\nHaving what it takes to bridge the gap between a great idea and a great business is what separates successful startups from those that fail. So before you spend your life savings on an idea, here\u2019s a few pressing questions to give yourself a reality check.<\/p>\n
<\/p>\n
Start with a Reality Check<\/span><\/h2>\n1. Do you have what it takes?<\/h3>\n
Becoming an entrepreneur is a massive lifestyle change that\u2019s only likely to pay off in the long term. Do you have the fortitude to stick it out, be the last to get paid every month, shoulder uncertainty and put in the time? Take the most brutally honest look at yourself than you ever have, and decide if you\u2019re ready.<\/p>\n
2. Is there a genuine need for your solution?<\/h3>\n
People pay for things they need to fulfil a physical or emotional need. You may love your idea, but you need potential customers to love it too. Do the people who need your product have the money to spend? Is there an opportunity in the market that can be backed up with analysis and data?<\/p>\n
3. What can you do better than your competitors?<\/h3>\n
Starting a business in a crowded space makes it that much harder to succeed. If there are currently 10 competitors offering the same product or solution as you, are you able to adequately compete with them or offer something that they don\u2019t?<\/p>\n
4. Can you lead a team?<\/h3>\n
Assembling and managing a team is hard work. Do you have the personality needed to motivate people, establish open communication, set boundaries and make decisions that may ultimately impact them? Major decisions start and end with you. Do you have the skills and staying power to keep improving?<\/p>\n
5. Have you got a realistic picture of costs involved?<\/h3>\n
When you\u2019re in the planning stage and eager to get things off the ground it can be easy to overestimate sales and underestimate costs. To maintain the integrity of your business idea and convert it into something that makes financial sense, it\u2019s important to be realistic about the costs involved, and have your business plan double checked by an expert.<\/p>\n
6. Are there hidden dependencies?<\/h3>\n
Is there any legislation you need to take into account? Do you fully understand your sales\u2019 channels? Are there any cultural issues or marketing requirements that you\u2019ll need to consider? Ensure you fully understand how these may impact your timeline and overall budget.<\/p>\n
![\"start-720\"](\"http:\/\/uk.instantoffices.com\/blog\/wp-content\/uploads\/2016\/05\/start-720.jpg\")
<\/p>\n
<\/p>\n
How to Start Your Own Business \u2013 14 Steps to Success<\/h2>\n
If you\u2019ve done a thorough sense check and are prepared for the challenge of starting your own business, here are 14 tips to help you get started.<\/p>\n
1. Start with a business plan<\/span><\/h3>\nA business plan is essential to be able to present your idea to potential investors. It\u2019s also the guide which will lead all your decisions going forward, including how you fundraise.<\/p>\n
A good business plan will help you:<\/h4>\n\n- Define a business idea<\/li>\n
- Spot weaknesses<\/li>\n
- Layout goals<\/li>\n
- Measure progress<\/li>\n<\/ol>\n
Do I really need a business plan?<\/h4>\n
The short answer is an unequivocal yes. A business plan is your chance to separate talk from fact and get everything down onto paper for the clearest view of your plan. Not only is it an essential document to show potential investors, but it also helps you set out a clear plan for the current status and future of your organisation.<\/p>\n
How long should a business plan be?<\/h4>\n
There\u2019s no right answer to this one. Page count will vary depending on the text to graphic ratio, and can range anywhere from 10 pages to 100. Summaries are important, and it\u2019s crucial that a reader can scan your plan quickly to glean an idea using main points. Include white space, bullet points, headings, images, illustrations and more to break up text.<\/p>\n
What to include in your business plan<\/h4>\n
1. Your business concept: Include your mission statement and a summary of the company
\n2. Strategy and actions: Business goals and how you plan to achieve them
\n3. Your competitive advantage: What are the unique selling points if your product or service
\n4. Who your audience is: Identify your target customers and which channels you\u2019ll use to reach them
\n5. The team: What skills, knowledge or experience does each person bring to the table?
