10 Common UK Start Up Misconceptions
HOME / / 10 Common UK Start Up Misconceptions
Preparing to get your start-up off the ground? Read the most common misconceptions below.
1. Growth is linear
This is one of those things most of us would agree with when talking about any other business than our own. Entrepreneurs tend to be perfectionists – at least, to some degree – and seeing those routine plateaus and ebbs can feel like a bell of doom for the business.
Growth is great, but just because you reach x milestone one month, doesn’t necessarily mean you’ll find it easy to reach the next. Look at the bigger picture.
2. Scalability is the same as growth
Successful start-ups need to be prepared to scale up to meet a growing demand for their products or services, but that’s not the same thing as growing the business. Taking on more employees, larger premises, and committing to heftier deals with suppliers is a risky decision to make when you’re still new. Look at effective ways to make a business scalable instead of growing it with every new bit of business you take on.
Are you looking to scale up, improve performance and accelerate growth?
Our sister company Smarta works with company founders and their management teams to realise their business goals.
Our Growth Experts are experienced entrepreneurs who have founded and scaled companies over the last 30 years. We have had both successes and failures but one thing is for sure, we have learned a huge amount along the way.
Go for growth
3. A USP is all you need
A unique business idea that fills a gap in your market is key, but it doesn’t mean you’ll take off overnight. Just because nobody else is doing what you’re doing doesn’t mean you can afford to rest on your laurels and wait for the people to come to you.
4. You need to build a big workforce
Taking on more employees can feel very validating for an SME; it’s a sign that you’re growing, and it can feel very rewarding to start growing that company culture. But higher revenue doesn’t mean you instantly need to invest it into your operating expenses. Don’t shoulder all the workload if you can afford to take on another pair of hands, but don’t hire for the sake of it.
Look to outsource key roles that require expertise and experience. IT security, for instance, doesn’t need to be done in-house. Reliable corporate solicitors can be kept on a retainer, rather than hired as employees of a brand new business.
The people in your business - whether it's just you, or you and a thousand others - are critical in its success.
From recruiting and employing them, managing them and upskilling, take a look at our free resources to make sure you're getting the most from your team.
5. It’s all about new business
Start-ups can be very focused on acquiring new business but to the detriment of their existing customer base. The most financially rewarding customers tend to be your regulars, not your new customers. True, you should always be aiming to grow your customer base, but don’t forget about retention.
6. Investors will find you
Securing investment is often key for new start-ups, but a lot of entrepreneurs make the mistake of thinking that, with time and hard graft, the right investors will come upon them – rather than the other way around.
True, it happens – sometimes. But it’s far better to be proactive and start looking to secure investment rather than sitting pretty for that life-changing email.
7. Your business model shouldn’t change
It’s not a sign of failure to adapt your business model as time goes by. Inflexibility can be the death of new businesses, so remain adaptable and avoid being too rigid about your plans for the near- and distant future.
8. Every waking hour is a working hour
Entrepreneurs are at a serious risk of burning out and being incapable of maintaining business continuity if they treat life as one constant rat race. Focus on your personal life too – on staying healthy, getting enough sleep, and avoiding that mental brick wall.
Just because your “team” is just you right now, you don’t have to feel alone in times of stress.
As the founder of a fledgling company, it’s tempting to invest every waking minute into starting, running and growing your business. But this can result in both psychological stress and physical symptoms (from eye strain to sleep issues), and in the long run, prioritising your health will set your business up for greater success.
Read our stress-busting tips for sole traders
9. It’s all or nothing
Try not to see your business’s success as a black-or-white situation. Again, ebbs come with the flows; a bad month is not a bad business; a lost opportunity doesn’t preclude you from embracing the next one.
10. Everything happens on a timeline
If there were a standard timeline for business success, life would be a lot easier – but it’s just not the case. Take things as they come, keep your eyes on the prize, and allow a certain amount of organicity to define your business’s growth.
"We’re delighted to be the 2000th loan recipients!"