Do you want to know the best-kept business secret? Starting a business in the UK is EASY. So, when I get asked by potential entrepreneurs about starting a business from scratch – that’s the first thing I tell them.
“It’s easy”
And with 5.6 million micro businesses currently operating in the UK it seems like a lot of people agree with me.
Now here’s a question for you. Are you thinking that this could be the ideal time for you to join their ranks?
Starting A Business from Scratch Is Easy…
But is starting a business from scratch really that easy? Don’t you need a certain amount of knowledge; don’t you have to take a course or an exam first; aren’t there lots of legal and financial hoops you have to jump through?
No.
Well at least, not to get started.
In the UK, all you really have to do to start a business is tell HMRC that you’re trading.
Then, as long as you do your accounts (or get someone else to do them for you) and pay your tax bill on time, you’re in business.
…But Running A Business Takes Hard Work!
OK, so when I answer that ‘starting a business from scratch?’ question and I say it’s easy, my answer is a bit tongue-in-cheek.
Starting your own business is ridiculously simple, but starting is only the beginning.
Starting a business from scratch is easy, making it work. Now that’s a whole different story.
Once you’ve set up your business, you’ll have to run it, tell people about it, and keep it profitable.
I’m not going to sugar coat this part: running a business takes a LOT of hard work.
That’s why I give these four pieces of advice to anyone thing about starting a business from scratch because they can help to make the hard work easier.
1. If You are Starting a Business From Scratch Ask Yourself…
Why you, why this business and why now?
A successful business isn’t just about coming up with a great idea. Particularly when we’re talking about micro businesses, which in most cases are owned and run by just one person.
When you are your business, it’s even more important to understand exactly what you’re going to sell, how you’re going to sell it, and who you’re going to sell it to.
Questions you should ask yourself include:
- Why does this business exist?
- Why am I the right person to start this business?
- Can I describe exactly how my product or service benefits the customer?
- Who is my typical customer?
- Why would they buy this, from me?
If you don’t know the answer to any of these questions on day-one of your business you could be in for a bumpy ride.
2. Do Your Research
Adopting the Scouts’ famous motto, “Be Prepared!” will help pave your way towards a profitable business.
I once heard a successful entrepreneur explain that preparation is the key success factor in business.
And after decades of experience starting and running my own businesses, my own die-hard motto is this:
Planning is the missing link between Passion and Profit
(Have I convinced you yet?)
It’s easy to think that entrepreneurs are risk-takers who fly by the seat of their pants. But in reality, the successful ones have done their homework… continually researching their market, their industry, and their competition.
That way, when an opportunity comes along, they’re in the best possible position to grab it!
You could start your own preparation with these questions:
- Who is my competition, and how do I differ from them?
- What’s happening in my market/industry?
- Are there any upcoming changes that could impact my business (such as Brexit)?
3. If You Like It, Put A Price On It!
Charging the right price for your product or service is crucial.
Start by researching your competitors and assessing what they charge. Is your offering in the same range as theirs, or could you justify a higher price?
You could also survey potential customers, to find out what they’d be prepared to pay. Just make sure their answers are kept anonymous, so they can be completely honest.
And, the finally point I want to make here about price is – REMOVE EMOTION.
The price you charge for a product or service has to be based on specific, measurable factors and not on what you think you can get away with charging.
If you already have a business and are struggling to take the emotional ‘am I worth it’ aspect out of your prices, why not have a chat with me?
4. Have a Business Plan
Business planning doesn’t have to be complicated, it should be simple and achievable.
Check out my One Page Business Plan to see just how simple it can be.
If you need more help, why not book a complimentary, half-hour Breakthrough Session? We’ll talk about what’s holding you back, and I’ll explain more about Business Mentoring, and how I can support you on your journey.