Key factors to consider when starting a business
25 May 2023
Setting up a new business is not merely about innovative ideas or immense passion. It also demands careful planning and research.
Running a thriving business is not without its obstacles, however, the potential for rewards makes it a journey worth undertaking.
It is all about giving your business the best possible chance for success.
Understand your market
The first consideration should be what market you are planning to enter. Understanding the market is not just about identifying a gap or a problem that your product or service solves.
It involves a deep understanding of the target customers, their needs, preferences and buying habits.
It also involves studying your competition, the pricing strategies in the market and the barriers to entry.
Develop a strategic plan that outlines your aspirations and the timeframe within which you expect to achieve your goals. It is important to be realistic with your plans and goals.
Determining the structure of your business is crucial when getting started.
This could mean being a sole trader, incorporating as a limited company or forming a business partnership.
Your chosen structure will have implications on your responsibilities as a business owner, such as required documentation, tax obligations, how you take profit out, liabilities and handling losses.
Build a strong team
Behind every successful business is a competent and passionate team.
A business needs individuals with a range of skills – from sales and marketing, to finance and operations.
Additionally, it is important to create a positive work culture that encourages collaboration, innovation and professional growth.
However, employing talented individuals also creates additional payroll requirements, which will need careful management.
Outsourcing this work to experience and knowledgeable payroll experts could be extremely beneficial.
Marketing and promotion
If you have a great product or service, it is essential to showcase it effectively.
Formulate a marketing strategy that may encompass networking or personal selling, email marketing and social media campaigns.
A quality website
A quality website is essential in today’s market. It acts as your virtual storefront, engaging visitors and building credibility.
It effectively communicates your services, reaching a wider audience.
A responsive, user-friendly site enhances accessibility and boosts online visibility, customer engagement and overall success.
Finances and accounting
Creating a separate business bank account is the easiest way to differentiate your personal and business finances.
Although managing your own finances and accounts is an option, leveraging the expertise of a professional accountant can be beneficial for legal compliance and optimising tax benefits.
There are various methods available to secure financing for a new business, such as:
· Bank loans
· Venture capital
· Loans from friends and family
· Angel investors
Acquiring finance often requires that you can show investors or lenders a clear business plan and demonstrate the financial health of your business.
Using the services of an accountant can help you to prepare accurate balance sheets, sales and cashflow forecasts, as well as delivering deeper business insights that can help you to secure funding.
Starting a business requires careful consideration of key factors that can greatly impact its success.
By addressing these factors thoroughly, aspiring entrepreneurs can increase their chances of building a thriving and sustainable business.
Need advice about starting up and running a small business? Get in touch today.