Introduction to Business Startups - creating a small business startup for the first time can be a daunting task. Many small businesses fail within the first three years because their owners did not have a sensible business idea and or lacked the necessary business skills and aptitude. It is critical that before you create a business startup that you think through your primary motivation for doing it in the first place. The most popular motivation for entrepreneurs is to be able in charge of their own destiny, by capitalising on their strengths to make more money than full time employment. So before you begin you create a small business startup, ask yourself the difficult questions.... For instance, are you really a risk taker and how much money and time and you potentially prepared to lose? Have you got the self-confidence, passion, physical health, competitiveness and self belief in your own abilities? Are your self-starter who can get up in the morning and have the self-discipline to concentrate on implementing a business plan? You may be passionate and have the right attitude, but do you possess the appropriate technical skills and practical experience to succeed? As a minimum, basic sales skills are vital, along with an aptitude for financial planning and project managing. Have you really got the cash to sustain yourself through the first bare year, before you build up a reputation and regular client base? most importantly, is your basic business idea sound and proven? Before you do anything else, answer all these difficult questions honestly.
Why Choose Self Employment? - lots of people dream about controlling their own destiny through setting up their own business and having self employment status. For the millions who set up a business the motivation is usually driven by a desire to earn what they feel they worth, to control their own destiny, be their own boss and have a sense of pride and accomplishment in what has been achieved. Others may enter self employment in the course of pursuing a technical or arts orientated career where professional workers typically adopt freelance or project orientated roles.
Seeking Business Advice - once you're clear in your own mind that creating a business startup is the right thing to you, it's sensible to seek some qualified business advice. There are many government orientated support organisations set up to assist entrepreneurs during the early stages of company formation. Specialist advisers will be up to guide you through the practical implications and steps of implementing your plan. One of the first people you could meet with is your accountant. He will be able to advise you how the financial constraints of your investment will limit your decision-making capabilities. They can educate you company taxation issues, appropriate company structures and other legal requirements and regulations which UK businesses must comply with.
Choosing a Business Name - as part of the business start-up process entrepreneurs should devote time to choosing a business name that reflects their business ideas, strategy and identity. For small business owners this can be a highly emotive and personal process. Yet it's imperative that when you are choosing a business name that you think of names that will instantly appear meaningful to your target customers. The process will involve registering a business name and one which meets with the business name rules and legal restrictions in your particular geography.
Writing the Business Startup Plan - the next step is to produce a business plan which encapsulates all your ideas and aspirations. A plan aims to crystallise your business goals, provide descriptions of the products or services you intend to offer and define the market opportunity. Your business plan should provide detailed explanations of how you intend to finance your goals and describe your unique selling points of your business idea. Creating a successful plan is the most important step in launching a new business. Producing a business plan is time-consuming and forces you to test and validate how realistic your assumptions actually are. Once it is complete its time to form a new business start-up company.
Seeking Business Startup Advice - you will have to decide which company structure is best suited to your business start-up ideas. Many smaller businesses set themselves up as sole traders, while the majority choose a limited liability status. Regardless of which legal entity you decide to adopt, company formation for a business startup involves quite a lot of practical choices. For a start you will have to name the business, which may be an important aspect of branding and marketing to your target audience. There are many other less exciting issues to address... Everybody will need business banking in order to pay bills or borrow money. The most popular form of structure is limited liability which will involve filling and submission to companies house to create a new limited company. There are many other company formation issues to consider such as employment laws, finding premises and creating a detailed plan and cash flow forecast.
Business Startup Finance - without personal monies to invest to set up the business, entrepreneurs may need to raise business finance to finance the fixed startup costs most small firms require. This may mean an interview with a bank manager or obtaining small business startup loan from alternative financial provider. Most startup entrepreneurs and existing businesses have traditionally taken out a small business loan from their local retail high street bank. This type of business finance has usually been secured by a personal written guarantee for the Director of the firm, normally against their own home.
Is Franchising an Alternative? - entrepreneurs do not necessarily need to create a brand new business from scratch. Many franchise business opportunities exist both here in the UK and abroad. A small business franchise is a marketing process that allows a franchisor to expand their existing distribution channels for a particular product or service, to a new market or territory. Tens of thousands of people choose to join a franchise every year because the risk of business failure is dramatically reduced by following a proven system. 90% of new franchisee's stay in profit, whereas 30% of ordinary (non franchise) business startup firms fail within the first five years.
Acquisition a Faster Route? - another small-business startup investment option is simply to buy a business outright. There are many businesses the sale on owners who would like to move on to new things, retire or who are under financial pressures of their own. Investors and entrepreneurs need to think carefully about how they vet the financial soundness of the business and question its current owner's motivations for selling. Here business brokers play key role in facilitating the courting process and leading both parties through negotiations. Its imperative to buy a business which has some type of unique differentiators in the mind of its current customers.
Choosing to Sell a Business? - most entrepreneurs will only go through the process of selling their own business once and consequently will have little or no experience in the practical steps involved. Buyers will want to know why you are selling your business. You will need a reasonable and well-prepared answer. The main reason to sell a business include; receiving a lump for sum pension planning or semi-retirement, retaining a minority shareholding with a regular income, business failure linked to unsustainable business debts or capitalising on growing markets niches. Likewise it may be possible to simply sell-off capital assets of the business over time and downsize while retaining valuable intellectual property rights and customer goodwill. Lastly it is worth considering how your family run business will be sold and the proceeds given to your relatives or heirs if you died suddenly.