Business Insight with Theo Paphitis
Theo Paphitis, Retail Entrepreneur and Small Business Champion through #SBS Small Business Sunday, talks to Business Connect Magazine and shares his insight when starting a business.

Britain is a nation of Entrepreneurs.
The backbone of the UK’s economic strength has always been the magnitude and variety of small businesses that drive prosperity and opportunity with the hardworking dreamers and doers that make all this happen. Starting a business has always been a lonely route for many entrepreneurs, but it doesn’t have to be. There are 1000’s of exciting stories to be shared within the #SBS Small Business Sunday community developed by Theo Paphitis. Theo has shared his top ten tips guiding entrepreneurs in building their dreams and aspirations:

#1 – DON’T BE AFRAID TO DREAM
“If you stop dreaming, you may as well pull the plug on everything.  I still dream and I will continue to dream until I kick the bucket because it creates, inspires and makes things happen – without that, what’s the point?

“Dreaming helps you to visualise success; the perfect place to start.  What a moment for you when that dream becomes a reality that you have created through self-belief, hard work and no doubt a bit of blood, sweat and tears.”

#2 – REDUCE THE RISK
“Your business risk-reward ratio has to stack up. You’re not just deciding between a red or a black at the casino. This is your chance to build a business and you have to be clever about it. I believe that you should never bet the farm on any one thing; it is too risky, and I can think of very, very few times that that has ever worked for anyone. 

“It’s all about the calculated risk.

“Accept that you may make mistakes along the way – you’re only human and no one is infallible.  But my focus is always on reducing the risk, whilst ensuring that the potential rewards are high.

“How do you do this? Know everything, read between the lines, look at the numbers, and then look at them again! You will reduce the risk if you know more than the next person you’re competing against.”

#3 – BE HONEST WITH YOURSELF
“Be honest with yourself through every stage of progressing a business idea.  When launching a new business, market research is key as well as understanding just how commercial it is.

“Most importantly you have to be honest with yourself about what you are doing to bring it to life. If the only people you’ve asked an opinion from are from the 3Fs (family, friends and fools), then you’re unlikely to get the difficult honest truth. Sometimes you just need to look yourself in the mirror and ask yourself the truly difficult questions… and take time to tune into the answers!”

#4 – DON’T HAVE A SMALL BUSINESS MINDSET
“I run #SBS Small Business Sunday – one of the biggest free small business communities in the UK.

“Every year I hold an annual event to give them exposure to brands and people who can inspire them and help their business to grow. I am always adamant to make sure they know the power they hold as a small business, and how they mustn’t have ‘poor old me’ syndrome.”

“We encourage #SBS businesses to think big. It can be a lonely business running a business, particularly as a sole trader, so supportive communities, like #SBS, should be a no-brainer!

“You are in business because you know what to do, you believe in what you’re doing and you are of value. If you don’t, you’re doing the wrong thing. Don’t think yourself small.”

#5 – CASH IS KING
“Cash flow is king. Profit is sanity. Turnover is vanity.

“A lack of profit is like cancer. If it carries on for a long time, it will eventually kill you. But a lack of cash is like a heart attack. You’re finished.

“If you can’t pay the wages, it’s all over. Don’t be without cash. You can live without profit but not without cash. It’s very basic and simple advice and a timeless one when it comes to business.”

#6 – DON’T BE AFRAID TO MAKE DECISIONS
“Once you have the idea, it is the confidence to actually make decisions that is crucial in starting and sustaining a business. Never be afraid to make a decision, as this is the way that businesses begin to grow. If a decision turns out to be wrong, identify it quickly, deal with it if you can, but don’t let that bad decision cause the business to bleed to death. 

“Also, if you can’t deal with it yourself, find an expert that can help you, as there’s no shame in asking others for help. Bad decisions left to fester will come back and bite you in the bum. So, commit to your decisions, but be realistic as to how they will impact your business. As a small business, you shouldn’t be frightened to make mistakes. It’s part of the learning process – part of what makes you, you.”

#7 – KEEPING UP WITH THE COMPETITION
“Never underestimate the strength of the opposition. Competition is everywhere and it can often be a race to the bottom on price, with businesses trying to out-deal each other.  

“You only have to look around the high street, where some of the biggest names, household names at one time, are no longer with us because they lost touch with the changes in how our customers were consuming.

“Don’t let red tape and old habits get in the way of you keeping up with your competitors. Be prepared to pivot your business as circumstances change – we must always take into account our customer and situation.”

#8 – PEOPLE
“As your business grows, the people you surround yourself with matter, you’re with them day in, day out and sometimes if it’s just you and one colleague, that’s a make-or-break relationship. They matter to your business, to your brand, to your customers and ultimately to you and your mental health. 

“Develop, support and hold onto good people, even as you grow into an even bigger company. I surround myself with people who are experts in their field to ensure that as each area needs to develop, you’re in safe hands.”

#9 – DON’T BE A BUSY FOOL
“Just as the road to hell is paved with good intentions, so the road to bankruptcy is paved with good ideas. I know many millionaires that failed several times during their journey, and it is the 3rd or 4th idea that hit the jackpot for them. They persevered and made an idea happen in the end.

“There’s always the danger in business of making ourselves into ‘busy fools’ – taking a project, devoting time and resources to it, and ending up with no financial reward. Knowing when to leave something because it isn’t working is imperative, before you invest too much of your time, money and heart is a hard but necessary path.”

#10 – LEARN TO LET GO
“When things are rosy in business, it is the hardest time for someone to sell their business – and why would you want to? The good times are rolling! It’s very difficult for an entrepreneur to let go, especially when it is something you have built up from scratch with your bare hands.

“But, as business entrepreneurs, you must be able to create something and then sell it at the right time. It’s not easy. You’ve put so much of your life, your body and soul, into something you have created and nurtured, and then you have to let go. And, there is always a right time to sell. Don’t look opportunity in the face and be blinded by something else, as you will regret that moment for a long time.

“If you’re a small business and want to learn more about Theo’s free #SBS Small Business Sunday, that marks 15 years of supporting SMEs, take a look: theopaphitissbs.com”