The Tribune

By Simon Cooper

Res Socius

When I’m asked how business people find themselves in the wrong place at the wrong time, I generally follow two lines of reasoning. These include wrongly thinking there was a market in a gap where there was none, and lacking the right personality to be in business in the first place.

The profile of a Successful Businessperson

In order to succeed in business you need an abundance of grit, patience and resolve. For every person who succeeds in getting rich quickly, another 99 either find it takes far longer or fold without reaching critical mass.

From personal experience I’ll add stamina and business skills, because many good businesses fail despite being excellent ideas in principle. When you work for other people they’ll usually be on your side and hope that you succeed. The rough and tumble of the marketplace is completely different.

The profile of a Successful Business

Businesses that work have access to sustainable markets that wish to receive their products, and can afford their costs. When these things are true, there’s at least a potential market in the gap. If not, there may be a gap in the market, but it’s probably not worth pursuing.

Given that success in business inevitably spurs on competition, the next consideration is the elasticity of costs and swing room in the profit margin. If there is little or no manoevering space, then the business plan is fragile, especially if somebody else comes up with a cheaper alternative.

An important third consideration is the direction that the market is moving in. Is the product visionary, on the crest of a wave or stalling? Just like the laws of gravity, what goes up inevitably comes down again. The best point to enter an industry is in a time of early, rapid growth.

Finally, is there any way that you can protect your brand through copyrighted signage or a patented design? The most successful businesses on - and off - Internet reach out with a statement that says “I’m here and you want me.”

The Element of Risk

Nobody has a crystal ball. Not you, not me, and certainly nobody else. If you apply the above principles when choosing a start-up business, you are more likely to succeed. By the same token, when you buy an existing business for sale, there is at least a track record that goes with it, and an indication of the future.

NB: Simon Cooper is a founding partner of Res Socius, a firm authorised by the Bahamas Investment Authority to facilitate the sale and purchase of businesses and provide management consultancy services. Contact 376-1256 or visit www.ressocius.com.