So, you’re thinking of starting a new business – you have a brilliant idea and you’re prepared to take the plunge. But did you know that one in five new businesses fail in the UK every year? To ensure you do not become part of this statistic, read on to find out our top tips on how to ensure your company does not fail in year one.
Before you launch into a new business venture, it’s vital that you have at least some idea of what you are doing. Having no business knowledge or experience can spell disaster, so you should consider doing some training first, even if that’s simply brushing up on your soft skills like communication training online or listening to expert TED talks from successful entrepreneurs. You may decide to take an entrepreneurship course to gain some of the hard skills and insight that you need to succeed. And, of course, do lots of research into the field you are hoping to get into so that you can be prepared to take up gaps in the market.
Make a business plan
Once you have prepared your mindset and skills, you will be in a much better position to create a logical business plan. You need one even if you aren’t going to be presenting it to investors and shareholders because it means that you can visualise your plans and materialise them more easily. Outline why you are starting this particular business and what your goals are. Make this realistic and grounded within numbers and timeframes that you can use to measure your success later on.
Keep expenses low
Most companies fail because they go bankrupt so you should try to keep expenses as low as possible at first until you start to see increased sales and profits. Buy only the equipment and space that you really need to perform your operations instead of things you think you should use and go easy on the hiring front.
Nail the marketing
Without good marketing, no one will see your product and as a result, you will not see profits. Put time and effort into building consistent branding that people will recognise and put this on all your advertising campaigns. This can be in line with the above point – social media platforms are free to use and could be the difference maker between you and success. You have to know your target audience well in order to do this, so define them as specifically as you can and find out how to reach them. Create a positive brand image through persistent but friendly marketing and this is how potential customers or clients will find you and begin to trust you.