Start Your Own Business in 7 Simple Steps
Starting a business requires a change in mindset and a clear plan of action. Here are the key factors to consider to start your own business.
1. Change your mindset
When you run your own business, you need to be motivated, determined and above all resilient. Deciding to start a business is relatively easy but keeping it going and overcoming obstacles is another thing. If you are used to working 9 to 5 and having someone else tell you what to do, then you need to change your mindset. Take responsibility to get things done and commit to focussing on the tasks needed to run your business.
2. Research your idea
Once you have a business idea carry out market research to determine if it is viable and will make money. Whether you are selling a product or delivering a service make sure that there is a demand for what you are offering. A good starting point is to determine what problem you are going to solve for customers. You can then conduct your research to identify customers that will buy from you and competitors that are already offering something the same or similar. Establishing if there is a demand for your business idea will save you wasting time on a product or service that nobody wants.
3. Write a business plan
The next step is to formulate a business plan outlining how you are going to launch and run your business. Think of the business plan as a blueprint or route map describing what you are going to do, how you are going to do it and by when. The plan should identify your customers, competitors, pricing policy, marketing strategy and the finances needed to get started and run the business. Writing down the key elements of your business will help you to keep track of what you need to do and identify any areas of weakness that you need to address or opportunities that you can exploit.
4. Choose a business name
Coming up with a name for your business is important but can be particularly difficult. Ideally it should be unique, memorable and explain what you do. It is worth researching business names that are short and have a domain name available to purchase as well. It can often help to develop a list of business name ideas and then obtain feedback from potential customers as to what they think. It is also worth checking your business name to make sure that no one else has the same name already. Choosing a business name is an important part of creating an effective brand so it is worth spending the time getting it right.
5. Work out your finances
Keep a track of all your start-up costs and set a budget for what you need to spend. You will need to consider any equipment, insurances, marketing and staffing costs that you may need. It is important to set a budget and build in a contingency fund as there are often unexpected costs during the start-up phase. It is likely that you may not receive an income for two to three months as you build the business so this needs to be built into to your financial projections. As well as your costs you should also produce projections showing what your likely sales income could be. A cashflow forecast is the ideal way to do this.
6. Decide on the legal structure
Starting a business as a sole trader is a relatively straight forward process, however, it is worth considering if it is the right legal status for your business. Other options include a Partnership, Limited Company or even a Community Interest Company (CIC) if your business is being set-up for a community benefit and not just for private advantage. Depending on the type of business you plan to start and the work you are going to do each of these different legal structures has different implications in terms of tax, management, financial liabilities, and the authorities or organisations that you need to notify.
7. Take action
One of the most important things to do when starting a business is to act. Whether this is to start researching your idea, writing a business plan, deciding on a name, working out your finances or approaching customers to start selling your product of service. If you do not take action your business idea will remain just that, an idea that never turns into anything. Take the first step to move forward and do not be afraid to ask for help. Consider using 1-1 business coaching if you need support, guidance, and accountability to help you succeed on your business start-up journey.
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