I want to start a business, but I don’t know how
Relax, sit back and enjoy the ride, you are in safe, good hands and you have come to the right place. Our simple step-by-step guide will help you through the process. We will talk you through it or we are prepared to do it for you.
There are several critical steps to ensure that your new business venture will succeed. So lets get the ball rolling and see how to get your new business venture up and running. We assume that you are entering into a business area that you fully understand and know how to manage and run. Along the way we will put in place the necessary steps to ensure predictable results.
Choose the correct legal structure for your business. It is important that you understand any legal requirements for your companies incorporation . Are you going to be a Ltd, a Partnership or an LLP, a Plc, or a Sole Trader?. Do you understand the requirements of each type of organisation.
Identify your target market: . Ensure that you fully understand who your consumers are and why they would consider spending their hard earned cash with you. You need to understand what unique qualities you and your business provide that are better than those of your competition. This is commonly referred in general business terms as your USP or Unique Selling Points. Identify your target audience: Who you are trying to serve?. The top end, average or lower end. This is commonly referred to as Posturing or Positioning and it means to try to identify where you will find the greatest concentration of preferred consumers in your market segment.
Identify who else is targeting your potential market, what products and services they sell and what unique qualities they bring to their customers.
Create a preliminary business plan . Your business plan (irrespective of purpose) is also your recipe for success. It is the single most important element of your business. If you do not have a good plan, then it is likely that your business will suffer.
Identify any licenses, permits, trade affiliations and other legal requirements to start your business. There may be hidden costs such as membership fees, planning applications etc…
Look at the costs of a potential venue for your business and determine any related costs, such as refurbishment, legal fees, conveyancing and other costs.
Closely examine other startup costs, such as equipment, uniforms, stationary etc…
Consider costs such as marketing, advertising etc…Consider the dead time that your business must survive, whilst it is building up its trading relationships and customer base. This is time where you will still be liable for all of your costs, however, it is unlikely that your business will earn sufficient to completely pay its way and return a reasonable profit
Consider the time and effort you must give to your business in order for you to make it work.
Try to forecast the burn rate of your business. Burn rate is an expression regarding the inherent costs to run your business on an ongoing basis. These include such things as rent/mortgage, rates, electric, gas, salaries, cleaning etc.