James Anderson.
Many a new business venture’s launch coincides with a new year. The FSB’s James Anderson offers some advice on the first steps.
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SEEING your great ideas come to life and turning your passion into a successful business can be exciting and the New Year is often a time to start making your business dreams a reality. But where to start?
At the Federation of Small Businesses, our website is full of helpful guides which cover a whole range of support that businesses need. Below is a brief summary of seven practical steps which will help you take the first steps towards becoming your own boss.
Step 1: Do your research.
Whether you have spotted a gap in the market or you are ready to make your side hustle your day job, it is important to understand the industry you will be working in.
Before you jump straight in, take the time to step back and do some market research. Which sector are you going into? Who will your competitors be? Who is your ideal customer?
Imagine a typical customer journey and how someone would go from learning about your business to becoming a paying customer. Put yourself in their shoes and think about how someone may engage with your business.
Step 2: Decide on your structure.
When it comes to setting up your business, you have a number of options. The structure you choose will have an impact on how much tax you pay, the level of risk to your personal assets and your access to business finance.
The six most common business structures are:
- Sole trader (Self-employed).
- A limited company.
- A business partnership.
- A Limited Liability Partnership.
- A social enterprise.
- An unincorporated association.
Step 3: Brand your business.
Your name and brand identity say a lot about who you are as a business, especially when you are just starting out. First impressions take just seconds but they can influence a customer’s relationship with your business in the long term.
Being instantly recognisable helps to build your brand identity and establish trust in your business. Use the research you did about your industry, competitors and market in step one to help you decide on a name, logo and branding that fits your vision.
Step 4: Write your business plan.
A business plan is a written document that includes a brief description of your business. It looks at the objectives, strategies, sales, marketing and financial forecasts of your business.
It is a useful summary of your business that will help you to:
- Visualise your long- and short-term goals and objectives.
- Measure your progress and performance.
- Clarify your business idea or proposal.
- Spot potential problems before they happen.
- Understand how your business can grow.
Step 5: Figure out your finances.
Running your own business means you will be responsible for your new venture’s finances. It can be daunting but balancing your books and making sure the numbers add up is crucial.
Step 6: Work out where you are working from.
You have done your research, ticked all the legal boxes and now you are ready to find a home for your new business.
Whether you plan to rent an office space, open a shop, or run your business from your kitchen table, you will have a few things to bear in mind such as your insurance, taxes and business rates.
Step 7: Market your business.
It is time to find customers and secure those all-important sales. The world of marketing and social media can seem overwhelming but there are four simple places to start your online journey:
- Create a marketing plan.
- Launch your website.
- Level up your social media.
- Get noticed online.
For a more in-depth version of this and other start-up advice, click here.
James Anderson is development manager for the FSB’s South Central region.
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