Tips when starting a new business

New Business

Starting New Business

Is the UK becoming a nation of entrepreneurs? According to figures released by the Office for National Statistics (ONS) the sharp fall in unemployment announced this month has partly been driven by a large rise in self-employment. The number of self-employed people increased by 337,000 to reach 4.54 million and, according to the Federation of Small Businesses, small and medium enterprises employ more than 14 million people, accounting for 59.3 per cent of private sector employment and 48.1 per cent of private sector turnover.

If you’re looking to join this growing number of small business owners there are a number of things to bear in mind:

Find a niche

Market analysis and sector research can often bring up ideas for a new business but finding your niche could equally be more instinctive. You could, for example, stumble upon a gap in the market simply by noticing something that you would appreciate as a consumer that doesn’t appear to exist elsewhere. Business opportunities are often staring us in the face and just need someone to make them a reality.

Crunch the details

It’s not enough to simply have a grand idea. You will also have to construct a business plan and research the market to ensure that your idea is viable and will actually make you money in the long run. You will need a clear idea of the costs involved in starting your business and running it on a day-to-day basis, as well as a forecast of potential profits.

Secure vital funding

The amount of funding your start up will require will depend on a number of factors. A brand new window cleaning business might not require as much initial funding as a new product manufacturer but you might still need money for a van, ladders (or a water fed pole system) and to purchase the round itself.

There’s been a lot of controversy over the amount of lending banks are currently willing to give to new SMEs but there are also alternative lenders who specialise in business lending. If you are looking for new business loans for companies in chelmsford and elsewhere in the East of England, for example, Foundation East can offer tailored loans to suit your particular circumstances.

Another option could be to pitch to potential investors. In either case you will have to pay – either the interest on a loan or a share of your profits to investors – but this is a case of speculating to accumulate and can certainly pay off in the long run.

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