The admin blueprint: Laying strong foundations for growth from day one

You've got a great idea for a product or service. You're convinced it satisfies needs or wants in the marketplaces which aren't already being met by other products/services out there.

You know the price at which you can offer your product or service is very competitive and that, once sales reach a certain level, your gross profit will be enough to cover all costs and leave an acceptable profit.

You have a great answer to the question "Why should potential customers buy from you?"

So you've got it all figured out, right? What could possibly go wrong?

The need for strong admin foundations

Well, for starters, a great product or service alone doesn't guarantee success. You must make sure you have strong administrative foundations in place to support your business.

Many business start-ups underestimate, or are unaware of, the sheer depth and range of resources they'll need to ensure their business:

• gets off the ground

• can hang on in there long enough to get established and start turning a profit

Here are some things to think about to make sure you're as prepared as you possibly can be for the exciting journey ahead of you.

How to prepare for your business's future

Access to capital

You may think you have enough start-up capital to cover you setting up and launching your new business and to keep you going until you start making a profit.

Hopefully, you've made realistic profit and loss and cash flow projections to support that view.

However, even with the best laid plans, things can go wrong, unexpected costs do arise and it takes longer than you thought to reach break-even point and start making a profit. You need a contingency plan in case you need more money than you have, or have budgeted for.

Logistics

This covers the flow of goods or services from the point of origin – which could well be overseas – through all intermediary points to the point of consumption. That needs thinking through and managing.

Cash flow

This covers the flow of money into and out of your business and is one of the most critical aspects of running a business.

You can theoretically be making a profit and still get into deep trouble if you don't understand and carefully monitor your cash flow on a very regular basis.

Marketing

You should already have a very clear idea of how to introduce and promote your product or service to the marketplace. This often requires consistent administrative support.

Compliance

We live in an increasingly regulated world. It's essential that you are clear on any compliance regulations affecting your product or service and make sure they're covered.

Customer service

Businesses stand or fall by the quality and reliability of their customer service. It's a time-consuming and essential element of any successful business.

Other services you might need – and where to find them

You may well need office space and warehousing. Depending on the nature of the product or service you sell, you could require purchasing, import/export and shipping services – all of which demand their own expertise, including knowledge of international customs and tariff regimes.

You'll certainly need sales office admin, order processing and invoicing systems, bookkeeping and accounts and debt collection, all of which require specific skills.

It's a daunting prospect and you may start to wonder how on earth you'll be able to provide all this support. Where will the expertise come from and how will you possibly find the time to cover all these things?

Partnering with an experienced business support provider

Many entrepreneurs are discovering a new approach – partnering with an experienced business support provider.

Instead of struggling to piece everything together alone, they can access all those resources, including funding and even mentorship, under one roof.

How does this work? Depending on the party you choose to work with, this could involve giving a modest-equity share in your business.

This gives them some "skin in the game" and a real incentive to get behind you and help you launch and fast-track your growth while sharing in your business's long-term success.

In some cases, the partner would retain the equity only until you feel ready to fly the nest and go it alone.

To summarise, the partnership model may be worth exploring if you:

• have a great idea for a product or service but realise you may lack some of the resources and expertise needed to sustain and grow the business

• feel your business could benefit from the operational support, and you from the business mentorship

• are open to a collaboration in return for a small and returnable equity share

How I can help

I've only been able to touch the surface of these themes in this short blog.

If you'd like to discuss them further, please feel free to contact me, with no obligation whatsoever, by connecting with me on Enterprise Nation, by phone on +44 (0)1708 688652 or by email at gd@mtdgroup.co.uk.