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Thinking Of Starting Your Own Business

Thinking Of Starting Your Own Business

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Since the start of the financial crisis there has been news story after news story about workers losing their jobs. However, one in six startups are established following redundancy, so while it might seem like a financial nightmare at the time, it could be the perfect opportunity for a fresh start.

Thousands of people set up businesses and start working for themselves every year. The reason behind the decision varies between each person, but to succeed they’ll all need to have a few things in common: a good idea, a business plan, and plenty of motivation and enthusiasm.

Getting help

You might be starting up your own business, but you don’t have to do it all by yourself. There are plenty of advice services in the UK, many of them backed by the government, to give you the support you need.

New businesses are incredibly vulnerable, with thousands closing within 12 months of opening, so it’s worth taking the time to seek expert help, rather than just jumping in at the deep end.

Check out these links before you go any further with your business idea:

Do your research

Let’s assume you have a great idea and have spotted a gap in the market. Now you need to test your idea to see if there’s actually any demand for your product, otherwise you’re setting yourself up for failure.

You should identify your potential customers and talk to them about what they want. If possible, make a prototype of your product or service as you can ask them to try it out, get invaluable feedback, and even get an idea of price point.

If you’re idea isn’t completely unique, you’ll need to consider why people would choose your product over one that’s already established within the market. Are you providing something that’s better than what’s already available?

Write a business plan

All successful business have a business plan and actually use it. This document will summarise your target market, how your product meets the needs of your potential customers, how you’ll make a profit, and much more.

A business plan is vital for all businesses as it not only explains how your product or service is valuable, but can also help you get funding or business partners.

Thinking Of Starting Your Own Business

Set up the business

If you’re confident that your idea can be turned into a business, you’ll need to think about the legal structure.

There is a big difference between operating as a sole trader, a limited company, and a partnership, so carefully consider which is right for you. However, whichever legal structure you decide upon, you’ll need to register for tax with HMRC before you start trading.

If you need to employ staff, you’ll also have to register as an employer with HMRC.

Get funding

There is a lot of work to do as a startup before you can start earning money. To keep your business afloat during this time, you’ll need to have some funds in reserve. Unless you have your own savings, you’ll need to explore further afield.

The government has a number of schemes designed to support both startups and existing businesses, so that should be your first port of call. If you’re not eligible for any government funding, the most common alternative is a business bank loan.




About Jemma Porter

About Jemma Porter

Jemma Porter is an experienced content creator who has written for a number of online publications. A self-confessed penny pincher; she's often found seeking out the best personal finance deals.

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