Millionaires' business tips

Millionaires' seven tips for getting started in business
By Emma-Lou Montgomery, MSN Money special correspondent
Last updated April 26 2005

Anyone who’s hooked on the BBC 2 series, The Apprentice, will have seen that becoming a successful entrepreneur is not a walk in the park. But if you think you’ve got what it takes, read on for tips on how to get started from some people who have already cracked it.

You have only to tune in to The Apprentice on BBC2, to see that it takes serious drive and determination to hit the big time. The weekly cull of Alan Sugar ‘Mini-Me wannabes’, who have spent the past few months trying to convince the multi-millionaire entrepreneur that they’ve got what it takes to hit the big time, are proof that getting to the top is not a job for the faint hearted.

When one of the ‘contestants’ Saira Khan vowed: “I’m going to win this now, even if it kills me”, she really wasn’t exaggerating about the commitment required.Here are seven essentials that Alan Sugar will be looking for in his protégé, and what you will need if you too want to get to the top. All seven are based on what millionaire businessmen and women have done to become so successful.

1. Be prepared to take risks

When it comes to being an entrepreneur, taking a few risks here and there is obligatory, as long as they are calculated risks.

First you have to ask yourself: Will your idea work? Will people pay for it? Will it prove to be a flash in the pan, or a long-term success? How positively you answer these questions should give you some idea of your expected success rate. But there is always some risk involved in any new venture– and you have to be prepared to assess these risks as they present themselves and more often than not, just bite the bullet and go for it.

Business is a risky thing and the figures speak for themselves. There are 3.95 million small businesses in the UK, according to the Federation of Small Businesses, but an estimated 315 of them go bust every week. So whether you plan to fill a market niche, recycle your expertise, or turn your hobby into a career, you had better realise there are always risks involved. And knowing exactly what they are from the outset (as much as you can) will help to make sure you don’t end up being number 316 on that list.

2. Learn to spot an opportunity

Opportunities have to be taken, but they rarely come along without some of that dreaded risk attached, no matter how savvy you are. When Sir Clive Sinclair spotted a gap in the market for a family computer, the Sinclair ZX Spectrum was the end result – which ended up being the most successful invention of its time. But then again, he was way off the mark with his Sinclair C5. The idea was sound – an electric vehicle that almost anyone could drive, unlicensed, untaxed and uninsured. And all for an affordable £399. But heavy, unreliable batteries, coupled with serious safety concerns (and the fact that users looked rather silly on the road alongside cars), meant this was one opportunity Sir Clive would have been better passing up on.

3. Don’t be afraid to reinvent the wheel

Originality doesn’t have to be the only winning ticket. James Dyson, of the eponymous vacuum cleaner range, proved just that. He took the humble hoover and after a bit of tinkering, came up with a new way of ‘cleaning up’. Now as well as being a multi-millionaire, James Dyson, along with Richard Branson and Bill Gates, is one of the most admired entrepreneurs around.

4. Exploit your market

When you find you’re on to a good thing, stick with it. When Alan Sugar first successfully tapped into the market for mid-range, mass-produced electronics, he didn’t rest on his laurels. He went on to give his public more of what they wanted, from stereos to computers to email phones.

5. Diversify and conquer

Knowing your market and then exploiting your ‘brand name’ is key here. And this is something that easyGroup’s Stelios knows all about. After winning his customers over with knockdown airline seats, he broadened his range and carried the ‘no frills’ concept over to car hire, internet access, credit cards and now mobile phone calls. His exploitation of the ‘pile ‘em high, sell ‘em cheap’ school of business (which goes back to time immemorial, or at least to when Jack Cohen founded Tesco’s) has helped make him a billionaire, which is ultimately what every entrepreneur probably strives to become.

6. Be prepared to work harder than you’ve ever done before

Flexing your entrepreneurial muscle means giving it not 100%, but 110% commitment, 24 hours a day, seven days a week, 52 weeks a year. Few, if any, self-made millionaires would tell you different.

When you start working for yourself you can forget holidays, or sitting back and watching your empire grow. Hands-on dedication is required. Nothing less will suffice.

7. Do something you love

If you’re going to dedicate your life working all the hours God sends, giving up weekends and holidays, and living and breathing every last detail of your business, it is essential that you’re passionate about what you’re doing. So that means doing something you love.

“If you do what you love, you're going to be better at it,” says millionaire entrepreneur Ken Wills. He started his businesses from scratch and now heads an empire with an annual turnover of £20 million which ranges from a jet engine maintenance shop and helicopter firm, to a fire prevention company, to a restaurant, to a jewellery business, and even a radio station.

And once you get to the top, don’t think you’re going to be able to sit back and relax and let someone else do all the hard work either, or even want to. If Stelios, James Dyson, Richard Branson, and Alan Sugar are anything to go by, that means you’ll have to remain in control if you want to be on top of your game right to the end. This isn’t something that worries Sir Alan. As he has said: "I'll never retire. I'll still be arguing, trying to get a better deal, when they nail me into my coffin."