Before you start-up in business

Setting up on your own is one of life’s ultimate learning curves.

Not just about making sure you succeed and earn a living, but also in terms of what it will teach you about yourself. We guarantee that by the end of the first year, your self-awareness will be considerably more acute.

But it’s not just awareness of yourself that is vital to survival in the cut-throat world of commerce – what do you know about your competitors? More to the point – do you know who your competitors are in the first place? What are their weaknesses? What do they charge? Remember that research into your competitors is an ongoing process, as too many failed businesses have discovered to their cost.



Time management is another string you’ll need to add your bow. You need to be prepared for the fact that the usual nine-to-five existence you’ve probably enjoyed so far in your working life may have to become a 12 hour day or longer, at least for the first few months or so.

You’ll have to be prepared to put personal arrangements on hold and maybe even to change social arrangements at short notice. Your closest friends will want you to succeed and will hopefully cut you the slack you need. It’s one of the few downsides to starting your own business, but you know what they say about broken eggs and omelettes.

Money is likely to be your greatest sticking point. Even with a solid business idea, with all the costs of setting up a new business – from computer hardware and equipment to crafting your own website – you’re going to need a little financial back-up to keep you going in the early days.

Set a start-up date and save up with this in mind. Alternatively, you could present a well-structured business plan to your bank manager with a start-up loan in mind. And whenever you are working out costings for your business, always formulate these with the worst case scenario in mind. It’s far better to have a little money left over than find yourself in debt before you’ve even started to generate a profit.

But even though funds are likely to be tight in the beginning, it’s not advisable to try to do everything yourself. Think hard about yourself and write down your strengths and weaknesses. If marketing isn’t your forte, call in someone to help. Likewise, call in a few favours from friends who may have the necessary expertise you’re lacking in those areas.

Similarly, book yourself an appointment with the two professionals you will perhaps need the most during your first few years of business – an accountant and a business advisor. These people really can mean the difference between make and break.

Good ones will have already played an active role in the setting up of hundreds of businesses and will be able to tell you if there is any aspect you’ve overlooked. It’s not difficult to seek out free business advice at the start-up stage. You’re best advised to shop around for an accountant. Try not to pick one on price – select the one who you feel will work best with you and your type of business. Relationship and trust is more important than anything.

You’ll also need to shop around the find the right bank to handle your new small business affairs. Consider factors such as whether you will have an individual available to answer any queries as they arise, as well as what the bank charges for borrowing money and general transactions.

And if, after all of this, you’ve decided that starting a business is the thing for you, you’ll need to think about the business structure you will be trading under – are you going to be a sole trader, set up a limited company or form a partnership?


source : www.bytestart.co.uk