Deciding to start your own company is not an easy one. Potentially leaving behind a stable job for a chance at success can feel a bit scary. However, there are ways to put your startup on the path to success.
Here are some tips to help you through the initial setting up process and start your financial journey off correctly.
Understand the market
Before you can get your new venture off the ground, you need to be sure that there is a space for you in competitive markets. Market research is a valuable tool from day one of your planning process. It will indicate whether your business will have a space in the local community or not.
There are several ways you can conduct your own market research. Start by looking into local companies offering the same or similar products or services. You may notice something is missing. Next, ask potential customers in focus groups whether your offerings are something that would want or need.
Legal requirements and business structure
How you structure your business is up to you – there are benefits and downsides to all the different types. Take some time to look into the difference between a limited company, partnership and sole trader. The main difference is liability should something happen to the company as sole traders can be held personally responsible, but it does go deeper than that.
Next, make sure you have all registrations, permits and qualifications to conduct your chosen business. Insurance is another key document, especially if you are going to be working around the general public.
Create a solid business plan
A solid business plan is the foundation of any good business, so make sure yours is looking sharp. Don’t forget to include sections highlighting your market research as well as all financial planning.
Don’t forget that you don’t need to do things traditionally. Taking on all the roles of running a business can often lead to burnout or highlight gaps in your skills. Outsourcing, especially initially, can be a wise decision. This is especially true if you need niche expertise such as help from hospitality accountants with payroll experience.
Business plans should look at the immediate future as well as have projections for the next one, two, five and ten years. This shows you have thought about scalability and growth and that you want the business to continue long into the future.
Funding your business
There are several options when it comes to funding your business initially. Self-funding and using your savings is the obvious option but you don’t want to leave yourself without a financial cushion or the ability to live.
Another viable option is crowdfunding. Putting your business plan on sites such as Kickstarter or Crowdfundr may give you the revenue boost you need to begin developing products and taking them to market.
Loans are also an option that many businesses choose to take advantage of. If you do go down this path, remember to account for repayments in any future financial planning and budgeting. Having a solid business plan can help to secure loans so the two go nicely together, emphasising why it is important to work on your business plan thoroughly.
