UK government data reveals that in 2020 there were 390,000 business births. However, there were also 316,000 business deaths, which just goes to show how tricky it can be to navigate the landscape.
There are plenty of perks to running your own enterprise. As well as the potential financial gains, it gives you the opportunity to act with autonomy, shaping the company in your image while enjoying the freedom of not having someone else to answer to.
But there are also plenty of challenges, so what steps can you take in the beginning to give yourself the best chance of being a success?
Do your research
It’s not advisable to launch a business on a whim. You need to make sure you’re going to offer a product or service that there’s a demand for and to do this you need to conduct thorough market research. That could include using focus groups to get an idea of how your offering might be received, as well as analysing your competitors to see what they’re doing and whether you can take any lessons from that.
Have a plan
You also need to create a solid business plan that lays out the framework for how you intend to proceed. This should encompass every facet of the business, including overheads, expected returns, marketing strategies and growth targets. You’ll also need to register your business and make sure you have the necessary paperwork in terms of insurance and licences, if applicable.
Find the right funding
If you need some capital to help you get started, a business loan can prove a viable solution. There are plenty of options available, so it’s vital that you do your due diligence and compare the various products to make sure you are satisfied with the length of the repayment term, interest and overall costs of the finance.
Use a mentor
It can help to call on the advice of an experienced operator – preferably one who has enjoyed success in your chosen field or sector. Ultimately, any decisions should always be yours but sometimes it can prove valuable to have an outsider’s opinion and give yourself a different perspective.
Set realistic targets
Your idea of success may be different to someone else’s, so you need to set goals that are applicable to you and your situation. It’s important that these are realistic, too – it’s very unlikely that you’re going to make millions of pounds’ worth of profits in your first year, for example. Instead, aim to build steadily, establish yourself and reassess periodically.
