If you want to be your own boss and think you’d make an effective entrepreneur, take a look at this concise guide to establishing a business.
Think of an idea
First and foremost, you’ll need a good idea and this means spotting a gap in the marke. If you don’t get this right, you’ll struggle in all subsequent stages of the process. For help with developing business ideas, you can turn to organisations such as the National Enterprise Network.
Do plenty of research
Once you know what you’re aiming to do, it’s time to get stuck into some thorough research. For example, it’s helpful to identify potential customers and speak to them about whether or not your idea is meeting a genuine need.
If possible, make a basic version of your product or service and test it out on people. Also, find out what people are willing to pay. Make sure you take any feedback into account.
In addition, you’ll need to see if existing firms are offering similar goods or services and, if they are, think about what you can do differently.
Create a business plan
At this stage, you should start putting together a business plan that sums up the customer need you plan to meet and how your business will achieve this while making a profit.
The document should show the results of your customer research and explain how you can turn your idea into a viable enterprise. Business plans are vital in terms of providing you with focus and direction and as a means of convincing others of the value of your idea. This includes possible sources of funding and business partners.
Decide on a legal structure
Before you register your business, you’ll need to decide on a legal structure. Will you set up as a sole trader, a limited company or a partnership? The route you take will impact on the level of financial risk you face, the way you pay tax and how much control you have over the way your company is run.
Unless you have savings that will cover your initial expenditure, you will need to access funding from somewhere. You may be eligible for money under government-backed schemes and there is also the option of bank loans. Depending on the structure of your company, you might also be able to sell shares. Meanwhile, equity funding is worth looking into as well.
Choose the right premises
Another key consideration is the premises you operate from. If you’re starting off small, you might decide to run your business from home. However, if you are taking on employees, you will need a larger base.
One strategy that could save you money is to move into modular buildings. Firms such as Springfield offer portable offices designed to clients’ individual specifications. One advantage of these premises is the fact that they can adapt to firms’ needs. For example, additional modules can be added as companies grow.
By selecting the right business structure, funding, premises and so on, you can boost your chances of success.