How to Start Up Your Own Business

Starting up a small business is never easy. It’s a tough time for any new business to try and find their footing and grow in a market that’s been stagnant for a while. This doesn’t mean it’s impossible though, if you’ve got a great idea or a great product and a viable market that’s just waiting for your business to come along, then you could be onto a winner.

When starting your own business you need to keep a level head. It’s all too easy to get caught up in the whole excitement of the process. Success stories should encourage you to work hard but not to lose your head. There’s not much point in packing in your full time job and starting your own business on a whim. It takes time and careful consideration. 

First things first, you need to write a business plan. This will help iron out any kinks in the design of your product or service. You need to think where your business will fit into the grand scheme of things. Is there a gap in the market? If so, how can you fill it and why? Who are your competitors and what have they been doing to make their business a success? You’ll need to forecast where your business will be headed, and what sort of ground you intend your business to make over the next five years before you start investing any sort of money in your idea.

Once your business plan is water tight then it’s time to start getting some money together. It’s worth mentioning that there are different first steps depending on the type of business you are setting up. For example, for a Limited (Ltd.) company you would have to register with Companies House. This article is focussed on sole traders, and is not meant to be a step by step guide. You should always contact relevant specialists for advice. For more information on Ltd. companies, partnerships and charities please see further sources before proceeding. If you have all the finances that you need to get off the ground already then great. This is an ideal situation for the fortunate few who have enough cash to support their business. It’s unlikely though that this sort of capital will be available to many people, although this depends on the type of business in question.

If you’re in need of a loan to get your business up and running then it’s time go loan shopping. Putting your business idea forward to a bank manager in the hope of a loan is never easy, but the previous work you have already done on your business plan should help you out a lot here. Your figures will have to add up and you will need to have all the relevant information to hand in order to persuade the bank that you’re the right person, with the right business idea, the right attitude and the right tools to make the business work.

You’ll also need to set up a business bank account. Just adding your business loan into your personal account is not advisable. You need a clear definition between your own money and funds designated specifically for the use of your business. Setting up the nearest thing to free business banking is your best bet for managing your business funds. You’ll need a business bank account that’s suited to the way that you work. You’ll need to keep a keen eye on your finances at all times and get real-time, accurate statements showing details of your incoming and outgoing money. Getting a business bank account which utilises online banking allows you to do this with ease. You should also make sure that you speak to an accountant about taxes and VAT to be certain that everything is above board.

Once you’ve used some of your funds to create a prototype of your product or a start-up procedure for your service, it’s time to get your name out there to potential customers. Your business plan will once again come into play here. If you’ve done your research correctly you’ll know already who your customers are. Draw up a profile of the ‘perfect’ customers who will come back again and again to use your business and figure out where this group go to use services similar to yours. You’ll need to make some initial contact with your potential customer base. Offering a free service or a free trial of your product could be a great way of getting people interested in using your business.

One way to find out where this ‘perfect’ customer spends their cash is by researching online. The high street is slowing down while online business is booming(1). You’ll probably need to get your business online as soon as possible if you want it to become a success whether this is with a customer facing transactional website or through online advertising which could help you reach a wider audience. You don’t have to have the world’s most fantastic website. A good company website does three things – it gives the customer all the relevant information they could ever need about your service or product, is easy to navigate and encourages them to make a purchase or enquire about your services.

(1)http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8953597/Graphic-the-decline-of-the-British-high-street.html

Think about how your business can utilise social media to its advantage. The introduction of websites such as Facebook and Twitter has changed the rules when it comes to marketing your business, providing a whole host of opportunities to connect with potential customers.

This is by no means a fool proof guide to starting up your own business. The reality is that setting up your own business and creating income from your own ideas is like wrestling with a bees nest. It’s painful, and contains a whole host of risks, and chances are you will get stung in one way or another. But if you stick at it with a good plan of action and the correct tools you’ll be able to taste the sweet honey of success.