As we enter an era defined by spending cuts, it is difficult to imagine how the budding entrepreneur or small business owner can feel inspired enough to turn an innovative idea into reality. There are certain key components to setting up a business to ensure it grows successfully.

To start your own business from scratch is undoubtedly incredibly risky but from my own experience it can certainly be satisfying. There is no secret formula guaranteeing success however, and you need only look to the last two years to see how some of the biggest businesses have really suffered due to unpredictable circumstances.

Be clear and be thorough
To stand the greatest chance of success you need to be clear on your company proposition. The proposition rarely remains the same from the outset but will always constitute some part of your core offering. It is therefore essential that you undertake substantial research into the market you are aiming to succeed in and, more, importantly undergo this research on a regular basis to stay ahead of the competition.

This stage can be a lonely experience and you can become somewhat disillusioned as you may begin to forgo some of your original intentions or ideas to maintain your business operations. It is essential at all times to remember to ‘stick to what you know best' your first raison d'etre. After the initial euphoria of the company creation, getting your first customers and actually being ‘in business', there will undoubtedly be some difficulties as things move quickly.

Expand your expertise and be ready to change
Needless to say, whether your idea or proposition is in high demand, it is imperative that you start your own business in an area in which you have some expertise or knowledge. This does not necessarily have to exceed your competitors' expertise, as the main area where you can really gain competitive advantage is in your ability (as an SME) to be flexible. With lower fixed costs, you are able to react quickly to market conditions and adaptable in the way you approach clients.

As you see your venture take off and you start to reap the benefits of your efforts, you can begin to invest back into your business. I believe the best investment to be the people as this will be the key to your success. Be selective and ensure you recruit the best. When recruiting the best, you want to ensure that you have a positive working environment to ensure they stay. So consider everything from flexible working hours to flexible benefits packages. Even the small added extras such as team building days, on site massages, and my personal favourite, pizza and Wii lunches are popular ideas to ensure your team continues to feel appreciated. Lastly, recognise your team's strengths and delegate activities where possible, in order to free your own time to focus on growth.

Needless to say...
With a great proposition both internally in the workplace and externally to clients, attracting a talented team is certainly easier. It is important to ensure you remain on top of the things that seem like common sense to guarantee growth. Ensure your business has a steady cash flow and pipeline of business. Although easier said than done, as unpredictable conditions can leave most high and dry, it is important to always prepare for the worst.
By securing regular work coupled with ad hoc projects, you will be prepared when and if clients have to pull their business due to budget constraints. To reiterate my earlier point, here is when you need to become adaptable. Whilst accommodating for loyal clients, it is also important to continually seek new ones. Delegating activities to your team will leave you free to look for new business and ensure your pipeline remains full.

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