Starting your own business is a daunting task for even the most experienced of bosses. Running a company requires many overheads and other factors that you may not have necessarily considered when you came up with your great idea for a company. For any small start up to be successful there three key things to remember.
Get your finances in place
It is so easy to get excited about your great idea for a business and forget about the practicalities. While being passionate about your new business concept is an important factor for success, going from expert to Business Owner is a big change. You may have the expertise to succeed in your field, but starting a business requires a whole host of other skills that might be new to you. Before you dive in, take the time to fully assess your finances.
If you will be relying on savings for the first few months as you build your business, make sure these foundations are solid, and do the maths to make sure you have enough to cover you for all expenses, including the unexpected ones. Before you make the leap to self-employment, make sure that your financial situation is secure. Repay any debts, build cash reserves and apply for a small business loan to ensure that you will not be one of the 50% of UK businesses that fail within the first five years.
Prioritise what to spend your time and money on
When you are building a business from scratch, even the smallest of details seem critical, and it is easy to get wrapped up in trying to perfect everything. Don’t sweat the small stuff- focus on the bigger picture and more often than not, everything else will eventually fall into place. Spend your time and energy where it counts, whether that means building contacts, retaining a loyal customer base or ensuring you have a quality product. Invest wisely in only the necessities, and save as much money as you can for future expenses. It can be helpful to remember not to spend money that you haven’t made yet.
Outsource anything you don’t have the skills for
Running a business requires a multitude of different skillsets, and it is very rare that one person has all of these. Spending hours trying to teach yourself how to do things such as build a website, pay your taxes or applying for copyrights might not pay off in the long run, if it takes away from the time you have to spend on actually doing business. Outsource important tasks to professionals- not only will they be done quicker, you can also be assured that it will be done properly, giving you peace of mind. Consider outsourcing as an investment in the future of your business – consulting a commercial lawyer can help you to ensure your business is compliant, avoiding any potential future costs. Using professional services can end up paying for itself, as it frees up more time for you to build the business and increase profits, which then cover the cost of outsourcing.
Building a profitable small business isn’t easy, but remembering these three key tips should help as you set off on the road to success.