December 20, 2014
Starting a business is a big undertaking and the fact is that most fail within the first year. Here are some of the crucial steps to think about in the very early days:
It almost goes without saying, but the key starting point for creating a business is an idea. However, not all good ideas become good businesses. You must ask yourself, is there a market for this idea? The tried and tested way to find this out is research. Not only do you need to know if a market exists, you need to work out what type of marketing, pricing and business model will best attract your target customers.
With your idea and research in tow and before starting a business, you need to decide which business structure to opt for. Again, research is required to find out what are the pros and cons of the relevant structures in relation to your idea. The choice of structure will inform your future growth; therefore, picking the best-suited structure is an imperative.
The next step in starting a business, is creating your business plan: this is how you can map how your business is going to get to where you wish in three to five years. Without a clear vision, a business will not succeed, and, in addition, a comprehensive plan is needed to persuade other people to provide funding if required. Starting a business will almost certainly need some form of funding.
At this point, you need to consider the image of your business; for example the name and logo. These need to stand out and be unique in the increasingly globalised and crowded market. Before starting a business, this image needs to be displayed on a well designed website, and all this needs to be fully completed before your business goes live. Your website is where most people will come across your business and decide whether to use your services. All very important issues when starting a business.
Cash Flow Management
Finally, you need to make sure your finances are all in order. Cashflow is the number one reason why so many businesses do fail so quickly. So this means you need to get an accounting and cashflow system running ASAP, so that you don’t get buried in invoices and receipts, and lose sight of the viability of your fledgling business.
Finally, it is important to remember that 70% of small businesses that receive mentoring survive for five years or more, which is double the rate of those who don’t. Don’t be afraid to ask for business mentoring from DAA Consulting, especially if you’re starting a business in Hertfordshire.