Money saving expert Martin Lewis outlines the key considerations before starting your own business

When it comes to money matters, the UK’s only money saving expert, Martin Lewis, is the guru. His expertise is not just limited to explaining the complexities of inheritance tax or untangling the web of benefits; Martin is our go-to person for clear guidance on the latest financial news.

Interestingly, in addition to his financial skills, Martin also offers top tips for budding entrepreneurs, having become an “accidental entrepreneur” during his stellar career in journalism. In 2018, Martin wrote a revealing blog post about key considerations before starting a new business, advice he reiterated earlier this week in a Twitter update.

Interested in what pearls of wisdom Martin has for aspiring business moguls?

First, don’t confuse a bright idea with a viable business. Martin points out that while coming up with a great idea is an exciting first step, there is a significant challenge in turning it into a successful money maker.

READ MORE: Martin Lewis wants people to claim huge amounts of cash right now

He warns against getting carried away by the novelty of an idea, suggesting instead to focus on the practicalities involved in making it happen financially, reports the Manchester Evening News.

The money-saving expert had some clear advice for budding entrepreneurs: “If you’re going to run a business, do the numbers,” he insisted. “And make them conservative. Besides, your colleagues saying they like the idea doesn’t count as market research. Friends like to please. It’s not the same as a bunch of strangers, from a totally different life, getting their hands on them. pockets to pay for something.”

He offered more no-nonsense advice, reminding people to “be tough” when assessing the risks of their adventure. This includes accepting that their “brilliant” idea may incur higher costs, experience delays, and yield less profit than anticipated.

Martin went on to question how individuals would support themselves while pursuing their dream. He pointed out that businesses often need substantial time and dedication to flourish, warning against giving up secure jobs in a hurry without a financial cushion or investor backing.

Furthermore, he warned of the potential danger of channeling all of one’s personal resources into a new venture, risking falling behind on essential living expenses such as rent or mortgage and utility bills, which are under such pressure.

In an alternative strategy, Martin advised taking a measured approach. Instead of pursuing a full-time business, consider juggling contract work, perhaps part-time freelancing, while devoting the rest of the week to business development. This tactic ensures a steady stream of income while allowing you to pursue your entrepreneurial aspirations.

Martin also advised people to ask themselves if they have the skills to make their dream a reality.

The money saving expert emphasized the importance of having the right skills to turn your dream into a successful business. He shared his own experience, recalling how he once conceived the idea of ​​a compartmentalized kettle a decade ago that would save energy by only heating the amount of water needed for a certain number of cups.

Admitting that the idea was wrong in retrospect, Martin confessed that even if he wanted to actualize it, he didn’t know how to “design it, build it or sell it.”

This meant that while the idea might have been innovative, he wasn’t necessarily the right person to carry it out.

For aspiring entrepreneurs who find themselves in this situation, Martin outlined three options: acquiring and learning the necessary skills, winging it, or outsourcing it. Each option would affect the timeline — and cost — of their business plan.

While Martin’s advice may seem harsh, he made it clear that he wasn’t trying to discourage anyone from pursuing their dream of starting a business. Instead, he aimed to prepare them for potential challenges by encouraging them to critically consider their goals, especially given that statistics show that half of new start-ups fail within five years.

“If you’re thinking about pursuing your great idea, be self-challenging and self-critical, do the numbers, assess the costs and be honest about what you’re not good at,” Martin advised, before adding a final note of encouragement. : “And good luck.”