Setting up a new business can be a daunting process, especially if you haven’t done it before. From registering your company to organising finances, there are a number of processes that you need to go through to ensure you are properly set up. You can find lots of helpful advice on the government’s website that will walk you through the key elements of setting up your business.
One of the main considerations before you set up a business is how viable your business idea is. Will you be able to make a profit from the idea that you have? These are the questions you need to consider when researching before committing to setting up a business.
The best way to ensure that you are doing enough research and planning is to develop a business plan. You can download templates for this from many business websites before working through the plan.
Most business plans will include the following sections:
• Business Summary incl. aims and financial summary
• Elevator pitch/strapline
• Evaluation of your skills
• Products and services
• The market
• Market research
• Marketing strategy
• Competitor analysis
• Costs and pricing strategy
• Full financial profit/loss forecast
By completing the plan, you will not only have a better grasp of your own business and how it will work, but it will also pose questions that you may not have originally thought of. Before you decide to take the plunge and start up your own business, certainty is a must, otherwise there is risk of failure. Many people make the mistake of neglecting the planning stage and soon find themselves losing money at a rapid rate.
Having the right pricing structure is key when making a profit, so you will need to analyze competitors and their going rate for the same type of services and/or products you will be offering.
Your first year of setting up a business can be expensive, so try to avoid long-term financial commitments if you can. If you are looking to rent premises, don’t commit to a ten year lease, as you are still uncertain whether the business will take off.
If you are taking out business loans, shop around and see what the best rates are for your circumstances. Companies like LendGenius will be able to give you advice on the loan rates that are available for your business.
Don’t underestimate the value of a good marketing strategy. You may be reluctant to pay large sums of money for marketing, but when it comes to business, marketing is the key factor in gaining customers and building a brand. Do not neglect this area, even if it does sound like an expense you cannot afford. Investing in a competent marketing team will make your company, and not will break it.
If you follow this advice and use the business plan template along with being sensible with your costs and pricing, there is little reason against you becoming a successful entrepreneur. Good strategy is what makes a business prosper.
