Richard Branson is one of the most knowledgeable and successful entrepreneurs in the world. For the New Year, the Virgin Group founder is sharing some tips on how to set up a successful business in 2017.

The 66-year-old took to his blog on Friday, Jan. 13 to share his tips on building a successful business. The mogul said that as starting a business is something that they have done a few times at Virgin, they manage to see these ventures through from ideas to realities.

Branson said that anyone who wants to get into business should have a clear idea of what the business will do and what it stands for. He suggests writing an executive summary or a short paragraph that sums up what the business aims to do and who is its target market.

The business magnate said that anyone planning to put up a business should prove that the business or idea can work. He suggests starting small and doing crowdfunding and market research to see if there is a market for the business.

Winning a contract with a big business can have a positive effect on any start-up, according to Branson. He also said that start-ups that put purpose at the heart of what they do will have the most success this year.

The philanthropist said that finding a good mentor is essential for anyone who aspires to go into business. Branson said that he has had many mentors throughout his career and that learning through someone else’s mistakes and successes can be valuable when it comes to starting a business.

Finally, Branson warns that poor cash flow is the biggest reason why start-ups fail. He suggests checking out his company’s guide to creating a financial forecast to learn how to stay on top of finances.

For more, check out Jobs & Hire’s report on how to work less and get more done.