The prospect of owning a company is a dream shared by many, and the benefits of setting up your own business are obvious. You have ultimate control over the products you sell, the people you employ, your branding, and your marketing and you are also the one who has the final say in how you shape the organization’s future. Because of that, it’s little wonder that 660,000 new companies are registered in the UK every year.
No matter how nice the dream is, it can’t equate to automatic success, otherwise we’d all be doing it. In fact, the difficulties of running your own business are clear from statistics. It’s estimated that 20% of start-ups will close within 12 months, and 60% will close within three years. So, if you’re thinking about launching a start-up, you need to carefully consider the risks attached and make a plan to mitigate them. Here are four key factors to consider when starting your own business.
The products you sell are the fundamental elements around which your whole business plan revolves. Before you jump into launching a business to sell a certain product, you should ask yourself a few questions. Is there sufficient demand? Does something similar already exist? Am I going to be taking on a saturated market? How am I going to build my pricing structure? You need to be sure you can remain competitive and that your product provides value to customers.
A lack of funding contributes to the downfall of a lot of start-ups. Overhead costs can be crippling to businesses that have not had the chance to get off the ground, which is why you need to be aware of your options when you are just starting out. Research from the British Business Bank reveals that 36% of SMEs sought external finance in 2018-19, and Nucleus’ cash flow finance is just one example of the funding you can apply for to help your business grow.
Whether you’re a fledgling start-up or a firmly established behemoth, complying with legal requirements is an absolute non-negotiable. Before you begin operating, you need to make sure you’re aware of all the laws pertaining to copyright, employment, advertising, and trading standards. You and your business are always expected to be fully compliant to all laws, or else you risk severe financial and reputational damage.
In today’s era of technological advances where consumers do their shopping on the move, having a strong online presence is paramount. You might have developed a ground-breaking product, but if you can’t market it to your audience and build your brand, then you’ll struggle to get off the ground. Recent research shows that 51% of consumers prefer to shop online rather than in-store, so you need to make sure that you are visible to online shoppers.