Starting a business is one of the most exciting things that you can do and there are so many benefits to doing so, from being your own boss to being passionate about and invested in your work.
However, as you may already know, success is never promised in modern-day business, which is highlighted by the fact that 60% of new businesses in the UK fail in their first three years. This is why you need to be sure that you’re ready to start your business. If you’re not, then you may struggle to hit the ground running.
We’ll help you to decide if it’s the right time to take the plunge. In this article, we’ll discuss some of the main things that you should consider before starting your business as well as the best first steps to improve your chances of building a successful brand.
Your financial situation
No matter how successful a business is, making money in your first few months of trading can be tough. That’s why ensuring that you have a good amount of savings or financial backing from investors is imperative. Failure to have this funding may mean that you have to shut up shop much earlier than anticipated.
Finances play a major role in the opening of your business as upfront costs to get things going can be significant. On average, new businesses can expect to spend around £5,000 at launch and then another £22,000 across the rest of their first year. This is why you should calculate your projected costs beforehand to see if you can afford to start your business.
Ready to take the risk?
With success not assured, you need to consider what the worst-case scenario could look like and make sure that you could handle it as well as just taking measures to avoid it. You’ll have to work hard to stay afloat but, if your business is set up correctly, you can reduce the chances of failing.
There are some precautions that you can take such as researching the right business insurance or getting advice from a consultant with relevant experience.
Consider whether you’re needed
An important part of knowing if it’s the right time to start your business is confirming that there’s enough demand for you to supply. Extensive market research is important; let your target market tell you if they need your products or services.
If they do and you’ve found a gap in the market, then you’ve got a great opportunity. Put together your business plan to confirm that everything adds up, including identifying from where you funding will come, and look into the ideal location from which to sell your goods to give yourself the best chance of success.
