Starting a new business is relatively straightforward. Keeping that business in good health for years is very difficult. Around a fifth of new businesses fail within the first year, and more than half have gone under after three years.
To avoid becoming part of this unhappy statistic, then you’ll need to plan appropriately. Let’s take a look at a few of the tips that will help you do this effectively.
Know your Market
It’s important that you understand the market into which you’re going to be selling. What do your would-be customers want, and is there enough demand to make your business viable? What is the local competition like? You can glean this information through things like surveys, focus groups, and competitor analysis.
Legal Requirements
Businesses can be structured in several different ways. You might operate as a sole trader, or as a partner. You might limit your liability by setting up the business as a limited company. Whatever your choice of structure, you’ll need to make sure that you’re appropriately licensed and registered. The details will vary depending on the kind of business you’re doing. A pub, for example, will need to be licensed to serve alcohol.
Fortunately, there are plenty of online resources available to guide you through the process. A good starting point is the government’s website.
Create a solid business plan
Your business should be informed by a solid plan. This doesn’t have to be a long or elaborate document, but it should bring together all of the information you’ve gleaned from your market research. This is a chance to reason through that information, and analyse how you’ll make the business a success. You can ultimately use this plan to secure funding for your venture.
Your business plan should include key areas of spending, like payroll software. A people first platform for payroll will help you to limit your administrative costs, pay employees promptly, and drive down staff turnover.
Funding Your Business
How are you going to get your business off the ground? You’ll need an injection of cash. This should be enough to cover all of the equipment, marketing, and staff costs. You can raise this money through loans, outside investment, or even crowdfunding. There are even special government sources of finance that apply to busineses of a particular kind.
If you’re pitching to investors for the first time, the process might be slightly daunting. Make sure that you’re adequately prepared, and know exactly what you want to say. Then, think about questions you might be asked.
Build a Strong Online Presence
Even if your business is wholly offline, it’s worth maintaining an online presence. This will allow you to participate in conversations on social media, and ultimately get the word out to your would-be customer base. Having an SEO and content strategy can drive search traffic in your direction, and ultimately lead to more conversions. If you’re an online business, then this will matter even more.
Networking and support
Other business leaders and entrepreneurs can provide a valuable source of information. By networking with these people, and joining groups, you’ll gain insights that might otherwise elude you. There are several UK-specific support organisations, like Chambers of Commerce and Enterprise Nation, that might be of particular interest to specific kinds of business.
Don’t expect yourself to pick up everything without guidance. Through mentorship and industry events, you’ll make yourself a better business leader – and everyone on your payroll will benefit.
