Top tips for kick-starting your business
Posted by David Critchley in Finances on Thu, 24/03/2011 - 11:11
- How writing a business plan and understanding your finances will take you one step closer to embarking on a successful and safer venture
- Support and advice from those around you is essential when setting up a business
- Alongside practical considerations, one should continue to look to the future and maintain a passion for your business
David Critchley discusses the key considerations when starting up a new business; showing how planning and passion, in equal parts, are invaluable assets to entrepreneurs everywhere.
Coming up with a business idea and a company name starts with a moment of pure inspiration – a ‘eureka’ moment if you will! However there is an awful lot more to starting a business than identifying a niche market. Considering only one fifth of businesses survive longer than five years it’s important to make sure you have done all you can to be one of the ‘lucky ones”.
Putting pen to paper
Even as you have the idea bubbling away it’s important to give yourself a reality check and put pen to paper. Write a brief business plan defining your chosen market and how you plan to establish yourself within it. Identify key areas such as your Unique Selling Point (USP), key competitors and market opportunities.
Next it’s time to get an action plan. Establish an estimated time schedule and make sure you always account for the fact that things are guaranteed to not always go to plan. Contingency plans can be your saving grace in moments of panic, as you’ll have a well thought out plan B to turn to.
Sometimes it’s so easy to get excited about a business idea that you may overlook just how much work goes into setting up a successful business. This is not to suggest that having high-flying inspirations and goals is a bad thing because it’s likely that this is the mentality that will give you the drive and creativity to step away from a standard 9-5.
Money in the bank?
The next thing to consider is getting your finances in order. You need to have a clear understanding of both your assets and liabilities and determine where, if required, you need to get funding from. Approaching a bank for business loans is a common route but there is also an abundance of local business grant schemes designed for each industry sector and every project scale. With a clear idea of where your funding is going to come from and how you are going to use it, you are one step closer to embarking on a successful and safer venture.
When you understand your own finances, it should give you a better idea of how your start-up should begin. Do you have the money to buy a shop front; moreover do you need one? Perhaps an online presence is the most suitable route to market for the type of business you have in mind. It may also help to cut out any unnecessary overheads.
Think about the investments you may want to make in the latest technology. Nowadays it’s both affordable and accessible for all businesses of all sizes, and can be a great equaliser between larger organisations and SMEs. From websites and social media to smart phones and unified communication systems, the right technology will make your business easier to run and provide platforms for growth and development.
Get support and advice from those around you
Once you have your financial resources in order, the next step is to prepare those around you. It’s not unusual when starting up a business that your professional and personal lives will merge into one. Reduced spare time, long working hours, weekends in the office and financial uncertainty are all prices you have to be willing to pay, at least in the short term. Spouses and close ones need to be conscious of these demands and be willing to support you all the way.
You may also give some time to consider if you wish to start-up alone or if you’d like to bring in a business partner. In general, there are many benefits to not starting a business alone as sharing the highs (and the lows) with the right partner will enhance your chances of success.
Speaking to the right people and organisations is also a fantastic way of building up a bank of knowledge (and contacts) from industry gurus and people who have been in your position before. For financial advice, try and consult with similar businesses to find out what paths they would recommend taking. There are also associations such as Business Link or the FSB that offer general advice ranging from legal considerations when choosing a company name through to how best to market your business.
Dream BIG
In saying all of that, having a sound business plan does not mean that you are guaranteed success but it will act as your guide and provide you with some of the vital structure that you’ll need. In fact I believe the key to starting a business is actually having the fervour for what you’re doing and the impetus to put your all into it.
Look to the future and think about the development of your brand. Even for the smallest of businesses, knowing who you are, what you stand for and being able to vocalise it is of paramount importance. Set out where you may expect your business to be at the end of the first year and even ten years down the line. Will you want to commit to sustainable business practises? How many people will you expect to hire in the future to facilitate growth? All of these considerations, no matter how far away they seem, require deep thought.
It’s well known that starting a business is a great adventure which, when done well, can be both lucrative and unbelievably satisfying. But I hope these top tips remind you that it’s equally important to allow yourself creative outputs and inspirational goals, as well as allowing time for thorough planning and attention to the finer (and perhaps less exciting) details!
David Critchley is UK&I director of small and medium enterprise at Cisco.
- 3415 reads
- login or register to post comments
- Add to a social bookmarking site
Dragons' Den judges James Caan and Deborah Meaden and social entrepreneur Karen Darby are some of the successful entrepreneurs who feature in our exclusive videos. 
Join our social media discussion group and share your Twitter username with other BusinessZone members. 
We've got lots of free books to give away; all you've got to do is review them!