Before you start your own business it is important to make a proper business plan. This will be essential for getting professional support, including financial backing. A business plan will help you to identify the strengths and weaknesses in your business proposal, and pinpoint where you may need professional help.
Business plan
Product/Service - decide the product or service that are you offering, and whether there is there a market and customers who will pay for it.What makes your product/service better than those already on the market? Having a 'unique selling point' (USP) can be important for success. You need to investigate your particular market and especially your business competitors - market research from your customers and using data and information from business organisations and government agencies can help. Consider the future development of your product.
Marketing: Focus on your customer profile and why they will want to buy your product. How do you plan to sell your service - from a shop, by telephone, online or other means?
Decide on the marketing campaign. You also need to take into account the location and timing of the advertising - for instance, seasonal effects on the market can be vital.
Finance: Calculate your expected monthly income and outgoings, and realistically predict the profit you hope to achieve - don't be over-optimistic about your sales prediction. Decide how much finance you will need to run your business - most start-up businesses have to establish a workplace, purchase equipment and fund marketing costs before they even make their first sale. If your business is likely to experience peaks and troughs in its cashflow you should discuss this with your bank, as they may be able to arrange a flexible overdraft account to suit your needs. When you are looking for support or finance it is important to have plans for any possible business problems - setting up an emergency fund is a good form of insurance. Consider your long-term business plan and how you can enable your business to grow, such as future expansion and updating your product or service.
Becoming your own boss is exciting and challenging. There is a lot of information and advice available on starting up a new business, and your local enterprise agency can offer free professional help. Check the government support and grants that you may be entitled to apply for. Being your own boss may bring greater responsibility, but it can bring personal satisfaction and job satisfaction.
Whether you are already running your own business, trying to get started or are just considering becoming your own boss, you're very likely to need extra cash to invest in your business at some stage. Find the right finance for your business needs - a competitive, low APR business loan from a top specialist lender.
By: Fiona Howard