Often, an entrepreneur comes up with a great idea and they develop their product(s) and put it out in the market, expecting organic growth. They see some revenue but only enough to tread water, so they remain a small business and make it their day job. They remove any captain of industry ambitions they may have once held.

And that's not good.

More than half a million startups are launched in the UK every year. A fifth are likely to collapse within their first year, with 3 in 5 failing in year three. Part of the problem is that many businesses simply do not scale. In fact, only 8,000 businesses have scaled to the point that they employ more than 250 people. In the UK, 75% of businesses only employ the founder(s), with many starting out without an exit in mind.

Then there's a knowledge gap; know-how is important to navigate legal, compliance, and fiscal management. Or there's often no one holding the entrepreneur's hand; a good coach or mentor will both hold the long-term plans to account as well as help maintain a sense of perspective that can otherwise get lost. And then there's sometimes just a lack of ambition; some entrepreneurs are simply attracted to the idea of self-employment and all the flexibility that offers. Scaling and selling is hard work and contains an element of risk that some entrepreneurs don't want to engage in.

What needs to change?

Scaling and selling needs to be on the horizon from the outset to spot and capitalise on the right opportunities. Rather than a company being an extension of the founder, it should be a product that can grow with the marketplace and be sold when the right opportunity comes along.

Real Role Models

We real role models to share their stories and experiences. The UK, like much of the world, has become obsessed with the cult of celebrity. We look up to and admire superstars, like the entrepreneurs on Dragons' Den. But most successful business leaders aren't on the television. They have quietly walked a successful path to prosperity and now keep a low profile enjoying their wealth. These are the role models we need to hear from.




A Shift In Conversation

There is a lot of conversation around starting a business, which is a difficult stage where reading and researching do help. So, it makes sense to have conversations about how to start a business.

What gets neglected, however, is the conversation around scaling and exiting a business. In fact, this should all be part of the same conversation. Scaling and selling need to be on the horizon from the outset to spot and capitalise on the right opportunities.

Starting with the end in mind forces us to think differently. Rather than seeing the company as being an extension of oneself, it becomes a product that can grow with the marketplace and be sold when the right opportunity comes along.




Developing Know-how

Even those who have studied business or entrepreneurship struggle with knowing how to scale and sell their companies. Their go-to is often to seek investment with a fancy pitch deck. But seeking investment means selling part of their business (often more than they want) at an early stage, reducing their incentive and drive to make it successful.

Better role models and more conversation around scaling and selling will definitely help develop know-how as well as demonstrate that investment isn't always the best option. We can also try to improve access to educational resources, whether formal or informal, to provide some of the more technical know-how.

Ten year tip

If you're an entrepreneur looking to scale and sell your business, my top tip is to try to imagine what the business will look like in 10 years. Try to detach yourself when you evaluate your idea. You want to see what it could look like even if you weren't involved.

What will the market look like in 10 years from now? Is the opportunity big enough? Which roles need filling to make the business work? What will the competition look like? How will technology impact your business over the next decade?

By shifting your thinking into the longer term, you create a goal. It then becomes far easier to orient your business decisions around reaching that goal.

By Fiona Hudson-Kelly, author of ‘Grow and Sell your Startup'

ABOUT THE AUTHOR

Fiona Hudson-Kelly has built two businesses and sold them for life-altering amounts of money. She now helps owners of small businesses scale and exit, enabling them to realise their dreams. In her new book, ‘Grow and Sell your Start-up; How to create a business you can sell for Millions' Fiona explains how she did it, and how you can too.

Website: www.FionaHudsonKelly.com

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