Tips for starting new business

Re: Tips for starting new business

Hello
Do what you love. You're going to devote a lot of time and energy to starting a business and building it into a successful enterprise, so it's really important that you truly deeply enjoy what you do, whether it is running fishing charters, creating pottery or providing financial advice.

Start your business while you're still employed. How long can most people live without money? Not long. And it may be a long time before your new business actually makes any profits. Being employed while you're starting your business means money in your pocket while you're going through the business start up process.

Don't do it alone. You need a support system while you're starting a business . A family member or friend that you can bounce ideas off and who will listen sympathetically to the latest business start up crisis is invaluable.

Get clients or customers first. Don't wait until you've officially started your business to line these up, because your business can't survive without them. Do the networking. Make the contacts. Sell or even give away your products or services. You can't start marketing too soon.

Write a business plan. The main reason for doing a business plan first is that it can help you avoid sinking your time and money into starting a business that will not succeed.

Re: Tips for starting new business

Why are you starting up a business?
Setting up and running a business is a time consuming task - you need to be dedicated and focused and able to structure your time in order to be successful. The rewards of starting up your own business can be great, but think carefully if you have the attributes and right sort of personality to cope with going it alone.
Company Structure
You will need to decide what business structure you will trade under (sole trader, limited company, LLP or partnership) and what obligations and responsibilities you will have as the owner of a new business. Read more about these business structures.
Skills
Identify your skills and particularly your weaknesses. Be honest and ask friends and colleagues for input. If you are less hot in certain areas, hire people with complimentary skills or seek professional advice when you need it.
Funding
Even if you have the best idea in the world, you are unlikely to make a killing instantly. Be conservative with your funding estimates and either save enough money to keep you going while the business goes through its initial stages, or present your bank manager with a well thought out business plan and request sufficient start up funds. You can read about all the available funding options in our business finance section.
Competition
Never underestimate it. Thoroughly research the competitors in your chosen industry. Identify any weaknesses they may have and try to ensure your product or service is a cut above theirs. Competition is a very healthy thing, but you need to do constant research and never be complacent.
Marketplace
Make sure that there is a market for your product or service. Just as Texaco wouldn't build a petrol station next door to two others, a startup business should ensure that the market for buyers or users is strong in the area he intends to set up in.