7 Things You Need To Consider Before Launching Your Business

So, you’ve had a eureka moment and you’ve decided to start a new business. But how on earth do you even start to do this? What are the things you need to do to ensure it goes the distance?  With 10% of businesses not lasting more than 12 months (and 70% failing between years two to five), it’s important not to jump in feet first.

The temptation is to do the exciting stuff like thinking of a name and knocking up a logo.  But there is much more to be considered first.

Taking the step to work for yourself is a big one and not one that should be taken lightly.  It will require you to work long hours, learn a heap of new skills, invest in self-development, and see you failing a whole heap of times (although it’s not failing if you learn from it!).

So, if you still want to take the leap… read on!

What do you REALLY want to do?

Many entrepreneurs see a gap in the market, think it’s a quick win, and go for it.  However, one of the sure-fire ways for your business to fail is if you have no passion for it.  Think about the reasons why you want this for yourself in the first place.  It’s usually because you are sick of your job, you’ve lost the buzz for it and want something new.  Don’t let that new thing be something that you’ll soon lose the passion for and see you back at square one.

Think about the things in life that you love doing. What tasks get you in a state of ‘flow’ (you know, those occasions when time flies by because you’ve been engrossed in a task)?  

Think about the things you are good at.  Is there a way you can combine your skills with a hobby? Can you retrain in some way?

Running your own business is a whole lot easier if you love what you do – it won’t even feel like work!

Who are you helping?

You might think that being able to help the masses, means that you open yourself up to more business opportunities and the niching down will only result in turning away customers. 

However, trying to be everything to everyone will result in your business message becoming diluted and ultimately not resonating with anyone. 

By thinking about the type of person or business you want to work with, you can define your message, talk about their pain points, and how you are the solution for them. 

It will enable you to tailor how you speak to them via social media (and be on the platforms they’re using), email marketing, and other marketing forms.  

A good idea is to create an avatar of your ideal client/customer. You may actually have several that you serve. Think of them as real people.  How old are they, what do they read/watch, where do they shop, where do they holiday, what brands do they wear?

The information you gather here will help maximise your marketing later down the road and ensure that your message is resonating with your target audience.

Have a plan! 

So you’ve figured out what you want to do and who you are going to help, but what about financing yourself and your business?  Even if your business is flying within the first six months of trading (and bravo if that’s happening) you will find that you are reinvesting much of that income straight back into the business.  You want it to grow right?  You’ve heard the phrase ‘you have to speculate to accumulate?  This goes double when building a business! 

It’s advisable to have a financial plan in place where you can survive for 6-18 months without your business venture bringing in any income.  This might mean that you do this as a ‘side-line’ to your current job, working on it in the evenings and weekends.  Don’t underestimate the time it takes to build up your audience, gain their trust and turn them into paying customers. 

Let’s make it official 

So, by now you’re totally sure you want to do this, so we need to make it official.  

First off, you need to decide the format your business will take.  Most new start-ups start as sole traders or partnerships (if you’re setting up with someone else).  If your business is expanding then you may wish to change it at a later date.  It’s a good idea to get an accountant on board to help you as they will advise the best route for you. 

Your business will need to be registered with HMRC for tax purposes and also with Companies House if you are going to be a Limited Company.  

Once you are registered, you will be able to go ahead and set up your business bank account.

Show me the money!

Or in other words, where are you going to keep your money?  

Different banks do different things and it’s best to do your homework when looking at which bank to use.  Check out…

What your current bank can do for you?

Do they have a product specifically for small businesses?

Do you know anyone else that has used this bank for their business?

Have faith

Running a business is hard work but it’s also incredibly rewarding.  Trust the growth process and have faith in what you are doing.  When you are clear on your message, you know who you want to help and your passion for helping them is there to be seen, your business growth will come.  

It takes time to build an engaged, loyal audience and a list of happy clients, but do these things and they will come… and keep coming back.