Member Article

What does it take to be a successful entrepreneur?

Matt Newing, founder of Elite Group, shares his top five tips for entrepreneurs looking to grow their business successfully:

“It’s been nearly two decades since I set up my first company at the age of 23 and, today, Elite has a turnover of £156 million and 180 staff. There’s so much I’ve learned over the years – not least of all the importance of building a good team.

Here are my top tips for anyone poised to start their own journey as an entrepreneur …

Surround yourself with people who are better than you

Unless you employ people better than you, you won’t improve the skillset or knowledge of your business. Not only will a team of good people help to ensure things run smoothly on a day-to-day basis, it will also foster the innovative and forward-thinking approach needed to stay ahead of your competitors.

I’ve learned a lot from some of the fantastic people I’ve had the opportunity to work with and, whenever our company has made an acquisition, the people we take on are a crucial part of that transaction. Your staff are a major asset, so choose the best you can find.

Make sure your business can run without you

Many entrepreneurs don’t like to lose control, but don’t let your ego make you believe you’re indispensable.

Another reason why it’s so important to employ people better than you is that your business needs to be able to run without you, or mouths won’t be fed if you disappear.

Hire a good accountant and lawyer

Building on my first point, there’s no substitute for hiring an expert when it comes to your business finances and legal matters. As early as possible in your business journey, an accountant and lawyer are two crucial recruits.

You may understand some critical elements of business accounting, or you might have some level of knowledge about commercial law, but you need people who are purely focused on those elements of the business. Look to work with those people and firms that have industry-specific experience, whose knowledge of your sector will play a crucial role in helping you navigate the stormy waters of business life.

Overfund your business

Cash is the blood flow of your business and your opportunities for growth will be severely restricted without it. When we came to do our second acquisition our bank said we couldn’t invest our savings from our reserve account and that we would need to renew our existing facility, in other words borrow more money and pay an additional, new arrangement fee. Only then would the bank allow us to do the acquisition. As I had already shaken hands on the deal, I couldn’t back out of it. Instead of being beholden to the bank, we decided to put all of our life savings in and pay off the bank to enable us to complete the deal.

Subsequently we changed banks to one that has been a true partner.

Focus on making money

Your business has to make money to pay your staff. Many an entrepreneur gets bogged down in their innovative new product, or their mission to change the world, and fails to remember that business is about making money to pay people. No matter how good your idea, if you don’t have a commercial brain, you will struggle to make your business a success.“

This was posted in Bdaily's Members' News section by Elite Group .