Every day, thousands of people set up their own businesses. Many will
agree that starting your own business is a great, but challenging
experience. You need to understand the ‘start-up’ process, because this
makes a big difference to the success of your new business. Here are the
necessary steps to consider when starting up your new business.
1 Brainstorm possible ideas
Coming up with a viable business idea
can be challenging and initial brainstorming can help you to arrive at
one. Think about issues that people are faced with every day and write
them down. Helping to solve such problems could enable you to come up
with some excellent ideas. You could even brainstorm ideas that improve
existing products and services.
Tip: Think of products and services that will add value to people’s lives.
2 Carry out market research
This is where you will validate your ideas. You need to determine and test whether your product or service is viable by researching your potential market.
Ask yourself, “Is my product or service niche? Is there space for it
or is the market saturated?” Are you likely to make enough sales given
the size and nature of your target market?
There are many ways in which you can conduct basic market research,
including seeking the opinions of family and friends. Also be sure to
speak to people you don’t know.
Tip: Don’t just rely on secondary
research, web resources or surveying only the people you know. Poor
research can steer your business in the wrong direction.
3 Draw up a business plan
This seems like a very obvious step, because you would need a business plan
to secure a business loan. However, this step involves strategic
planning and requires your full involvement. It will involve identifying
your funding, business risks, as well as your aims and objectives. Here
you will also evaluate your competition and understand your business’s
cashflow.
Tip: Focus on the vision and
viability of your business, potential for profits and the resources
required, as well as a strategy for your success.
4 Hire a good accountant
The assitance of a reputable accountant
can prove invaluable when starting your own business. They will be able
to provide you with assistance, objectivity and expertise. Your
accountant will also be able to help determine the best legal structure for your business and help you establish bookkeeping and other forms of record-keeping procedures. This will ensure you stay on track and up-to-date on all your paper work.
5 Decide on a good business name
Naming a business
is a key decision. The name of your business is the first thing that
potential customers will notice, so think of it as the entry point for
your business.
Think about your target market, product/service and image that you
want to project to your market. Your name should work well wherever it
is used, whether over the phone, on stationery, website, logo, etc.
Also, it’s important to check whether the name you want to use is available. You can do this by searching the National Business Register.
Remember: Whatever name you choose, it should make you stand out from your competitors.
6 Find suppliers
No matter what structure you choose, you are likely to work with a number of different people to develop your business, such as suppliers, possibly distributors and maybe partners.
You may want to find a co-founder with the necessary skills and
knowledge in order to assist where necessary. Whether you need materials
to make your product or equipment to run your service, it’s possible
that you will work very closely with your suppliers.
A good way to search for reputable suppliers is by asking other
businesses in your field or by searching online. Make a list of those
that you thought were good and arrange a meeting in order to talk about
their prices, to develop a relationship and to get an idea of which
suppliers are reliable and trustworthy.
7 Set up your business and find funding
Before you register and begin trading, you must choose which legal structure
is suitable for your business. When deciding, it’s wise to understand
what each structure involves. Most businesses in the UK are sole
traders, limited companies or business partnerships. You also need to
find a way to fund launching your new business.
There are many other steps you have to consider when wanting to start
your own business, but by following the above steps, you will be ahead
of the game.
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