Starting a new business has never been an easy task. As an entrepreneur, many things have to be taken into consideration to ensure that your new business venture is planned correctly and will have a smooth launch. Not to mention that the initial stages of planning the business can make or break how the company runs afterwards. This means that your business plan must be well-researched and written.
If you have always wanted to start your own business but never found the right time or had the courage to embark on this venture, 2022 is the year you should reconsider this thought and even start planning. After two years during a tremendous health crisis like no other was seen before, more and more employees have changed their career plans. Whether they prefer remote work now or want to start their own business, there is no denying that behaviours and future plans have changed quite drastically.
To be more specific, in the UK, more than 3 million employees want to start and own their businesses in 2022 – that is 42% of UK workers. Not to mention that as much as 74% of budding entrepreneurs in the UK have stated that the coronavirus pandemic has influenced their decision to start a business, accelerating it. According to the study revealed by Intuit QuickBooks at the beginning of the year, this data is current and relevant to today’s market and business climate.
Moreover, because the inflation rate is at an all-time high, the cost of living has increased tremendously. While this is happening, the average income has remained at the same level, causing people to worry about their financial situations and forcing them to change how they spend their money. For this reason, 97% of UK employees want to start a business to improve their income. With more and more people preferring small and medium-sized businesses, creating your own company will fit consumer demand as well as bring you personal and financial satisfaction.
So, never before has there ever been such a good time to start a business. If you are ready for this mission, here are the steps you should follow:
First things first. You must conduct market research when you start thinking about opening a business. Only this way can you finalise and decide on a business idea, as this helps you see whether there is any demand for the product or service you will provide.
Therefore, the first step in your business venture is to conduct thorough market research as well as industry research to see which are the trends and consumer behaviours in relation to your possible business idea. Based on this, you will adjust, change and solidify it. So, you should not underestimate this part of the process – it is crucial for the next step on your journey.
Research, research, research. This should be the approach you take throughout the entire business planning process, as this is how you will be able to write and put together a well-established business plan, relevant to today’s market, industry environment and consumer trends.
As mentioned above, the market research you conduct will inform and solidify your idea so that you can build a company that provides supply to demand and fills a gap in the market. Just as important is your competitor analysis, as you want to know who your competitors are and how they are doing.
All these aspects will be introduced in your business plan, including a detailed finance strategy. The latter is crucial when you start searching for funding or decide to apply for a business loan. It is of the utmost importance to think and plan your business finances to demonstrate you know what you are talking about.
It may seem unnecessary to mention this, but any budding entrepreneur and new business owner should take their time to find a business name that is both easy to remember and unique. Given that you are starting a new business, you want to find the right name from the beginning rather than changing it right away. Doing this can confuse your new customers when you want to earn their loyalty.
Therefore, it is recommended to allocate yourself enough time to find a suitable name for your home business. Given that this is your first project, it is undoubtedly extremely special for you, so you could make a combination of your name. For example, if you have a double-barrel surname, you could find a way to mix the two together or creatively use their initials.
Doing this will make your business truly yours, and not just in official documents, which will definitely increase your excitement when you see it in a logo or on company products and packaging later on. As soon as you have decided on the right name, you should register your business. Now, this is official!
Given that you are launching a home business, it is crucial you set up a proper office at home. Because the place where you live is also where you work, it is of the utmost importance to separate the two. It isn’t recommended to mix personal and professional life too much, as it can interfere with one another, which will end up harming both.
For this reason, you need to choose a designated place that is free from clutter and distractions, such as any house chores. Plus, it is crucial to invest in the right furniture that supports your posture, such as an ergonomic chair and a proper desk to install all your devices.
A vital and noteworthy mention is looking into the needed permissions, in line with the type of business you are about to conduct from home.
Indeed, for a small business that operates remotely – from your home – and is so young, it isn’t necessary to start hiring a large team of professionals. However, hiring a specialised accountant is extremely necessary. Regardless of how well you can manage finances, it is highly recommended to bring a professional who can deal with all accounting operations.
This way, your business finances will be handled appropriately at all times, so you can focus on expanding the company and brainstorm innovative ideas. For example, when you start thinking about marketing strategies, it is vital to have an accountant help you accomplish all your creative ideas.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.