If you’re thinking of starting a business, it can be very exciting as you begin this new chapter of working towards being your own boss and staying in control of your own income. However, with nine out of ten startups failing in their first year, it’s certainly worth considering the various pitfalls that many small businesses encounter before you start investing your hard-earned money.
For many people, starting their own business and working as their own boss is one of the biggest dreams they have, but not everyone succeeds. To make sure that your business is the one in ten that does well, it’s important to keep some key considerations in mind. It’s certainly worth thinking about:
Tip #1. Your Target Market:
Before you do anything, it’s important to think about who your target market is and what they will want from your business. These people are the ones who’ll be buying your products and services and keeping your business in profit. Imagine your typical customer – think about their gender, age, their income, where they are based, and the kind of products that they enjoy. Why would they buy from you and not from your competitors?
Tip #2. Location:
Before you set up shop, it’s certainly important to consider where your business is going to be located. The location of your store will be important to both your employees and your customers. How easy it is to get to? Is it located close to motorway junctions and public transport links? How much parking is available? It’s all too easy to simply see an empty shop in your high street and go for it but take your time when it comes to thinking about your location because a bad choice can have disastrous effects on your company.
Tip #3. Buying or Renting:
Once you’ve found a shop that’s perfectly located, it’s time to consider whether you’re going to rent or buy the premises. In some cases, the decision made for you – for example, if you’ve found your dream premises but there’s no option to purchase it so you’ll have to lease. There are advantages and disadvantages to both; renting is usually cheaper upfront and easier if you want to relocate, whilst buying means that you have more freedom when it comes to making changes to the property. National commercial law firm Harper James Solicitors state that commercial property is complicated and will almost always require legal advice so it’s important you seek advice for both purchasing or leasing. For more information on how to negotiate a lease or what assistance you may need go to; hjsolicitors.co.uk. Before you know it, you’ll be in an ideal location to start you business.
Tip #4. Your Business Plan:
Many people believe that writing a business plan is a waste of time but in most cases, it can be the best thing that you do for your business. Running a successful business means having a solid plan in place that you can use to track your success and make sure that you’re heading in the right direction. In addition, bear in mind that many investors, whether it’s the bank or an angel investor, will want to have a read through of your business plan before they part with their money. So, it’s certainly worth taking the time to outline your plan, including any potential business-specific pitfalls or challenges that you expect to face, and what you plan to do to overcome them.
Tip #5. Obtaining Funding:
Once you’ve got a solid business plan in place, it’s time to obtain funding for your new brand. This could be as simple as taking out a short-term loan to cover initial costs, or you might want to get a larger amount of funding from the bank. You could even pitch your business idea to angel investors; these people tend to have large amounts of money ready to invest in new business ideas in return for a percentage of your future profits. Bear in mind that getting a business loan from the bank isn’t always the easiest process; there are many roadblocks that could stand in your way, including the state of your own personal credit rating. In fact, more and more business owners are moving away from applying for bank loans and looking into alternative funding methods instead. It’s a good idea to take some time to research the different options before choosing one or more that works best for you.
Tip #6. Consider the Legalities:
It’s vital to make sure that everything that you do when running your business is above board and legal. This could simply be making sure that you are VAT registered with HMRC if you’re thinking of running a business from home, to making sure that your business premises are health and safety compliant and your employees are protected by employer’s liability insurance. If you’re unsure of what you need to make sure that your new business complies with all legal requirements, speak to a commercial solicitor who’ll be able to offer tailored help and advice.
Tip #7. Get the Right People on Board:
Last but not least, a business is only as good as the people who run it! If you’re considering hiring freelancers or employees to work alongside you whilst growing your brand, then it’s crucial to take the time to make sure that you have the right people on board. Spend some time during the hiring process to make sure that you are matching the right people to jobs. Above all, it’s important to look for people who are passionate about your brand and ready to be the public face of it in the wider world. Although nobody will be quite as passionate about it as you since you are the business owner, getting employees who really care about the business and how well it does can make all the difference, particularly during the early stages. Look for people who will be loyal, committed, and dedicated to your brand.
Starting a business can be an exciting process for anybody, but there are many potential roadblocks and issues to take into consideration. Careful planning, choosing the right location, and getting the right people behind you is essential for the success of your brand.