The entrepreneurship journey is the most challenging and fulfilling journey one can ever experience. Starting a business venture offers entrepreneurs an opportunity to pursue their passion, express their ideas, and be innovative.
For entrepreneurs who are starting up, launching a new venture can be intimidating; however, with the right and solid foundation you can ensure that your business will succeed. Starting a business will require you to have the right skills that will make you resilient and sustainable in this ever-changing economic landscape. This guide will highlight the top essential strategy a new entrepreneur needs to start a business in the UK.
Top startup essentials that every new entrepreneur needs
A well-detailed business plan
Craft a well-detailed business plan that highlights every aspect of your business from ideation to business setup. Before your UK company formation, you should craft a business plan that highlights your business mission and vision since they define long-term achievements and how you plan to get there. Make sure your vision and mission are achievable, specific, and aligned with your personal values.
The business plan should also define how you will get clients for your service or products. It is difficult to know how you are going to achieve something before it is set up, but you will need to work with assumptions and market research to come up with a good strategy that will work. It should also highlight how you plan to acquire funds during starting up and even during business expansion.
This business plan gives an entrepreneur a blueprint to know where to start and not to miss anything. With a business plan, entrepreneurs will avoid mistakes and focus on specific and important necessary steps to make the business succeed. Make sure your business plan can be altered since the business landscape faces many changes. Your business needs to adapt to every change that comes its way.
Financial management
When starting a business venture, you will need funds. There are businesses you can start with little to no money, however, you’ll need funds to purchase business essentials. A well-detailed business plan can get you investors and partners who are interested in funding your business as a startup.
There are various ways you can fund your business such as;
· Savings: You can save up to start a business. Have a budget plan with an estimation of when your business will start making profits and save accordingly.
· Startup loans: Some banks offer loans to startups if they have a well-crafted business plan. The loans are repaid over a long period between 1 to 5 years depending on the amount of money you want
· Government grants: The government offers grants to startup businesses through several programs and initiatives.
· Financial support from friends and family: You can present your business idea to your friends and families who in turn can decide to fund your business.
· Crowdfunding: This is advantageous for new startups since they will get funds and partnerships which will create a business and a customer base making it a win for both your business and investors.
Any of the ways you choose to access funds to start your business make sure it will cater for your company until it starts making profits.
Business structure
There are several company structures an entrepreneur can use for UK company formation. To know the best structure that will suit your business will depend on various factors such as:
• Your business goals. What are your company’s future goals? Do you want to operate locally or expand globally?
• Liability. If your company has shareholders, how are their assets going to be protected from litigations and debts?
• Financial and tax implications.
• The complexity of your administration. How complex do you want your administration to be?
There are several company structures in the UK, but the most common ones are;
Sole trader: the owner of the business is in charge of running the business, keeping all the profits, but will be personally liable for the business debts.
Limited Liability: This structure protects the directors’ and shareholders’ personal assets from company debts or litigation. It also has tax benefits and separates your personal finances from that of your business.
Partnership: This structure is formed by two or more individuals or entities. They share profits and losses according to their agreement.
Choose a structure that aligns with your business goals and needs. Limited companies are favorable for businesses that want liability for their shareholders’ assets, take advantage of tax benefits, flexibility in profit sharing, easier access to funds, and many more.
Location
Decide where you want your business to be located and if it will be physically based or remotely operated. Many entrepreneurs are taking advantage of the evolving technology that has made working remotely a norm. However, some businesses cannot operate remotely. You will need to assess if your business needs a physical storefront or can operate remotely.
Virtual offices have made it easier for entrepreneurs to start businesses globally without the need to apply for a visa to incorporate and operate their companies.
For instance, if you are based in India and want to form a company in the UK, you can form and manage your company remotely using a London virtual office.
Market strategy
A strategic market plan is important for getting and retaining customers. Once you know where you would like to operate your business, come up with a market strategy on how to attract customers within the area you have chosen. Your market strategy should focus on your target audience, how you will utilise various marketing platforms such as social media, and websites, and focus on creating a strong and durable brand identity.
To attract the global market, you can come up with a market strategy that includes e-commerce platforms. Which platform will be favorable for your business, and how do you plan to design your online shop, inventory, and deliver goods to your clients? You can do your own research to understand the platform’s guidelines and how you can align them with your business.
Supportive network
When starting a business, you will need a supportive network that will positively impact your entrepreneurial journey. Through your supportive network, you can get mentors who will walk with you and give you advice pertaining to your business. They will also introduce you to events in your industry and online communities where you have an opportunity for collaboration.
Join a business group in your industry and make sure you stay committed since success doesn’t happen overnight. Keep learning and make sure you access all the resources that will help you grow your business.
In conclusion, these essentials are very important for the success of your business. Though we have not exhausted all the essentials you need as a new entrepreneur, the ones mentioned in this article are the top most essential you will need to start with a solid foundation.
Need to form a UK limited company, BusinAssist offers hassle-free company formation services that will get you started. Reach them at info@businassist.com if you have any questions about the company formation services they offer.