Starting a business is an exciting venture but it doesn’t come without its challenges.
From securing funds to forming an effective marketing strategy, the steps you take when setting up can have a lasting impact on the future of your business.
So, let’s look at some of the key things to consider when starting a business.
Market Research
Market research should be your first step when launching a new business. You need to know that there’s a demand for what you’re offering because without demand, your business won’t succeed.
Additionally, market research will help you gain a better understanding of who your target customers are, what they need from you, and what their general purchasing habits are.
By gaining a comprehensive understanding of your niche and your target customers, you can begin strategising ways to ensure your business stands out from the competition.
Market research can be conducted through surveys and questionnaires, hosting focus groups or interviews, and looking at close competitors (if there are any).
Funds and Financial Plans
Securing the funds to get a business off the ground is one of the most significant challenges entrepreneurs face.
You need to have enough to cover the launch of your business and sustain your outgoings before you begin making a profit – which could be quite some time.
There are several ways to raise funds including:
- Loans
- Personal savings
- Crowdfunding
- Sourcing investors
Along with having adequate funding, you also need to have a financial plan in place. This includes budgeting for any and all outgoings – not forgetting taxes, and taking into account variable costs.
Consulting with an accountant or financial advisor can be particularly beneficial at this stage.
Business Structure
It’s important to choose the most appropriate business structure for your company. It needs to align with your goals and the way you want the company to be run.
Common business structures include sole proprietorship, partnership, corporation, and limited liability company. All have their pros and cons.
For example, with a sole proprietorship, you get complete control over the business and setting up is much easier but you will be personally liable for all debts of the company and may struggle getting a business loan.
Employees
You need to consider what kind of skills you will need to grow your business. Whether it be managing operations or handling customer service, employees can make or break a small business.
When it comes to building a team, be clear about the roles and responsibilities and consider whether it will be more cost-effective to hire full-time employees or use freelancers.
Online Presence
Having an online presence is essential in this day and age. Your website is your storefront and needs to be designed in a way that not only reflects your brand and its values but is also easy to use, fast, mobile friendly, and enticing for the user.
Additionally, your site should be well optimised for search engines to ensure you are visible to your target customers.
If you’re not clued up on how to improve your website’s online presence, consider partnering with a Leeds SEO agency who can increase your visibility in the search engines.
Social media platforms can also be used to improve your online presence and offer opportunities to engage with your audience and build brand awareness.
Marketing Channels
Using the right marketing channels is essential for capturing your target audience effectively. \
For example, if your focus is on OAPs, Instagram might not be the best channel for your business, as it’s less likely to reach your target customer.
Starting a Business is Demanding
Starting a business can be incredibly rewarding, but it isn’t easy. The process of setting up a business is demanding and requires careful planning.
But by focusing on market research, securing funds, choosing the most appropriate business structure, planning your next hires carefully, thinking about your online presence, and using the right marketing channels, you can set yourself up for success.
