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Is your business idea sustainable?

FROM the perspective of being a partner in a law firm that started trading in the 1790s, you might think that we view staying in business to be a straightforward matter.

However, my observation (based on my own 30 years’ experience) is that the common features for a business to be sustainable are:

* Is there really a need for what you are selling? While the need for lawyers has been constant for centuries, the lawyers that will prosper are those that consistently make themselves relevant to their clients. For new products, is there really an appetite out there to buy it?

FROM the perspective of being a partner in a law firm that started trading in the 1790s, you might think that we view staying in business to be a straightforward matter.

However, my observation (based on my own 30 years’ experience) is that the common features for a business to be sustainable are:

* Is there really a need for what you are selling? While the need for lawyers has been constant for centuries, the lawyers that will prosper are those that consistently make themselves relevant to their clients. For new products, is there really an appetite out there to buy it? Are friends and family really being honest if they say they would buy it?

* Being in business involves enormous pressures, hassles, set-backs and frustrations. No one ever said it would be easy! What gets you through that, is your passion for what you do. Someone has to stay late, lie awake at night worrying and have the drive and determination to see things through. That has to be you, if it’s your business. Without that passion, eventually events will take over and you lose control.

* Everyone needs a bit of luck, and recognise luck and enjoy it when it arrives. Don’t think it’s got something to do with you! However, more interesting is what happens when you are faced with bad luck. This is when your determination and effort will see you through. Some give up.

* Sort out and put in place your basics. Things like an easy-to-use website. Do you own the rights to it? Things like a set of conditions of sale. Do you make sure that they are used? In the excitement of winning a sale from a customer, do you have your paperwork in order, so that you have a robust position if it all falls apart after you’ve put a load of effort and money into working on the sale. Quite often, the strong position that clients think they have turns out to be quite weak once we have examined the (lack of) paperwork!

* Above all, the really successful businesses know their limitations and when to take advice. Good experienced lawyers and accountants and bankers can add real value and expertise and wisdom, and will be happy to share it all with you. Just ask!

And finally, while I cannot promise that, like us, your business will be able to celebrate its bi-century, if you put in place the fundamentals set out above, you will be in the best position to create a sustainable business and create some real wealth.

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