In the first of a five-part series on starting out, we look at how to test your ideas
Ross Marshall, founding partner of yourgolftravel.com, relied on a solid business plan. (Dwane Senior)
Solid research and a good business plan were the foundation on which the rapid growth of Yourgolftravel.com was built. By creating a detailed plan and executing it relentlessly, Ross Marshall and his business partner, Andrew Harding, have built a business with sales of more than £7m in three years.
“When we quit our jobs to start the business we were well aware that almost 90% of businesses fail within three years,” said Marshall. “The travel business operates on fairly thin margins so you have to know where you’re going. There’s no doubt that if we hadn’t had a robust plan in place we would have been bankrupt pretty quickly.”
At a time of year when many people are taking a break from work and perhaps contemplating the idea of quitting altogether to start their own firm, Marshall’s experience is a reminder that solid planning can make the difference between success and failure.
“The most important thing you have to establish is whether there is a market out there for your product,” said Marshall. “As the entrepreneur you are the most important person you need to convince that the market is there. Planning is so important in giving you that confidence
“We had to get a good understanding of how big the market was, who the bigger players were, gathering as much information as possible about the sector. We spent a lot of time talking to insiders in the golf and travel trades. Andrew worked for the London Golf Show, so he had access to hundreds of exhibitors.
“We also tried to find out as much as we could about existing players from public documents available from places like Companies House. And we spent a long time drilling down on costings.”
Deciding that the popularity of golf breaks with men and women of all ages and from all sectors of society was growing but not being tapped by the big tour operators online, Marshall and Harding took the plunge, referring back to their plan constantly.
“It was a complete document, stating how the business would work. We set ourselves performance benchmarks almost week by week,” said Marshall. “We had meetings right from the start to assess where we were even when we were hardly making any sales, just to get into good habits. We had to keep to our targets and our budgets. We could not afford to wing it.”
