Studies show that there are 500,0000 start up businesses in UK every year. Many of them survive, and grow, most of them fail. You know a small business can be a solo trader or work with a business partner. But what do you need to know to start your own business.
Have an idea. Test your idea
You need an idea. Then based on that idea you will do lots of research. Find out about your market. Your market, is your customer and it’s needs, for the product you selling or the service you offering. So do you really think you found the product to sell and make money. If not sure change and develop your idea. Spend more time on that idea. Talk to your potential customers. Get the feedback. Are they going to pay real money for your product/service. How much are the willing to pay. Think about the price. Also think about competitors. If there already people selling that product you need to do something different, so you can attract your customers.
Find your partners and suppliers. It depends on you if you want to work with a partner or just a sole trader. In that case you will be your own boss, manage your time, your money, your other resources. Then you need to research for your suppliers. Find out who are best and trustworthy suppliers and negotiate the prices. You also agree and set up the payment terms. Step by step you build a relationship with them.
The next step you register your business. You need a name. Make sure is a attractive name. The name does make a difference. After that you register your business for tax.
Usually when you start up your business you be investing not only your money, but you be willing to put all your effort and time. Lots of start up’s find it difficult to fund their business. ( you might just lost your job and have no funding at all). There are different sources of business funding from banks to government schemes and private lenders.
Business loans from banks are available if you really will provide them with a realistic business plan. You need to show them a realistic forecast for your cash flow. Also you have to prove them you will be able to pay the loan back with interest. Some banks maybe will be asking for security against your loan like your house, your car. Then you have to think how much you are willing to risk.
You might be able to get help for your business finance from government backed schemes.
Otherwise you have to consider getting funds for your business, from private lenders and investors. Might the interest on them loans will be higher and maybe some of them willing to buy shares from your business. Like business angels, formed by wealthy individuals who invest on start up businesses. Funding Circle is a business bank a backed government scheme who lends from £5000 to £1,000,000. to private businesses. The process of getting a loan will take less than a week if approved.
Insure your business
If you are thinking of employing staff for your business you need to know your legal responsibilities you have like pay, tax, insurance and you need to register with HMRC as an employer.
Then you must get insurance for your business, make sure you find an authorised insurer.
Accountant, business advisor, legal advisor
You need an accountant which will help you on financial side and growth of business. You also need to work closely with your business advisor. For legal issuses like if wanting to sell shares of your business you will need a solicitor. You have to agree on payment terms with all of them.
Build a website for your business
It is important you build a website for your business. It will help grow your business. It also help you build a relationship with your customers, promote sales etc.