Starting a business can be an exciting and challenging adventure, but it’s also a risky one. Despite the allure of being your own boss and creating something from scratch, the statistics on startup success can be pretty daunting. In fact, some studies suggest that only around half of new UK startups survive beyond their first five years. So, what can we learn from these statistics, and how can we increase our chances of success? Let’s dive in and find out!

Choose a job that allows you to be flexible.

Getting a flexible job can be important to starting a business for a few key reasons. Firstly, starting a business often requires a significant amount of time, effort, and financial investment, and it can be difficult to sustain yourself financially during the early stages of the business. A flexible job can provide a reliable source of income while you work on building your business and can help you manage the financial risk of starting a new venture.

Secondly, a flexible job can also provide you with the flexibility you need to work on your business during your free time. For example, if you work a part-time or freelance job with flexible hours, you may be able to use your remaining time to focus on building your business. This can help you make progress on your business while still earning a steady income.

Thirdly, a flexible job can provide you with valuable skills and experiences that you can apply to your business. For example, if you work in marketing or sales, you can develop skills that will be useful in promoting and selling your own products or services.

Finally, a flexible job can provide you with a valuable network of contacts and potential customers that can help you grow your business. By working in a related industry, you can build relationships with people who may be interested in your products or services or who can provide you with valuable advice and guidance.

Overall, getting a flexible job can be an important step in starting a business. It can provide you with financial stability, flexibility, skills, and a network of contacts that can help you build a successful business.

Start saving and investing money.

Building up savings before starting a business is important for a few key reasons. Firstly, starting a business can be a risky venture, and having savings can help provide a safety net in case things don’t go as planned. Secondly, having savings can help cover the initial costs of starting a business, such as registering the business, purchasing equipment or inventory, and hiring employees. Lastly, having savings can help reduce the financial stress and pressure that can come with starting a business, which can allow you to focus on building and growing your business.

Here are some tips on how to build up savings before starting a business:

1. Create a budget: Creating a budget can help you identify areas where you can cut back on spending and allocate more money towards savings. Take a close look at your current expenses and identify any areas where you can reduce or eliminate spending.
2. Reduce debt: Reducing your debt can help you free up more money to put towards savings. Consider paying off high-interest debt first, such as credit card debt, and then work on paying off other debts, such as student loans or a mortgage.
3. Automate savings: Set up automatic transfers from your checking account to your savings account each month so you don’t have to think about it. This can help you save more consistently and avoid the temptation to spend the money on other things.
4. Increase income: Consider taking on a side job or looking for ways to increase your income in your current job or career. This can provide you with more money to put towards savings.
5. Cut back on non-essential expenses: Take a close look at your expenses and identify any non-essential expenses that you can cut back on. For example, you may be able to eat out less often, cancel subscriptions you don’t use, or find cheaper alternatives for things like cable or phone plans.
6. Seek professional advice: Consider seeking advice from a financial planner or investment advisor. They can help you make informed decisions about where to invest your money and how to maximize your savings potential.

Overall, building up savings before starting a business can provide a safety net, cover initial costs, and reduce financial stress. By creating a budget, reducing debt, automating savings, increasing income, cutting back on non-essential expenses, and seeking professional advice, you can build up your savings and put yourself in a better financial position to start and grow a successful business.

Start small and test the market

Starting small with a side hustle or testing the market is a good idea for a few reasons:

1. Lower risk: Starting small can help reduce the financial risk of starting a business. By testing the waters with a side hustle or by testing the market with a small offering, you can get a sense of how much demand there is for your product or service without investing a lot of time or money.
2. Learn as you go: Starting small allows you to learn as you go and make adjustments along the way. You can get feedback from customers and make changes to your offering based on what works and what doesn’t work.
3. Build a customer base: Starting small can help you build a customer base and generate buzz around your product or service. You can leverage word-of-mouth marketing and social media to reach potential customers and build a following.
4. Build confidence: Starting small can help build your confidence as an entrepreneur. By taking small steps and seeing success along the way, you can build momentum and feel more confident as you grow your business.
5. Keep your day job: Starting small with a side hustle or testing the market allows you to keep your day job while you work on building your business. This can provide a steady source of income while you work on your side hustle or test the market.

Overall, starting small with a side hustle or testing the market is a good way to reduce risk, learn as you go, build a customer base, build confidence, and keep your day job. By starting small and building slowly, you can increase your chances of success and build a strong foundation for a successful business.

Wait for your side hustle to outperform your 9-5 income

Waiting for your side hustle to outperform your 9-5 before quitting your job is a good idea for several reasons:

1. Financial stability: Your 9-5 provides a steady source of income, which is important for financial stability. By waiting for your side hustle to outperform your 9-5 before quitting, you can ensure that you have a reliable source of income to support yourself and your family.
2. Reduced risk: Starting a business is a risky venture. Waiting until your side hustle is generating enough income to support yourself and your business can help reduce the financial risk of starting a business.
3. Validation: If your side hustle is able to outperform your 9-5, it can serve as validation that there is a demand for your product or service. This can help build confidence in your business idea and increase your chances of success.
4. Growth potential: Waiting until your side hustle outperforms your 9-5 before quitting can also provide more opportunities for growth. If you’re able to generate enough income to support yourself and your business while still working your 9-5, you can reinvest the profits into your business and grow it more quickly.
5. Network: Your 9-5 can also provide valuable networking opportunities that can benefit your side hustle. By maintaining your 9-5, you can continue to build relationships with colleagues and industry professionals that can help you grow your business.

Overall, waiting for your side hustle to outperform your 9-5 before quitting is a smart strategy that can provide financial stability, reduce risk, validate your business idea, provide growth potential, and provide networking opportunities. By taking a patient and strategic approach to building your business, you can increase your chances of long-term success.

Continue to invest to ensure financial freedom

Diversifying your investments once you’ve started a new business is important for several reasons:

1. Reduced risk: Investing all of your money in one asset, such as your business, can be risky. By diversifying your investments, you can spread your risk across different assets and reduce your exposure to any one investment.
2. Financial stability: By diversifying your investments, you can create a more stable financial future for yourself. If your business experiences a downturn, having other investments can help offset any losses and provide a safety net.
3. Investment growth: Diversifying your investments can also provide opportunities for investment growth. By investing in different assets, you can take advantage of different investment opportunities and potentially increase your overall investment returns.
4. Long-term planning: Diversifying your investments is an important part of long-term financial planning. By diversifying your investments, you can create a more balanced and sustainable investment portfolio that can provide financial security for you and your family over the long term.
5. Flexibility: Diversifying your investments can also provide you with more flexibility in how you use your money. If you need to access your investments for any reason, having a diversified portfolio can make it easier to do so without disrupting your overall investment strategy.

Overall, diversifying your investments once you’ve started a new business is an important part of building a stable and sustainable financial future. By spreading your risk across different assets, you can reduce your exposure to any one investment, create opportunities for investment growth, and provide greater flexibility and financial security for yourself and your family over the long term.