\n6. Finances: Your realistic financial projections for the company<\/p>\n
Is it better to hire a professional business plan writer?<\/h4>\n
There\u2019s nothing wrong with sending your first draft to a professional for refinement, tips and advice, but it\u2019s highly recommended, and beneficial, to write your business plan yourself. Not only is it a good exercise in really getting to know your strengths and weaknesses, but it will also enable you to identify opportunities.<\/p>\n
Even if your business plan is relatively short, now is a good time to do an in depth analysis of your market. Segment it into granular groups and do a complete competitive assessment to gather real data to fuel your decisions. Download a business plan template<\/a> at Prince\u2019s Trust to help you get started and remember, although it may seem like a daunting task, if you work according to a basic structure, you\u2019ll be surprised at how easy it is.<\/p>\nSuggested Reading:<\/strong> How to Write a Business Plan<\/a><\/p>\n[tweetthis display_mode=”box”]The only thing worse than starting something and failing\u2026is not starting something. \u2013 Seth Godin[\/tweetthis]<\/p>\n
2. Look at budget versus costs<\/span><\/h3>\nDetermine how much money you have to spend, where it all comes from, and whether there is access to reserves if need be. Then, some desktop research should give you a good idea about the general costs involved with developing your product or service. Lay it all out, including any potential hidden costs, so that you have a detailed and clear view of your costs and expenditure when launching the business.<\/p>\n
[tweetthis display_mode=”box”]You don’t learn to walk by following rules. You learn by doing, and by falling over. \u2013 Sir Richard Branson[\/tweetthis]<\/p>\n
<\/p>\n
3. Source investors<\/span><\/h3>\nFunding is crucial, whether from a bank, your savings, a credit card, grants or investors. Remember that, depending on the type of investors you manage to secure, you may have to take their advice and suggestions into account.<\/p>\n
3 Ways to Find Funding<\/h4>\n
1. Use the Finance Finder<\/a> tool to see if you qualify for government-backed support and finance for your business. The tool allows you to customise your search by location, size and activity, as well as filter schemes so only ones you are eligible for will show.<\/p>\n2. Consider sourcing an angel investor, which is someone that invests their own money in the early stages of a business. Read How to Find an Angel Investor <\/a>to learn more and also view a list of potential contacts.<\/p>\n3. Apply for a bank loan by providing cash flow forecasts<\/a> and proof of ability to pay back the loan with interest.<\/p>\nSuggested Reading:<\/strong> 10 Ways to Fund your Business without a Bank Loan<\/a><\/p>\n4. Prepare your support system<\/span><\/h3>\nSetting up a business is emotionally and physically taxing. Make sure your family and close friends are on board and that they know how much of yourself you will be putting into this. It\u2019s not only a big help if you need resources, but it\u2019s also often essential to be able to bounce ideas off of people you trust.<\/p>\n
[tweetthis display_mode=”box”]Make every detail perfect, and limit the number of details to perfect. \u2013 Jack Dorsey, Twitter co-founder[\/tweetthis]<\/p>\n
<\/p>\n
5. Give your business an identity<\/span><\/h3>\nIf you don\u2019t already have a name, now is the time to choose one. It\u2019s also a good idea to start giving your brand identity some thought, or to hire someone to develop a basic one for you.<\/p>\n
Suggested Reading:<\/strong> How to Choose a Name for your Business<\/a><\/p>\n\u00a0<\/strong><\/p>\n6. Get your legal affairs in order<\/span><\/h3>\nChoose whether you want your business to be a sole proprietorship or partnership, an ecommerce company, a non-profit, limited liability company, corporation or something else. Now is also the time to confirm your tax obligations<\/a> and to find out what permits or licenses you\u2019ll need to secure in order to operate your type of business in a specific area.<\/p>\nSuggested Reading:<\/strong> Licence Finder<\/a> \u2013 how to determine what licence you need.<\/p>\n\u00a0<\/strong><\/p>\n7. Register your company<\/span><\/h3>\nOnce you\u2019ve settled on a name, you\u2019ll need to register your business<\/a>. If you\u2019re thinking of getting a patent, bear in mind that they are expensive and probably not worth investing in until you are in a more stable financial position.<\/p>\nSuggested Reading:<\/strong> Applying for a Patent<\/a><\/p>\n\u00a0<\/strong><\/p>\n8. Save money with a flexible office<\/span><\/h3>\nThere are loads of factors to take into account when choosing a location for your business. It has to be in close proximity to suppliers, have ample space, be accessible to customers and it has to suit the needs of your business. If you don\u2019t need a shop or warehouse, don\u2019t put yourself under extra pressure by committing to a lengthy lease, when flexible office or coworking solutions can offer you more benefits and flexibility, for a fraction of the cost.<\/p>\n
