Martin Lewis offers three clues on how to turn an idea into a multi-million pound business | Personal Finance | Finance
After becoming the nation’s most trusted financial guru, someone who successive Chancellors of the Exchequer have turned to for advice, Mr Lewis has now turned his attention to advising the people who want to set up small businesses and dream of emulating his success.
Mr Lewis has provided his top tips for Brits looking to start and grow their own business.
The tips originated in a blog in 2018 but the money saving guru reaffirmed his support for these key pieces of advice on X (formerly Twitter) this week.
Do the numbers
“If you’re going to run a business, do the numbers – and do them conservatively … And do them conservatively,” he said.
“Plus, your mates saying they like the idea does not count as market research. Friends like to please. It’s not the same as a mass of strangers, from a totally different walk of life, putting their hands in their pockets to pay for something.”
How will you support yourself?
Businesses take time and effort to build up. While many new business starters may be committed to their pitch and want to quit their day job to devote all of their time to it, without savings or a financial backer it can be difficult to get off the ground.
In addition, if all of your finances go on your business, you could face running into arrears on everyday bills such as rent or mortgage payments and utilities.
With that in mind, instead of diving in head first, with an all or nothing approach, Mr Lewis suggests considering starting off slow, and freelancing for two days a week while working on the business for another three, this way you can still have an income coming in, while also pursuing your passion project.
Do you have the necessary skills to bring your dream to life?
In truth the idea was flawed and he admitted he had no idea how to actually design it, get it built, or sell it. This meant that while the concept may have been brilliant, he wasn’t necessarily the right person to make It a reality.
For budding business owners that find themselves in this position, Mr Lewis explained that their were three options, either training up and learning the skills needed, busking it, or buying them in, all of which would impact on any timetable – and cost – of his business plan.
Mr Lewis stressed he is keen that people who want to follow their business dream should not be put off, but rather they should make sure they are realistic and open-eyed before pushing ahead.
Wishing self-starters good luck, he added: “If you are thinking about pursuing your great idea, be self-challenging and self-critical, do the numbers, assess the cost, and be honest about what you’re not good at.”
