I want to start a business but don't know where to begin
Sometimes, going self-employed can feel like the right way for you; however, it can be difficult knowing where to start.
Don't worry; you're not alone in feeling this way, and there are several different ways you can overcome it.
1. Coming up with a business idea
There are no wrong or right ways to come up with an idea. Just as there are no wrong or right ideas, as long as theres a market available for your business.
To start, consider the areas you have experience in. For example, if youve worked as a jeweller, you may want to consider starting your own line of jewellery design. Or if youve started a web design hobby, it can be tempting to turn it into a paying gig.
If this doesnt appeal to you, or you feel like you dont have enough experience to go it alone, think of the market around you. Is there a gap in the market that you could fill with a unique product idea or business model?
These are examples of people taking the plunge with their own businesses, but what if they don't feel that comfortable with their idea but still want to work for themselves?
People who have no idea what to do apart from working for themselves can look at buying into a franchise. This allows them to work for themselves but use a recognised brand to attract customers. The British Franchise Association (bfa) has many useful links and tips if you think that a franchise is the way to go.
2. Can you make your business work?
This comes down to one main point; is your idea viable?
Before you even think of starting your business, you need to check the viability of your idea. This checks that customers will want to buy from you at the prices you need to charge so you can make a profit from the items.
If you feel as though you have tapped into a lucrative market that no one else has then you can pretty much plough on as you'll be the only one there doing it. However, you can still benefit from market research to ensure you are setting up in the right place. The more feedback you gather, the more informed you can make your decision. Just remember not to get blinded and only look at the positive feedback, you need to take all feedback into account.
Now, look at the competition in your area. This can be local to you or even distance sellers that cover your market. You need to look at the size of the competition and whether or not you can beat them on price (this may not be easy to gauge in some markets). Also, look at the services they offer and how they differ from your own. Remember, if they're failing in an area, you can use that to avoid making the same mistake.
Now work out a business plan. By having your plan in place before you start trading, you can look at the ideas your business is based on and change anything you don't like the look of before you start trading. This means you don't waste time, effort and money on an idea you could have just not started with. This can improve the chances of success with your business.
3. Consider what you're bringing to the business
Your new business depends on you to run it. You can employ others but only you can have the vision of where to take it. Imagine it like a baby - you're the main carer, you can employ others to look after your baby when you're not around but it's you who has the final say in how it will be raised. Your personal experiences, your business experience, your time, your money, your skills, your attitude and your commitment will all come into play when you start up. You might have the greatest business idea in the world, but without your attributes, it'll never take off. Sorry.
So what can you do if you're lacking? There are several options, such as starting a partnership where each person brings their own unique skills into the business. Alternatively, you could look at training to gain the knowledge yourself. There are plenty of resources out there if you know where to look - this link from the Start Up Donut has several useful links on it highlighting where you can seek help.
I'm still unsure
It's ok to not know, but sometimes you just need to take the plunge in order to see for yourself what would happen.
Ready to take the plunge into business? Become a limited company today.
Useful Links
If you need help finding an accountant for your new business then check out our sister site FindanAccountant.co.uk.
And if you need help with your day-to-day accounting then check out our other sister site QuickFile.co.uk.
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