Looking to set up a new business? Then there are a few things to consider first:
- What business?
First and foremost you need to consider what business you’ll set up. It may be you have knowledge and experience of a particular sector, a hobby or passion you want to turn into a business. However, it will help you in setting up the business and in fielding customer questions in the future, if you have a substantial knowledge base of the products or services you’re selling. Knowledge and expertise equal gravitas in business.
- Who are your customers?
Once you’ve decided on the nature of your business, you’ll need to consider who are your target customers. Where are they based and what are their demographics? Knowing your customers will help you to tailor your products and services to them, and to focus your marketing efforts accordingly. For example, if your prospective customers work in a particular sector you may want to advertise in a trade magazine that targets that sector. Alternatively, if your customers are based in a particular geographic area, then you may want to advertise in the local media.
- Your competition
Another factor to take into consideration is your competition. As well as researching your customers, you’ll need to research your competition too. Look at what they’re offering your prospective customers and at what price. Can you afford to undercut them or will you offer them a premium service at a higher rate? What can you offer their customers that will make them choose you instead? Factors such as pricing, quality, quantity, after sales support are all important considerations.
- The costs involved
Moreover, you’ll also want to factor in the costs of setting up your new business. Accurately forecasting the costs involved is crucial if you want to get your business off to a good start. So plan a budget, setting a little aside for unforeseen circumstances and stick to your budget as much as is possible. Part and parcel with this is working out from where you’re obtaining the finance for these costs. Savings, a loan or other investors are all avenues to consider.
- Practicalities of business set-up
Once you’ve chosen the nature and focus of your business, you’ll need to set-up your business officially. One big decision is how you’re setting up your company, as a sole trader, partnership or a limited company. When founding a business, it’s important that you’ve notified all of the relevant authorities like Companies House or HMRC, and have all of the right paper work in place. Company formation is a complex affair. However, help is at hand in the shape of UK company registration agents, who’ll help ensure you’ve taken all the necessary steps to make certain your company’s set up is fully compliant.
Hand-in-hand with setting up your business is ensuring you have all of the necessary support systems in place to take your company forward. So your bookkeeping, company records, pay slips and VAT payments will all be in place and completed in time.
So there you have five factors to consider when setting up your business, the nature of your business, your customers, your competition, the costs involved and the practicalities of setting your enterprise up.