You’ve got your business idea and there is a market for it. You know that because you’ve done your research. Will it be a lone venture or a partnership? Both have their draws and their restraints, such as half the work-load meaning half the profit. For a first-timer in business, a partnership may be advisable, broadening the skill sets and doubling the number of heads to tackle any issues that may arise. However, for now we’ll assume you’re going at it alone, as a sole trader, not to doubt your popularity!
Research is essential. Not just into the market for your product, but also into the legal stipulations specific to your industry, which need to be adhered to. These can range from environmental factors to health and safety regulations. After thorough research covering all the ‘ifs, ands or buts’, and sorting out a name for your business, clarifying its availability with Companies House, you should consider funding.
Whether this be self-funding, or through a charity or scheme, a starting budget is crucial, enabling you to purchase essential equipment and advertise your product. An important source of advertising will be your website. Although this may not be a necessity from the get-go, it can help spread the word of your services whilst also offering the possibility of direct sales. If you are unable to design your own website or pay a web designer, the widespread use of social media presents an effective temporary alternative. Seek advice from professional bodies, banks and universities to ensure you have the strongest possible support when beginning your business venture. Membership to unions and societies specific to your sector enable you to research into the nuances of your business, such as copyright issues and rates of pay.
Writing a business plan is central to a young project, helping you to prepare for the potential stumbling blocks you may face, as you develop your strategies and targets. A strong business plan is vital to securing funding, as it reflects a meticulously thought out project. Follow a template of a successful plan, covering an executive summary, business objectives, business description, legal status and licences, management, marketing strategy and plan, sales targets, financial requirements and forecasts, operational requirements, business risks, PEST (political, economic, social and technological) and SWOT (strengths, weakness, opportunities and threats), and evaluation. And breathe.
Now you have a clearly set-out business plan, you can promote your services. There are many excellent opportunities for this. As mentioned, social networking is a great way of reaching a large audience, though many people will like to put a face to the name, and therefore networking at business fairs and exhibitions offers an ideal opportunity.
Throughout your business venture, it is imperative that you keep accurate accounts, as HM Revenue & Customs will use these to determine your tax bill. Receipts and bank statements should be carefully filed, as tax-related documentation must be kept for seven years. You should complete annual Self Assessment tax returns, and missing deadlines could result in fines.
There are many things to consider when setting up your own business, but with thorough preparation, a strong business idea (kind of a prerequisite!) and commitment to the cause, there is nothing stopping you from rivalling Lord Sugar!