Choosing a company name, finding premises, hiring staff, winning customers are all important start-up tasks, that are vital you get right at the outset. Before you get going, it's crucial you have a business roadmap. This will help you make the right business decisions and anticipate problems before they occur.
In the UK, more than 60% of businesses are now started from home - that's more than two million home-based companies, with over 1,400 new ones launched per week. Home businesses now account for more than a quarter (28%) of the UK's employment.
Seven point guide:
1. Research your business
You must establish whether there is a demand for your product or service. You must be aware of competitors in your field, where they are succeeding and where they are failing. Define what your business does, what it offers and why it's different.
Getting to grips with your prospective market requires some detailed research - but, fortunately, there are a number of places you can go for help. Local business organisations provide a good opportunity to meet other business people for networking or to gain background information on the business climate in your area.
Finally, remember that e-commerce is a significant factor for many businesses these days, so take a look at what other rival businesses your potential customers will find by taking a look at Google.
2. Build a plan
A successful business plan needs to prove your idea can translate into reality. That means laying out what your business will do, how it will make money, where you will position yourself against rivals and what your exit strategy is so you can get out on your own terms.
This vision must be a comprehensive strategy focusing on costs, financial forecasts, marketing, hiring staff and attracting customers.
Your business may take a while to get up and running so make sure you have sufficient funds to tide you through the early journey.
3. Getting the right location
Where you base yourself is a key factor. The majority of start-ups are launched from the home to keep down costs and allow a better work-life balance. Remote and mobile technology opens up flexibility in this area. However, you must also consider how close you need to be to your customer base, staff or suppliers.
If based at home, it is important that you establish a proper dedicated and tidy workspace where you can install your phone and computer and keep hard-copy files.
4. IT & Comms
The first and most important consideration for any company should be around communications. You need to be contactable during the working day via a range of media, including telephone and email.
Critical requirements usually include a landline, mobile and internet connection to allow you to easily keep in touch with clients, suppliers and colleagues. In the current environment, a secure, reliable broadband connection is critical. Not only does it provide you with high-speed surfing capabilities, faster email and phone calling functions, it also opens up a range of tools and networks which enable effective business administration and collaboration with colleagues and clients.
5. Getting online
Having an internet presence is essential to carry out your daily business tasks and transactions and broadband is the key. However, you need to ensure your monthly download limits are suitable for your business needs. For example, design companies that use large files might need more bandwidth than a company in the retail sector.
You should also check out the security features that come with your broadband package, such as virus protection set as standard.
6. Marketing yourself effectively
A professional online presence is a prerequisite - no matter what size your company is or the sector you operate in. For small businesses in particular, an online presence can open up a world of possibilities and opportunities - creating a new sales channel, reaching out to potential customers and providing a cost-effective platform to network with other businesses.
As a small business, the key to surviving in an uncertain economy is to stand out against your rivals. This means not only running your company more efficiently, but also making sure your voice is heard by the audiences that matter to your business.
7. Controlling costs
Your business must have proper financial controls. Keeping accurate records helps you fulfil legal obligations - while also helping you monitor your financial position.
A successful enterprise generates enough cash to cover costs and make a profit. Most businesses are not expected to be profitable from day one, but they are expected to have a plan outlining how and when they intend to reach this point.
You should produce a break-even analysis. This is an estimate of when the price of your product or service will equal the cost required to produce it. The calculation of your production costs should include a percentage of all your predicted overheads - including premises, bills and labour.
As you launch and grow, your underlying business costs tend to increase too, so controlling them is one of the simplest ways to improve your company's bottom line.
