The process of starting a new business can be daunting. Ask any successful business owners, anyone whose tried to get a business idea off the ground. It can be hard, but my goodness it’s rewarding in so many ways.
Often it includes a period of the business getting it’s first customers and this may mean that starting off on a part time basis will work well for you.
It inevitably involves a period of instability and uncertainty before the business is established and starts working, and this frightens many away from the endeavor.
But it doesn’t have to be this way.
There are ways you can work around the problems and come out on top. By reading this guide I can help you prepare for your new business and improve your likelihood of success. If you’re wondering how to start a new business, just follow the steps below:
Step 1: Decide exactly what you want. Start with something you really want to do, that way there will be no room for doubt or uncertainty down the line. You’ll invest more into your business, and receive more satisfaction in return. If you’re not sure what you want to do, then take the time to really think about it. What do you like to do in your spare time? What is your passion? What do you want to do in the future? Try and think about these questions in detail and remember to take all of your personal interests and hobbies into account.
Step 2: Carry out market research. Be objective and don’t let your judgement be clouded by your hopes and aspirations. At the end of the day there must be a target market who are willing to pay for your business outputs and a high enough price that will allow your business to grow and flourish. If you don’t have customers then you have a hobby rather than a business.
Step 2: Make a list of everything. That sounds easier than it is, but it’s a very important step in finally making a decision. Make a list of everything you want to do, how you want it to look, what you need to get it off the ground, how much it will cost, etc.
Step 3: Research Your options Now that you know what you want to do and where you want to go, research different types of businesses available to you. This includes researching online as well as talking to people who already run their own successful businesses. Ask them if they would recommend any particular type of business over another. Also ask them which aspects of running a business they enjoy most. The answers to these questions should give you an idea of whether certain industries might suit you better than others. What about premises? Will you work from home? Work online? Be mobile?
Step 4: Choose one industry Finally, choose one industry that you feel comfortable doing. Don’t worry too much about choosing the right industry at first; instead focus on finding a good fit between yourself and the industry. For example, if you love cooking, don’t try and open up a restaurant – find some other niche within food preparation. Once you’ve chosen your industry, make sure you understand its market size and growth potential.
Step 5: Find funding As soon as possible after deciding upon your industry, begin looking for investors. Investors provide capital so that entrepreneurs can grow their businesses without having to spend money themselves. They also offer advice and guidance when needed.
Step 6: Get started! After getting your investor onboard, you’ll now need to set up your company (depending on the legal structure you have chosen). Depending on the kind of business you decide to launch, this may involve registering your name, opening bank accounts, buying equipment, hiring staff, setting up websites, creating marketing materials, and so forth.
Building a Collaborative Business
Before you start your business it is wise to consider what kind of business structure is right for you, and how to ensure you are entering the world of business prepared to deal with most situations that may arise. The structure your business takes will have a major impact on many key aspects of your business, from how it’s taxed to legal liabilities. Option One: Sole Proprietorship A sole proprietorship is an easy and inexpensive way to start a small business. Sole proprietors enjoy minimal legal and tax obligations, but have unlimited personal liability for the debts and obligations of the business. Option Two: Partnership In a partnership, two or more people join forces to create a business. Each of the partners contributes some form of capital and shares in the profits and losses equally. Partners can be of any relationship, and often require legal and tax preparation and planning agreements that constitute of a partnership agreement. Option three: Corporation A corporation is a legal entity that acts as a person. The corporation has the ability to enter into contracts, sue and be sued, and pay taxes—all without having to be concerned about the personal assets and affairs of the natural persons who own and run the business.
Starting Your Company
Once you’ve made the decision to set up your own business, you’ll need to decide what type of business to start. There are three basic types of business structures: sole proprietorship, partnership, and Limited Liability Company. A sole proprietorship is an easy and inexpensive way to start a small business. Sole proprietors enjoy minimal legal and tax obligations, but have unlimited personal liability for the debts and obligations of the business. In a partnership, two or more people join forces to create a business. Each of the partners contributes some form of capital and shares in the profits and losses equally. Partners can be of any relationship, and often require legal and tax preparation and planning agreements that constitute of a partnership agreement. A corporation is a legal entity that acts as a person. The corporation has the ability to enter into contracts, sue and be sued, and pay taxes. The corporation has separate legal status from its owners. It can exist indefinitely, allowing it to make plans for the future, while the owners are only responsible for the corporation’s success for a finite period of time. A nonprofit corporation is a corporation that has been formed to perform certain community functions that are considered to be in the public interest.
Business Plan
There are many reasons to develop a business plan, not least of which is to meet with investors or to win bank loans. A business plan is also useful for motivating stakeholders and for maintaining focus on what you are trying to accomplish. An important part of developing a business plan is creating your vision for the future. You need to know where you want your business to be in 5 years, 10 years, and 20 years. Things to include in your business plan: -Summary of company -Name of company -Description of product or service -Main customers -The company’s guiding principles -Significant demographics -Company history -Vision of company -Types of customers -Marketing plan -Financial projections -Legal entities of company (LLC, corporation)
Capital Funding
Starting your business without having the required capital can be a tough challenge to overcome, but it’s not impossible. If you have a good idea for a product or service, the first thing you want to do is find out if there are investors out there who are willing to finance your venture. Before turning to friends and family, look to professional investors for funding. A wise investor will be able to offer you guidance on how to get there. For instance, if you are trying to establish your business model, they might offer you suggestions on what kinds of customers you should target. If you are looking for ways to cut back on costs, they can provide you with profitable avenues to explore. The very first step in the process of identifying “good” sources of capital is to identify what you need capital for. Below are some examples of capital needs, along with “good” capital sources for each of them. If you are looking for equipment, try government sources of capital, equipment suppliers, angel investors, or venture capitalists. If you are looking for working capital, try banks, family and friends, or angel investors/venture capitalists.
Statistics
30% is the increase in incorporated businesses registered with Companies House in 2020, compared to 2019 (sage.com)
Did you know the types of start-up most searched for by would-be-entrepreneurs are ‘online’ and ‘home business’ ideas 47% increase of new UK small businesses started in 2020 (sage.com)
Did you know 65% of SMEs don’t have a business plan Not to be dramatic, but this is the blueprint for everything. (sage.com)
36% of fashion buyers in the UK say they’d like to see a cafe in a fashion shop 2. (startups.co.uk)
37% of fashion buyers in the UK say they’d like to see a smart mirror in a changing room 3. (startups.co.uk)
According to Whybro, “Consumers now need over 20 points of contact with a brand.” (startups.co.uk)
Toby Nwazor of Entrepreneur magazine recommends that you aim for prices 30% – 50% higher than your expenses to ensure a profit. (crowdspring.com)