Suggested Reading:<\/strong> Benefits of serviced offices<\/a><\/p>\n\u00a0<\/strong><\/p>\n9. Insure your business<\/span><\/h3>\nAll of your business assets need to be insured, to avoid any financial strain in the event of damage, theft or loss. It\u2019s one of those things that you wish you didn\u2019t need, but are relieved that you have when you need it. If you work from home, consider comprehensive home insurance<\/a> to avoid risk.<\/p>\n
<\/p>\nA business plan is essential to be able to present your idea to potential investors. It\u2019s also the guide which will lead all your decisions going forward, including how you fundraise.<\/p>\n
A good business plan will help you:<\/h4>\n\n- Define a business idea<\/li>\n
- Spot weaknesses<\/li>\n
- Layout goals<\/li>\n
- Measure progress<\/li>\n<\/ol>\n
Do I really need a business plan?<\/h4>\n
The short answer is an unequivocal yes. A business plan is your chance to separate talk from fact and get everything down onto paper for the clearest view of your plan. Not only is it an essential document to show potential investors, but it also helps you set out a clear plan for the current status and future of your organisation.<\/p>\n
How long should a business plan be?<\/h4>\n
There\u2019s no right answer to this one. Page count will vary depending on the text to graphic ratio, and can range anywhere from 10 pages to 100. Summaries are important, and it\u2019s crucial that a reader can scan your plan quickly to glean an idea using main points. Include white space, bullet points, headings, images, illustrations and more to break up text.<\/p>\n
What to include in your business plan<\/h4>\n
1. Your business concept: Include your mission statement and a summary of the company
\n2. Strategy and actions: Business goals and how you plan to achieve them
\n3. Your competitive advantage: What are the unique selling points if your product or service
\n4. Who your audience is: Identify your target customers and which channels you\u2019ll use to reach them
\n5. The team: What skills, knowledge or experience does each person bring to the table?
\n6. Finances: Your realistic financial projections for the company<\/p>\n
Is it better to hire a professional business plan writer?<\/h4>\n
There\u2019s nothing wrong with sending your first draft to a professional for refinement, tips and advice, but it\u2019s highly recommended, and beneficial, to write your business plan yourself. Not only is it a good exercise in really getting to know your strengths and weaknesses, but it will also enable you to identify opportunities.<\/p>\n
Even if your business plan is relatively short, now is a good time to do an in depth analysis of your market. Segment it into granular groups and do a complete competitive assessment to gather real data to fuel your decisions. Download a business plan template<\/a> at Prince\u2019s Trust to help you get started and remember, although it may seem like a daunting task, if you work according to a basic structure, you\u2019ll be surprised at how easy it is.<\/p>\nSuggested Reading:<\/strong> How to Write a Business Plan<\/a><\/p>\n[tweetthis display_mode=”box”]The only thing worse than starting something and failing\u2026is not starting something. \u2013 Seth Godin[\/tweetthis]<\/p>\n
2. Look at budget versus costs<\/span><\/h3>\nDetermine how much money you have to spend, where it all comes from, and whether there is access to reserves if need be. Then, some desktop research should give you a good idea about the general costs involved with developing your product or service. Lay it all out, including any potential hidden costs, so that you have a detailed and clear view of your costs and expenditure when launching the business.<\/p>\n
[tweetthis display_mode=”box”]You don’t learn to walk by following rules. You learn by doing, and by falling over. \u2013 Sir Richard Branson[\/tweetthis]<\/p>\n
<\/p>\n
3. Source investors<\/span><\/h3>\nFunding is crucial, whether from a bank, your savings, a credit card, grants or investors. Remember that, depending on the type of investors you manage to secure, you may have to take their advice and suggestions into account.<\/p>\n
3 Ways to Find Funding<\/h4>\n
