Starting A Business Advice
With so many businesses failing it is important if you are thinking of starting a business to plan and prepare
properly. This will also increase the chances of securing finance.
One of the key parts of starting a business is ensuring that the original idea is developed into a fully viable product or
service. Establishing whether there is a market for the product or service is the next step. This should include a
thorough examination of potential competitors and customers.
It may also be worth commissioning some market research.
If the research demonstrates there is a viable business to be had, then the next step is to develop a detailed business
plan. As well as details of the product and market, this should also include a budget plan and cashflow
forecast. Approaching a qualified accountant can also help. A professional looking business plan with credible
figures will make it easier to attract finance.
However, be careful not to fall into the trap of creating a business plan designed solely with the objective of securing funding.
A good business plan should demonstrate some critical thinking about your business, help you clarify what you want to achieve and
how you are going to achieve it. It should also help you mark progress, set goals and be in better shape to deal
with the challenges any new business is likely to face.
This approach is far more likely to impress than something solely designed to justify borrowing.
We would also advise businesses not to underestimate how much they need to borrow. Don't be tempted to underplay the
debt you require just to please your bank. A bank is just as likely to consider a larger sum if it is persuaded of the growth
potential of your business.
A good business plan should also include contingency plans that outline responses to unforeseen circumstances - positive as well as
negative. For example, what would be the financial impact of changed economic circumstances? What changes could be
made to respond? It is always worth getting comments from friends or colleagues who can bring a more detached perspective.
It could also be worth taking the time to investigate whether your business qualifies for any grants. Grants are available
from a variety of sources including the Government and its various departments, agencies, and some charitable organisations.
But starting a business is not just about facts and figures. There are fun parts too - like choosing a name for your
company. Taking the time to choose an original name can really help catch the eye of investors and customers. Finalists
in a competition to find the best business names included a greengrocer's store called Melon Cauli, an entertainment company
called Amp & Decks and a record store called the Vinyl Resting Place.
But be aware that there are specific rules that need to be followed when choosing a company name.
Also see Business Incorporation.
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