Deciding to start your own business can feel like a leap of faith but being prepared for the steps you will need to take can ameliorate this lack of confidence.
With a wave of young people aspiring to become entrepreneurs, along with individuals with established careers deciding to go it alone, many people may be evaluating a start-up.
Whilst the pandemic did have a damaging effect on some businesses, the fourth quarter of 2021 saw the number of registered businesses increase by 0.4 per cent, according to the ONS.
So, what do you need to know before starting your own business?
Before even consolidating the business idea, it is important to recognise your motivations behind starting your own business – as it is not without its challenges!
The next step is to build upon the business idea, which will cover what good or service you will provide, along with who the target market is.
Once the idea is established, it is time to research…
You should research similar goods or services that are being offered to see if your business would fill a gap in that market, and to get a clear idea of the competitors.
Undoubtedly, the question of how you will finance your business idea is going to cross your mind, however before applying for funding you must have a thorough business plan in place – especially if you seek external investment.
This business plan should compile all the aforementioned research in order to inform decisions such as which Key Performance Indicators (KPIs) you should monitor and growth aspirations.
With the funding dilemma, it may be useful to have an advisor on hand, such as an accountant, to explore your options.
Some of the potential funding opportunities could include:
- Self-funding (should it be available)
- Taking out a bank loan – bear in mind that your credit rating will be used to inform this decision
- Government grants – for some ventures, there could be funding available from the Government, particularly with the focus on the Levelling Up scheme
- Equity investments – these can be from people you know, crowdfunding platforms or angel investors
For support with related matters, contact our expert team today.