1. Use the Finance Finder<\/a> tool to see if you qualify for government-backed support and finance for your business. The tool allows you to customise your search by location, size and activity, as well as filter schemes so only ones you are eligible for will show.<\/p>\n2. Consider sourcing an angel investor, which is someone that invests their own money in the early stages of a business. Read How to Find an Angel Investor <\/a>to learn more and also view a list of potential contacts.<\/p>\n3. Apply for a bank loan by providing cash flow forecasts<\/a> and proof of ability to pay back the loan with interest.<\/p>\nSuggested Reading:<\/strong> 10 Ways to Fund your Business without a Bank Loan<\/a><\/p>\n4. Prepare your support system<\/span><\/h3>\nSetting up a business is emotionally and physically taxing. Make sure your family and close friends are on board and that they know how much of yourself you will be putting into this. It\u2019s not only a big help if you need resources, but it\u2019s also often essential to be able to bounce ideas off of people you trust.<\/p>\n
[tweetthis display_mode=”box”]Make every detail perfect, and limit the number of details to perfect. \u2013 Jack Dorsey, Twitter co-founder[\/tweetthis]<\/p>\n
<\/p>\n
5. Give your business an identity<\/span><\/h3>\nIf you don\u2019t already have a name, now is the time to choose one. It\u2019s also a good idea to start giving your brand identity some thought, or to hire someone to develop a basic one for you.<\/p>\n
Suggested Reading:<\/strong> How to Choose a Name for your Business<\/a><\/p>\n\u00a0<\/strong><\/p>\n6. Get your legal affairs in order<\/span><\/h3>\nChoose whether you want your business to be a sole proprietorship or partnership, an ecommerce company, a non-profit, limited liability company, corporation or something else. Now is also the time to confirm your tax obligations<\/a> and to find out what permits or licenses you\u2019ll need to secure in order to operate your type of business in a specific area.<\/p>\nSuggested Reading:<\/strong> Licence Finder<\/a> \u2013 how to determine what licence you need.<\/p>\n\u00a0<\/strong><\/p>\n7. Register your company<\/span><\/h3>\nOnce you\u2019ve settled on a name, you\u2019ll need to register your business<\/a>. If you\u2019re thinking of getting a patent, bear in mind that they are expensive and probably not worth investing in until you are in a more stable financial position.<\/p>\nSuggested Reading:<\/strong> Applying for a Patent<\/a><\/p>\n\u00a0<\/strong><\/p>\n8. Save money with a flexible office<\/span><\/h3>\nThere are loads of factors to take into account when choosing a location for your business. It has to be in close proximity to suppliers, have ample space, be accessible to customers and it has to suit the needs of your business. If you don\u2019t need a shop or warehouse, don\u2019t put yourself under extra pressure by committing to a lengthy lease, when flexible office or coworking solutions can offer you more benefits and flexibility, for a fraction of the cost.<\/p>\n
Suggested Reading:<\/strong> Benefits of serviced offices<\/a><\/p>\n\u00a0<\/strong><\/p>\n9. Insure your business<\/span><\/h3>\nAll of your business assets need to be insured, to avoid any financial strain in the event of damage, theft or loss. It\u2019s one of those things that you wish you didn\u2019t need, but are relieved that you have when you need it. If you work from home, consider comprehensive home insurance<\/a> to avoid risk.<\/p>\n
Do I really need a business plan?<\/h4>\n
The short answer is an unequivocal yes. A business plan is your chance to separate talk from fact and get everything down onto paper for the clearest view of your plan. Not only is it an essential document to show potential investors, but it also helps you set out a clear plan for the current status and future of your organisation.<\/p>\n
How long should a business plan be?<\/h4>\n
There\u2019s no right answer to this one. Page count will vary depending on the text to graphic ratio, and can range anywhere from 10 pages to 100. Summaries are important, and it\u2019s crucial that a reader can scan your plan quickly to glean an idea using main points. Include white space, bullet points, headings, images, illustrations and more to break up text.<\/p>\n
What to include in your business plan<\/h4>\n
1. Your business concept: Include your mission statement and a summary of the company
\n2. Strategy and actions: Business goals and how you plan to achieve them
\n3. Your competitive advantage: What are the unique selling points if your product or service
\n4. Who your audience is: Identify your target customers and which channels you\u2019ll use to reach them
\n5. The team: What skills, knowledge or experience does each person bring to the table?
