Many people think of making a new start by setting up in business for themselves, but are not sure where to begin and so never do. Check out these top tips to get a better idea of what you need to do to get started.
'There are many considerations when starting up a brand new small business and most essential of all is the planning,’ says Mark Thompson, Head of commercial product development at Norwich Union. ‘From meeting your financial needs and understanding tax implications to knowing your consumer and insuring yourself against potential pitfalls, every single aspect of running your business must be properly thought through. Once you have your plan of attack, only then should you consider your launch.’
1) Do what you love. You’re going to devote a lot of time and energy to starting a business and building it into a successful enterprise, so it’s really important that you truly deeply enjoy what you do, whether it be running fishing charters, creating pottery or simply challenging yourself to be a success.
2) Write a business plan. The main reason for doing a business plan first is that it can help you clarify exactly what is needed to convince yourself and, more importantly, your bank manager and partners that the business can succeed
3) Don’t become dependent on your business from the outset. It may be a long time before your new project makes any profits. Having savings or another job while you’re starting out means money in your pocket while you’re going through the business start up process.
4) Insure your business – You’re entering uncharted territory so a comprehensive plan and advice from an insurance company will make you feel more secure
5) Get clients or customers first. Don’t wait until you’ve officially started your business to line these up. Make sure your target market exists. Make the contacts. Sell or even give away your products or services. You can’t start marketing too soon.
6) Do the research. You need to become an expert on your industry, products and services, if you’re not already. Joining related industry or professional associations before you start your business is a great idea.
7) Get the money lined up. Save up if you have to. Approach potential investors and lenders. Figure out your financial fall-back plan. Don’t expect to start a business and then walk into a bank and get money. In order to secure finances from outside to start your business you will need to provide a concise and professional business plan
8) Be professional from the start. Everything about you and the way you do business needs to let people know that you are a serious professional. That means organising business cards, a work phone and a business email address, and treating people in a professional manner.
9) Get the right professional help. Just because you run a small business, it doesn’t mean you have to be an expert on everything. If you’re not an accountant or bookkeeper, hire one (or both). If you need to write up a contract, and you’re not a lawyer, hire one. You will waste more time and possibly money in the long run trying to do things yourself that you’re not qualified to do.
10) Get the legal and tax issues right the first time. It’s much more difficult and expensive to unsnarl a mess afterwards. Does your business need to be registered? How will the form of business you choose affect your income-tax situation? Learn what your legal and tax responsibilities are before you start your business and operate accordingly.
