1. Objectives of a New Business

2. A common misconception
That every start-up has ambition to turn into a large, successful business...
2011
Est 2002

3. A new business will have a variety of objectives
But look at the data
4.5 million registered businesses in the UK
3.3m have no staff
Only 6,000 have more than 250 staff
Does size matter?
A new business will have a variety of objectives
Objectives
Aims
&
Part-time businesses
Social enterprises
Lifestyle businesses
Ambitious businesses
Source: The Department for Business, Enterprise and Regulatory Reform,
Small and Medium-sized Enterprise (SME) Statistics for the UK 2006.

4. Common objectives of start-ups
Financial
Capital gains
Making a living
Personal
Proving people wrong
Gaining control
Building something
Social
Giving something back

5. “Lifestyle” businesses
Businesses run to provide a satisfactory living
Not ambitious – happy to “tick over”
Low stress? (possibly)
Low finance requirement
Lower profits and returns
But still have a high “failure” rate

6. Part-time businesses A great way to learn about running a business
Don’t have to give up the “day job”
Works well for:
Mail order
eBay
Consultants
Other home-based businesses

7. Social Enterprises Trade in goods or services for a social purpose
The Triple Bottom Line:
Financial (surplus)
Social aims
Environmental action
Surplus goes towards one or more social aims

8. Ambitious businesses The traditional business start-up
Aims for growth (sales + profits)
Takes careful planning, money and energy
Bigger risks + bigger returns
Easier to raise money
Dominates the life of the entrepreneur

9. Aiming for survival
Start-ups with ambitions to become big businesses first have to achieve survival
Requires:
Enough cash
Reaching break-even (i.e. total sales cover total costs)

10. Some non-financial objectives of an entrepreneur (1)
More control over working life – want to choose what kind of work is done
Need a more flexible and convenient work schedule, including being able to work from or close to home
Feel that skills are being wasted and that potential is not being fulfilled
Want to escape an uninteresting job or career
A desire to pursue an interest or hobby

11. Some non-financial objectives of an entrepreneur (2)
Fed up with being told what to do – want to be the boss!
Want the feeling of personal satisfaction from building a business
Want a greater share of the rewards from the effort being put in – compared with simply being paid by an employer
Fed up with working in a business hierarchy or bureaucratic organisation (people with entrepreneurial characteristics often feel stifled working and having to co-exist with others!

12. What it takes to succeed
A profitable business idea
Customer demand = enough sales
Well executed idea
Entrepreneurial characteristics
Passion & commitment
Resilience & energy
Risk-taking & initiative
Multitasking
Hard work & lots of luck

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