There are lots of things to consider when starting your own business. Having your own business gives you the freedom to be your own boss and you no longer have to answer to anyone. It’s you making all the important decisions. But where do you begin?
1.Write your business plan
A business plan is a fundamental part of your business. Not only will a business plan help you to secure funding and assist in the process of setting up a business bank account but it can also map out the future of your business. By putting your business plan in place you will be able to identify the strengths and weaknesses and any risks which may occur before they even happen. When writing your business plan it will help you to think outside the box. You will think about things you hadn’t previously considered and that’s really important before you get started.
Before anything, you need to give thought to how you want to run your business. Do you want to be running a business where you do all the work or will you want to build a team who you can delegate the work to, whilst you manage the business?
A business plan enables you to map out the future of your business. Write down the reason you want to start your business and what success would look like. How would you measure it and what’s your main goal? How long do you expect it will take you to achieve it?
During this process you’ll also have time to consider who your ideal client is, what they look like, where they hang out. By identifying this early on you’ll know who your target audience is so that you can develop your products and services around them.
2.Do your research
Researching the competition should form part of your business plan. You need to get an insight into the industry and see what competitors are doing so you can be one step ahead. What prices are they charging, how does the quality of their products and services compare to yours? How will you ensure you stand out? What will be your unique selling point? These are all points to consider to decide whether or not there’s room in the market for what you’re trying to build.
3.Secure Funding
You’ll need to plan out how much it’s going to cost to get your business started. Most businesses need a cash injection to get up off the ground. Where will this money come from? Will you need to secure a loan or are you eligible for a government grant? Having your business plan in place is critical as investors will want to review it. It’s also important for you to establish how much money you need to generate at first in order for you to pay household bills etc. So get your finances in order and start as you mean to go on.
4.Choose a business structure
Consider all of your options. Are you starting up your business alone or will you have business partners? If you’re alone then your main options are to start up as a Sole Trader or to register as a Limited Company. If you’re a partnership are you going to be a Limited company with shareholders or are you going to form a partnership? If it’s the latter then you’ll need to consider if you need to form a Limited Partnership or if a General Partnership will be sufficient. Do your research before you decide upon this and maybe ask an accountant for advice. There’s nothing stopping you from changing your mind later down the line, but it will mean more admin and paperwork so it’s best to get it right from the beginning.
5.Choose a business name
This can be a tricky decision! There’s lots of things to consider when deciding on a business name. Your business name is your brand identity, it needs to stand out and be appealing to your ideal client.
Going back to point 1 and considering how you want to run your business. If you choose to grow your business and have a team so that you don’t have to be the face of the business it may be best to choose a name which is more generic and not directly linked to you. By doing this clients will learn that they can deal with other people in the business, not just you, which will take the pressure off.
You also need to consider if eventually you’d like to sell your business (yes I know you’re only just starting out!). The reason I mention this is, if you name your business using your name for example, it may not be as easy to sell later down the line. If that’s not your intention then using your name won’t be an issue. You’ll need to check with Companies House to see whether or not the business name is available. You can do that here. It’s also worth checking to see if the name is Trademarked. You can check here. There’s also rules around what you can call your business. Find out more here.
6.Register your business
You will need to register your business with HMRC and if you’re a Limited Company you’ll need to register it with Companies House too. You can do this at the same time online. HMRC charge a small fee to register your Limited company.
If you’re a Sole Trader you’ll need to register your business before 5th October in your second tax year.
7.Choose a location
This may be a really straightforward process or it may take a lot of consideration. You may just decide to work from home, or if this isn’t an option there’s things to consider such as;
- How accessible the premises are – if you use hauliers is your location easily accessible from main roads?
- Can your customers easily find you?
- How close your competition is
- How secure the area and premises are
- Cost – how expensive is it to rent/buy in the area? How much are business rates?
- Will it be easy enough to employ people with the right skillset in the area?
- Is there room for growth?
8.Money Mindset & Motivation
If you’re leaping from employment to business owner then your mindset needs to shift too. You won’t be held accountable by anyone but yourself. You need to keep focused and motivated at all times. This can be difficult so having self-driven qualities will definitely stand you in good stead. Stay in a routine each day, be organised and map out what your day looks like. Decide what you want to achieve on that day or within that week. Remaining positive is key to becoming successful. You’re bound to make mistakes along the way but just remember to learn from these mistakes in order to improve your business rather than letting failures concern and worry you.
Mindset books or motivational podcasts can be really useful especially if you read or listen first thing in the morning.
Look after your health and wellbeing and take regular breaks and exercise. You may not feel like you have time but you have to put yourself first in business, as without you there is no business!
9.Software & Equipment
Investing in the right software is essential to your business. Software can make your life much easier and with automation you can save yourself so much time so you can concentrate on driving your business forward. Research various software which would be useful to the everyday running of your business. Choose software which helps your customer experience as well as being user friendly.
Research the equipment you require in order to do your job. Don’t settle for poor equipment which will hold you back or cause downtime in your business.
10.Protect yourself
Ensure that you take out relevant insurance and that you’re complying to all laws and regulations. Not only will you need to comply with the regulations of HMRC when it comes to filing your tax returns but you’ll also need to research compliance within your industry. One of the main things to consider is GDPR compliance but there are many laws which may affect your business, such as Health and Safety etc.
11.Be visible online
At the point when you’re registering your business you should also take a look to see if a website domain is available for your business name. Get this secured as soon as possible. You can build out a website yourself but if you’re not the creative type you may think about outsourcing this task. It doesn’t have to be expensive to begin with. It’s important to have a platform where you can be seen and where you can refer people to for further information.
12.Marketing Strategy
This will also form part of your business plan. You’ll need to map out what you plan to do to gain new leads and business. With your ideal client in mind, think about where they are likely to see your advertisements. Would this be on social media? Do you think a leaflet drop may be beneficial? Or will you need higher end advertising such as TV and Radio? You don’t have to choose one method but it will depend on your marketing budget.
13.Start Networking
Talk to others about your business. Even if it’s just to family and friends, you never know they may know someone who has been looking for what you’re offering. Word of mouth plays a big part in business success so don’t be afraid to talk. Find out what events are taking place in your area. There’s many business networks out there and there’s also virtual ones too. Being present will get you noticed. It may also help to build other connections such as suppliers or people you can outsource work to.
14.Get the right team behind you
You may be able to start your business alone but once you get busier you may find the need to employ members of staff. If the budget doesn’t stretch that far or you don’t want the commitment then maybe you could freelance work to people. You may think this isn’t something you need to worry about when you first start out in business but being prepared for when the momentum kicks in will mean you can deal with it efficiently and not have to worry about your service faltering.
15.Hire a bookkeeper
Did you know that 20% of businesses fail in their first year? Investing in a bookkeeper from the outset will ensure that you’re accountable for your business finances. We support businesses just like yours, reviewing financial goals together, improving the health of cash flow and ensuring you meet all deadlines so you don’t get any nasty fines. We’ll also make sure you know what expenses are tax deductible so you don’t have to pay the taxman too much!
Whether you’re just starting out in business and need guidance or if you’re well established and just need to get your finances in order, we’d love to hear from you.