5 top tips for starting a new business
Starting a business is an exciting time, you’re full of ideas and can’t wait to get started…but just before you do, check out our top tips below…
- Start as you mean to go on – think about the type of business you want to create. Do you want a business that is totally reliant on you being there or do you want a business that can run with minimal input from you?
- What do you want to achieve – this is both personal and business related. If your business is your source of income you need to understand how much income you need to be able to take home from the business to achieve your personal goals e.g. if you want to be mortgage free in 10 years and your mortgage balance is £100,000 you need to earn £10,000 per year on top of what you need for day to day living. If you know that you can work out what you need to do with the business to achieve that. This is important, because if you don’t understand that at the beginning you can end up with a beast of a business that you are spending hours in and still not achieve your goals.
- Be honest about your strengths and weaknesses. Running a business involves many different skills, you may be great at creating websites for you customers but really struggle with finances and paperwork for example. Understanding this at the start means you know the areas that you’re going to need some extra support or training in.
- Decide on your ideal customer – thinking about the type of customer you want to attract at the beginning can save you so much time and money. Doing this at the start means you really focus on what you need to do to gain those ideal customers and where to find them. If you want more ideas on how to improve and grow your business then get in touch.
- Create a plan of how much cash you need and when for the first year. Look at the monthly expenses including how much you need to pay yourself and then how much you need to achieve in sales to cover this plus some. This way you’ll know that if you haven’t achieved your sales target for a particular month what the impact will be and you can make informed decisions on what you need to do to avoid a cashflow problems before they happen.