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Posted December 7, 2015

5 tips for starting a business….

 

Many people dream of working for themselves but having an idea and turning it into a product or service can be a daunting prospect.

Here are five tips to help you turn your great idea into a new business:

Market Research

This is perhaps the most key point and often the one that gets overlooked in the excitement of starting a business. Make sure you look at your competitors, see what they are doing well and things that they could improve on. Approach potential customers and get a feel for what they want from your business. Finally, after you have done this research, consider carefully whether there will be a demand for your new business.

Plan

You need to develop a plan, where you see your business in three months, six months and even five years from now. More than half of new businesses don’t survive more than five years and many fail due to poor initial planning. It can be easy to get carried away with the passion of a new venture but as the saying goes “failing to prepare is preparing to fail”. Make sure you have thoroughly tested your product, have sufficient time to develop your business and have the finance in place to support your business.

Decide on the Legal Structure

After you have done your market research and prepared a plan, decide on which legal structure is best for you. The most common structures when starting a business are limited companies or sole traders, but there are many other options available to you all of which will have different pros and cons. You will need to decide whether you are intending to employ people and if so register as an employer with HMRC and decide how you will prepare your payroll and RTI submissions.

Funding

You will need to decide on how you are going to finance your new business, you may be lucky enough to be able to finance it personally. If not there are dozens of different ways to obtain finance from crowd funding through to a loan from a bank or family member, sometimes you can even get funding from the Government. You may wish to obtain funding through an Enterprise Investment Scheme – in which case you will need to satisfy certain criteria set by HMRC.

Suppliers

Finally, you need to source suppliers, people you can work with and who you want to associate your business with. Draw up a list of potential suppliers so you can get estimates and start to develop relationships.
We hope these tips will help you on your way to building a successful business, but if you need any assistance or want to discuss your ideas for a new business please get in touch.