\n6. Finances: Your realistic financial projections for the company<\/p>\n
Is it better to hire a professional business plan writer?<\/h4>\n
There\u2019s nothing wrong with sending your first draft to a professional for refinement, tips and advice, but it\u2019s highly recommended, and beneficial, to write your business plan yourself. Not only is it a good exercise in really getting to know your strengths and weaknesses, but it will also enable you to identify opportunities.<\/p>\n
Even if your business plan is relatively short, now is a good time to do an in depth analysis of your market. Segment it into granular groups and do a complete competitive assessment to gather real data to fuel your decisions. Download a business plan template<\/a> at Prince\u2019s Trust to help you get started and remember, although it may seem like a daunting task, if you work according to a basic structure, you\u2019ll be surprised at how easy it is.<\/p>\n Suggested Reading:<\/strong> How to Write a Business Plan<\/a><\/p>\n [tweetthis display_mode=”box”]The only thing worse than starting something and failing\u2026is not starting something. \u2013 Seth Godin[\/tweetthis]<\/p>\n Determine how much money you have to spend, where it all comes from, and whether there is access to reserves if need be. Then, some desktop research should give you a good idea about the general costs involved with developing your product or service. Lay it all out, including any potential hidden costs, so that you have a detailed and clear view of your costs and expenditure when launching the business.<\/p>\n [tweetthis display_mode=”box”]You don’t learn to walk by following rules. You learn by doing, and by falling over. \u2013 Sir Richard Branson[\/tweetthis]<\/p>\n <\/p>\n Funding is crucial, whether from a bank, your savings, a credit card, grants or investors. Remember that, depending on the type of investors you manage to secure, you may have to take their advice and suggestions into account.<\/p>\n 1. Use the Finance Finder<\/a> tool to see if you qualify for government-backed support and finance for your business. The tool allows you to customise your search by location, size and activity, as well as filter schemes so only ones you are eligible for will show.<\/p>\n 2. Consider sourcing an angel investor, which is someone that invests their own money in the early stages of a business. Read How to Find an Angel Investor <\/a>to learn more and also view a list of potential contacts.<\/p>\n 3. Apply for a bank loan by providing cash flow forecasts<\/a> and proof of ability to pay back the loan with interest.<\/p>\n Suggested Reading:<\/strong> 10 Ways to Fund your Business without a Bank Loan<\/a><\/p>\n Setting up a business is emotionally and physically taxing. Make sure your family and close friends are on board and that they know how much of yourself you will be putting into this. It\u2019s not only a big help if you need resources, but it\u2019s also often essential to be able to bounce ideas off of people you trust.<\/p>\n [tweetthis display_mode=”box”]Make every detail perfect, and limit the number of details to perfect. \u2013 Jack Dorsey, Twitter co-founder[\/tweetthis]<\/p>\n <\/p>\n If you don\u2019t already have a name, now is the time to choose one. It\u2019s also a good idea to start giving your brand identity some thought, or to hire someone to develop a basic one for you.<\/p>\n Suggested Reading:<\/strong> How to Choose a Name for your Business<\/a><\/p>\n \u00a0<\/strong><\/p>\n Choose whether you want your business to be a sole proprietorship or partnership, an ecommerce company, a non-profit, limited liability company, corporation or something else. Now is also the time to confirm your tax obligations<\/a> and to find out what permits or licenses you\u2019ll need to secure in order to operate your type of business in a specific area.<\/p>\n Suggested Reading:<\/strong> Licence Finder<\/a> \u2013 how to determine what licence you need.<\/p>\n \u00a0<\/strong><\/p>\n Once you\u2019ve settled on a name, you\u2019ll need to register your business<\/a>. If you\u2019re thinking of getting a patent, bear in mind that they are expensive and probably not worth investing in until you are in a more stable financial position.<\/p>\n Suggested Reading:<\/strong> Applying for a Patent<\/a><\/p>\n \u00a0<\/strong><\/p>\n There are loads of factors to take into account when choosing a location for your business. It has to be in close proximity to suppliers, have ample space, be accessible to customers and it has to suit the needs of your business. If you don\u2019t need a shop or warehouse, don\u2019t put yourself under extra pressure by committing to a lengthy lease, when flexible office or coworking solutions can offer you more benefits and flexibility, for a fraction of the cost.<\/p>\n Suggested Reading:<\/strong> Benefits of serviced offices<\/a><\/p>\n \u00a0<\/strong><\/p>\n All of your business assets need to be insured, to avoid any financial strain in the event of damage, theft or loss. It\u2019s one of those things that you wish you didn\u2019t need, but are relieved that you have when you need it. If you work from home, consider comprehensive home insurance<\/a> to avoid risk.<\/p>\n2. Look at budget versus costs<\/span><\/h3>\n
3. Source investors<\/span><\/h3>\n
3 Ways to Find Funding<\/h4>\n
4. Prepare your support system<\/span><\/h3>\n
5. Give your business an identity<\/span><\/h3>\n
6. Get your legal affairs in order<\/span><\/h3>\n
7. Register your company<\/span><\/h3>\n
8. Save money with a flexible office<\/span><\/h3>\n
9. Insure your business<\/span><\/h3>\n