7 Steps To Starting A New Business!
Starting A Business Can Be Easier Than You Might Think!
Many of the blogs and websites that exist regarding setting up a new business seem to be centred on creating the next fortune 500 company. Filled with marketing and finance jargon that seems like you need an MBA from Harvard just to read the article.
Before we get into the exciting bits of starting your new business venture and talk about the details, it’s important to know a few facts to motivate you on your journey.
- Small to medium sized businesses account for a whopping 90+% of UK businesses!
- At the start of 202 there were more than 5.9 million small businesses in the UK.
- In the 2018/19 tax year, more than 600,000 start-ups were founded.
These facts just prove that with the right knowledge and unparalleled motivation you can form a fantastic and successful start up.
Conduct Market Research
Market research is a fancy way of saying ‘what’s popular around my area for businesses?’ or ‘What do people like to spend their money on near me?’.
Market research will show you if your start up will become a profitable company. This is a way to collect knowledge about potential clients and companies in your market. To find a competitive edge for your business, use this information.
A good way to start with market research is to ask yourself these questions. Then ask the people close to you. Really get a feel for whether there is a place in your area for your business venture:
- Market Size: How many people would be interested in your products/ services?
- Demand: Is there a desire for your products/ services?
- Location: Where do your customers live? Is there a market for your products/ services in your area?
- Economic Indicators: Can you make money in your area from your products/ services?
- Pricing: What can you charge & how much are customers willing to pay?
- Market Saturation: Are there similar products/ services being sold in your area?
Write Your Business Plan
This doesn’t have to be complicated. Of course, the more detail the better but just get your ideas down on paper and ask yourself the hard questions.
Your business plan is the basis for your company. It’s a blueprint for constructing, running, and improving your new business. You will use it to persuade others that it is a smart decision to pursue.
Traditional Business Plan
If you are very detail orientated & want a complete strategy, or want to apply for finance from a bank, you can choose a traditional business plan format. Choose the areas that make your market and needs the most meaningful. These pieces are combined in traditional business plans.
Tell your reader briefly what your business is and why it’ll be successful. Include your mission statement, product or service, and specific details about the management, staff and location of the company (if any). Financial information and high-level development strategies may also be provided if you plan to seek funding.
Your company description should provide information about your business. You should go into detail about the pain points your company solves for your customers. Be very specific about how you’re going to go about solving their problems using your products/ services. Write about who exactly your company serves, whether that’s consumers, a local organisation or even other businesses.
What are your unique selling points? What sets you apart from your competition? All of these questions should be set out in this section. Explain your competitive advantages that will make your business a success above the rest. Really boast about the strengths you and your business have. Even if it isn’t a reality yet!
Again, don’t get bogged down by the jargon! This just means you should know the product/ service you’re selling just as much as you know who wants to buy them.
You’ll need to be well-versed in your industry’s outlook as well as your target market. Competitive analysis will expose what other firms are up to and what their strengths are. Look for patterns and themes in your market research. What are the strategies used by your competition? What makes it so effective? Is it possible for you to do it better? Now is the time to respond to these questions.
This is something to focus on later down the line when you’re a bit more established. This section will help you really nail down who’s in charge and how your business acts as its own entity.
Tell your reader how your business will be run and who will be in charge. Describe the company’s legal framework. Indicate whether the company is a C or S corporation, a general or limited partnership, or a sole proprietorship or limited liability company.
Using an organisational chart to demonstrate who in the business is in charge of what. Demonstrate how each person’s unique experience can contribute to the venture’s success. Consider including key members of your team’s resumes and CVs.
Here’s the really fun bit! Define exactly what it is you minted to offer to your customers. Whether you’re a local cafe, takeaway, pop up food stall or whether you sell sea shells by the sea shore. Now is your time to really show off what you offer.
Explain how these products/ services will benefit your customers, what unique selling points (USP) do you offer? Free wifi in your cafe or a better designed product? Define things such as your product’s lifecycle. What does that mean? Well, if you are a carpenter or you sell products, how long until that customer may require you again?
This is an area that most startups don’t feel is necessarily important when first starting out but this is the single biggest point of failure! Why? Well you could have the very best product in the world but if no one knows about it then it’s as good as useless.
You don’t have to be a marketing expert or so called guru to know how to market a business. Of course later down the line you’ll want to have a more complex strategy but for now you just need to understand how you shop and look for products/ services.
Write down where you’re going to advertise and sell your products first, then write down exactly how you go about doing that! Here’s some great places to start:
Where to sell products/ services –
- Your very own website
Where to advertise –
- Social Media
- Friends & family
- Poster & Leaflets
- Your Website
- Google Ads
- Social Media Display Advertising
Pick Your Business Location
This is fundamental to a local businesses’ success. If you’re primarily an online business for example a made to order print company such as our client CutLeaf Productions then your location isn’t as much of a priority. However, if you’re a cafe or restaurant like our other client Miss Jones Tea & Coffee Shop then as they say ‘location, location, location’ and that’s because your business needs the footfall to be successful.
Choose Your Business Name
Now you have almost definitely thought about your business name before this point! However, we have included it late in this blog for a reason and that’s because we’re nerds for search engine optimisation or SEO. We know what is needed to get your business ranking organically on Google and other search engines so potential customers can find you easily.
If you have a business name that has no relation to your industry then it will work against you online. This is classed as negative keywords. An example of this would be a brand name like ‘BeachBodies’ but your company sells cakes. Whilst you may have a level of sentimentality to the name, it doesn’t work for your business at all.
Open A Business Bank Account
When you’re first starting out, we recommend setting up a separate bank account to compartmentalise the income and expenditure of your company, keeping it separate from your own money.
Now depending on your business and industry this may be really important at first or not very important at all. If you are selling digital training plans or fitness coaching advice then legal requirements may just regard your qualifications. Whereas a cafe or bakery will require specific licenses and permits to sell food etc. A quick google search about your industry will cover this.
Apply For Licenses And Permits
As mentioned above make sure you have the correct licenses and permits in place in order to continue your company’s path to success. We don’t want anyone getting in trouble setting up their new ventures!
Contact Us For Information On Web Design & Marketing Your Local Start-Up Business
We are experienced web designers local to Torbay and we help startups and small businesses develop their online presence in order to enhance their brand awareness and exposure to new customers.
Your startup will need a website in the modern age which is where we can help. Contact us to find out how our bespoke and affordable web design services can help kickstart your new business venture digitally! Email us at firstname.lastname@example.org or discover more here.