How to Start a Business from Scratch? – Ready For it! Think Again (Part 1)

So you want to start a business in the United Kingdom – but where do you begin? What do you need? How do you get started? Where can you go to get support? Starting a business is hard. Starting a business is a decision that has long-term implications. After all, you do not start a business with the intention of closing it shortly. Starting a business can be complicated and time-consuming, so it’s understandable that you might steer clear from the thought of running your own company. This guide is designed to help British entrepreneurs learn more about what it takes to get their new enterprise up and running in the UK. We take you through the process of deciding what type of business you want to start, establishing your business name, finding a location for your business, and registering for your company at Companies House. There is a lot to learn and understand before you are ready and set to start your very own business. So this guide is divided into two parts.

This first part will discuss what most business advisory services providers do not discuss in their blogs. When going through millions of blogs and articles on the internet about how to start a business, most of them talk about different steps but never talk about the main element that is your business idea.

Starting a business brings great joy, especially if you are working with your unique business idea. However, how do you know that your business idea will work? To be honest, there is no right answer to this. However, that does not mean we scrap the idea. It is important to understand whether your business idea has legs meaning whether it is feasible or not. One common way to understand the business idea feasibility is to research. And when we say research, we mean proper research. Thus this seem vague? Let us explain it to you. Researching is one of the most important aspects of launching a new business. Checking the feasibility is not simple. You can check the following parameter:

1. Research: Demand of your Product & Service

Before you invest in any business, you might want first to research the market and consumer needs and understand the demand for your product or service. You need to know the demand for your product. You need to have a well-defined, in-demand product. There is a saying that says, “if you build it, they will come”, in this case, don’t build it unless there is a demand for it.

2. Research: Market Size and Saturation Status

There are many things to consider when deciding if a particular market is viable for a start-up business. One of the most important is the size and saturation status, which is how much competition that industry or niche provides. The smaller the market, the less work it requires to develop a product and get started, but it also means there’s not as much opportunity financially.

3. Research: Your Target Audience

You need to know who your target audience will be, what they are looking for, and their limitations. This may seem like much work, but the more complex your product or service is, the more time you will spend researching it before investing in it. You may need to conduct interviews, surveys, and seminars with several investors before finding the right one. Do whatever it takes to get a clear picture of your target audience. Your success depends on it.

4. Research: Competition

Researching about competitors is important because it will give you a clear idea of how your business stacks up against the competition. Make sure you are doing something that is not already being done well by your competition. Find out what your competition is doing wrong and how you can do it better.

5. Research: Resource Needed for Final Product or Service

Your research should include the best location, type of business you want to start, how much it might cost, what you need to do for this business, how long it will take to get the resources. The internet is a great resource that you should utilize. You can search for potential suppliers, distributors and manufacturers that can provide the necessary resources you need to start your business. This research will also allow you to find ways to reduce the costs of production.

6. Research: Pricing Strategy

A pricing strategy is a way in which you set your prices for goods and services. If you want to be profitable, it is important to make sure that you price your products correctly. The pricing strategy is also dependent on your competitors’ prices. There are other factors that impact your pricing strategy; ensure to understand every factor and its importance. You don’t want to price too high or too low.

7. Prepare: Preliminary Business Plan

The last step is to prepare a preliminary business plan. This can be a simple document as this is just a preliminary document that can help you decide the feasibility of your business. The purpose of the plan is to ensure that you have all the financial and physical resources needed for your business, that there is enough market for your product or service, and that you understand existing and potential competition. This business plan will help ensure that you’re not wasting time on something with little chance of success.

Understand that these seven steps are an ongoing process. No one settles for the first business plan they come across with. You have to validate your every idea with steps. Know that it is okay to scrap your idea. You just need to improvise and come up with new ideas. Like we said, not every business idea is a hit, and you might face many wonderful business ideas which you might have to dump.

If you find a potential idea but can’t risk your stability, you can use the time available. Not everyone can quit their full-time job and pursue launching something of their own. There might be many commitments that require you to be financially stable. You can still start a business in your spare time. This will help you launch the business gradually, with less pressure to make hasty decisions.

Useful Watch:

Whether it is a hobby or business, we recommend you must keep financial records of all business activity. You can even hire an accounting and bookkeeping services provider who can help you streamline your business finance for you.