Seven key things you really need to get right when starting your own business
Last year, according to the Centre for Entrepreneurs, a record-breaking 772,002 new businesses were formed in the UK – a 13.25% increase on 2019’s total. In more recent years, about 650k had been the annual average, so there’s no doubt about it – the UK is undergoing a start-up boom.
Covid-19 helped to fuel the phenomenal start-up growth last year. During the first three-month lockdown alone, an estimated 315,000 new UK businesses were started in the UK. While some did it following redundancy, others used the time and opportunity they had while at home during lockdown to finally start their own business.
Maybe you’re considering starting up or possibly you’ve already set the wheels in motion. There are many things to get right if your new business is to get off to the best possible start. But, here are seven key things you really need to nail if your new business is to succeed.
1. Come up with a good business idea
Good business ideas generate enough profit – it really is that simple. Some seemingly “good” business ideas don’t work in the real world, the demand just isn’t there. Once you’ve come up with your business idea, find out what others think (don’t just ask friends and family). Find out whether they would buy what you’re planning to sell for the prices you plan to charge. If so – great – you may be on to a winner. If not – think of a better business idea. It could save you a lot of time and money.
2. Decide what type of business you’ll start
When will you sell? The options are spare-time, seasonal (eg summer-only), part-time (aka “side-hustle”) and full-time business. Not all businesses can generate enough profit all-year-round. Some may only work at weekends. You also must consider how you’ll sell – offline, online or both? Who will you target – consumers, businesses or both? Will you sell locally, regionally, nationally or internationally? Will start from scratch or buy another business? Do you plan to go it alone or go into business with someone else? You must decide all of the answers to these key questions.
3. Choose the right legal structure
By law, you must register your business and pay all tax due. Most become a sole trader (ie self-employed). Basically, you and the business are the same in law, so you’re personally liable for any business debts. You can go into business with someone else in an ordinary partnership or limited liability partnership. Many people set up a private limited company to shelter them from personal liability. There can be marginal tax savings, too. Whatever you choose, registering can be done online, quickly and for little or no cost. There are formation agents that will do it for you for a fee.
Visit government website Gov.uk for guidance on how to register a business.
4. Create a strong brand
Think of your brand as the associations that would come to mind when customers think of your business. This is much more than your brand identity (ie logo, typeface, colours, slogan), it’s what you stand for – your promise to your customers. Successful brands are always distinct. They engage potential customers and encourage them to buy and remain loyal.
Read our guide: How to create a successful brand.
5. Pick a good business name
This is one of the most enjoyable tasks when starting a business – but it’s also one of the most important. Get it right and your business name becomes a deadly marketing weapon that distinguishes you from your competitors, announces your business to the world and helps you to attract and retain customers. But get it wrong and it can create negative perceptions about your business and ultimately drive potential customers away.
Read our guide: How to pick a good business name.
6. Create a wonderful website
Even if you don’t sell online, customers will want to find out more about your business before they decide whether to buy. Your website allows them to do that quickly and easily. It may even be how customers find you. Your website should create a fantastic first impression by showcasing your brand, telling potential customers key facts and why they should buy from you. Doing your own website is cheaper, and DIY templates make it possible, but hiring the right professional will ensure better results, while also saving you time.
7. Get the right support around you
Starting a business involves a lot of learning. You won’t know how to do many things, but others can help you. There are many sources of free online start-up advice, such as the Start Up Donut website, while government website Gov.uk provides guidance to rules and regulations and sources of government support. The startups.co.uk website also offers a wealth of free guidance, while those aged 18-30 can contact the Prince’s Trust for start-up support.
Paying for guidance from an experienced accountant could help you to save money, but seek recommendations from other small businesses. Finding a mentor (someone who has started and run a successful small business) could also really help. Running a business can be a tough at times, but that can made easier with the support of friends and family. You can also reach out to other start-ups and small businesses via Facebook small business groups. You may be surprised at other business owners’ willingness to share their experience, tips and advice.
• Also read: 10 things you might believe about starting your own business that may not be true and 8 classic mistakes you need to avoid when starting your own business.
Written by Mark Williams, founder and content director of Dead Good Content. Mark is a small-business and start-up content specialist with more than 25 years’ experience, having written for The Guardian, numerous leading brands and award-winning magazines and websites.