A city of innovation, creativity, and passion, Manchester continues to thrive as a key city in the UK’s “Northern Powerhouse”. But that’s not to say that all businesses in the city are flawless. Some hit the ground running, penetrating their local or national market and finding huge success.
But others commit common errors in the scale-up process that might leave them out of pocket and with a business that’s no longer generating revenue. So in this piece, we’ll look at three of those most common errors – and what you can do to avoid them.
Financial Planning
When you start a business, you know you’re putting your hard-earned cash on the line. Even if you’re mostly investing from a loan or through external funding, the buck stops with you, and you’ll need to deliver. The problem is that there’s just so much to manage when you’re starting up a business, and sometimes financial affairs fall by the wayside in favour of business development and planning.
And this error can be ruinous for your firm. If you’re not always abreast of the comings and goings in your business bank account, you might arrive at a situation during which you have no cash to pay for bills, and your business is at risk of folding. So the first error to avoid – and one we see time and again afflicting promising businesses in Manchester – is neglecting your finances. They’re the bedrock and the basis of any future success you enjoy as a firm.
Risk Management
Running out of cash or defaulting on loans is just one of many risks that Manchester-based businesses have to negotiate. And as risks pile up, it becomes more and more difficult to determine which you should prioritise, which you should respond to, and which you should merely remain aware of as you develop and grow. As a result, many firms simply neglect to properly manage their risks.
It’s precisely because it’s so difficult to manage your risk profile that risk management software has been created for businesses. You can visit sword-grc.com to learn more about how these work. But the key point for Manchester-based businesses is that you needn’t neglect or feel overwhelmed by risks – software can help you plan and overcome any challenge down the line.
Overreach
If your business is enjoying a roaring trade in Manchester, you might rightly believe that you should start expanding to other cities in the region. That’s a reasonable ambition and one that can often result in higher footfall, more sales, and higher profits for your firm. But expanding too early, or too ambitiously, frequently leaves Manchester firms out to dry without the income to sustain their second store.
So being careful not to overreach is a key tip for businesses in Manchester and beyond. You might feel that the time’s right to buy a store in Liverpool or Burnley, but do you know and appreciate the area? Can you guarantee success? Always be cautious to avoid the pitfalls of overreach.
Manchester firms are often successful regionally, nationally, and internationally. In order to make more firms world-beating, businesses should be aware of these three errors commonly seen across businesses in Manchester.
