The facts are 75% of start ups fail within the first three years and 33% of these will collapse in the first six months.
Here are some top tips to consider when taking the courageous first step of setting up your own business
1. Should you be a limited company, sole trader, partnership or LLP?
For example, if you are a sole trader you will be taxed on the profits you generate and not on what you draw from your business. However you do not have limited liability and all your assets may be exposed.
A company provides you with limited liability and you can determine the amount of money you extract from it. Also, some clients like to operate from a limited company as it enhances their business profile.
2. Your business name
Think long and hard about your name!
Consider what your name needs to say about your business and your positioning in the market. Your name will be the first thing your potential customers will see.
If you wish to set up a company make sure the name is available at Companies House.
It is also very important that your name is available across all platforms, for example, company name, webpage, email and social media.
3. How to obtain sales orders from new clients
If you already have an established network of potential clients that know you then this is one of the best ways of generating sales for your new business. Contact your clients and let them know you have started a new business!
Also, use social media to start building a reputation with potential customers, local journalists, suppliers, and local business organisations.
Consider joining networking groups such as BNI that have proven to generate new work.
4. Webpage
Setting up a webpage is very important as it allows potential customers to find out more about you and provides credibility.
However, once the webpage is up and running new clients will find it very difficult to find you unless you engage in PPC (Pay Per Click) and SEO (Search Engine Optimisation).
Consider obtaining advice from a digital marketing consultant.
5. Your USP
Customers will start buying from you if you offer something better or different. Your Unique Selling Point defines what is special about you and differentiates you from your competitors
Make sure you can clearly identify your USP as it will help you promote your business and generate more sales.
6. Mentors
Having a business mentor will help you with the multitude of questions you will have over the life of your business. Many businesses that have mentors have always commented on how invaluable it is to be able to turn to someone or a group of people for advice.
A mentor could be a number of different people, such as, family and friends, business advisers and support groups.
SBL have been helping start ups as well as mature business develop and grow their business.
