Setting up a new business can be a very daunting prospect, but it can also be lucrative. If you can find a niche in a current market and exploit it to your advantage you could become very successful. If you’ve been thinking about it you may have been seeking advice on anything from company structure to releasing funds with factoring once you get started.
Advice is key, but only if it’s good. With that in mind, take a look at our considerations to take into account when starting up your own business.
Reasons why you’re setting up
Setting up on your own is a massive deal. In order to be successful you’ll need to put in a lot of work, commitment and patience. You’ll immediately need to be able to structure your time and keep on track of the day to day operations.
Now’s not the time to hide anything from yourself. It’s time to really start to gauge an understanding of you as a person and whether or not you have the capabilities and the capacity to succeed. If you know you have what it takes to go it alone, go for it.
Deciding on company structure
Once of the first things you need to do is decide on the business structure you wish to trade under. It could be sole trader, partnership, limited liability company or LLP. The tax and legal obligations varies between structure so it’s vital you get professional advice on which one best suits your requirements.
In the end it often comes down to money, with one of the biggest reasons companies fail being due to lack of capital. It’s time to be realistic and conservative when it comes to working out how much funding your new business will require. Once you’re up and running you also need to keep on top of your cashflow management. There are specific options available to you to assist with this, such as factoring. Hitachi Capital Invoice Finance are offering a handy cashflow guide to help you manage your finances. You can also get access to £1 million free of charge in funding in the Inspired Cashflow SME Competition, enter online for a chance to win this award.
Research the marketplace
It’s imperative that you research the marketplace thoroughly for your product or service. In order for your venture to survive there needs to be a market. Don’t go in blind; you must cover all your bases before starting on any new venture.
Put in place a business plan
Many people don’t believe in business plans. However, even if you don’t refer to it again once you’re up and running the process of actually writing one can be very helpful for getting your thoughts in order and structure. It’s also essential if you need any third party funding.