s big selling point should always be as the vehicle for the next entrepreneur’s grand plan.

Recipe for business success

It appears that many people still believe that the recipe for business success is as simple as adding money to a good idea. It is a misconception that continues to see people sinking time and money into the development of new businesses, many of which never open their doors to the customer, and for those that do, the majority will be out of business within two years.

For would-be business owners, there is no doubt buying a business is much more likely to yield success. Of course this is not guaranteed, as even a good business can be destroyed through poor management. However as a general rule of thumb, the vast majority of existing businesses continue to succeed under their new ownership. So why is it that new business owners continue to punt on the long shot rather than the near certainty?

Part of this is would be the passion people have for their “good idea” which drives them on in the same way hormones send the salmon upstream. This single minded dedication often blinds them to alternate paths to their ultimate goal. One of the key things missing in this approach is focus on the idea (usually a product or service) at the expense of the business issues surrounding it.

A far more potent recipe for success is to have an existing business and then add a related good idea and some money. The existing business brings with it many of the required ingredients that the person with the good idea may have forgotten to include. Things like internal processes, staff, cash-flow, customers and suppliers. The other important ingredient in the recipe is you – so look for a business that provides all of the ingredients that you need so that you can simply add yourself and some money for instant business success.

Andrew Kent is a director of BizExchange, an independent marketplace for business for sale or seeking investment. BizExchange has a directory of independent advisers and business brokers and information on valuations

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