Starting a Business in 7 simple steps. Alex Ritchie
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Название: Starting a Business in 7 simple steps
Автор: Alex Ritchie
Издательство: HarperCollins
Жанр: Зарубежная деловая литература
isbn: 9780007556786
isbn:
Here are a few things you should also consider.
Global versus localWill your business sell its products or services internationally or more locally in your neighbourhood or community? You might do both, which will take more effort and money, so think carefully before you decide upon world domination.
Footfall on the high streetIf you’re setting up a physical shop, where’s the best location for what you do? Do you need passing trade or do you work by appointment? If empty premises catch your eye, spend a few days counting how many people pass by at different times during the day as this will be your footfall if you had that space.
CostsIf you have premises, you’ll incur a number of costs, such as business rates, and you’ll need public liability insurance (see here). Factor all of this in when planning as it adds up. Some areas have business incentive schemes; speak to the local Chamber of Commerce wherever you end up.
Networks and support
You know the old adage: ‘It’s not what you know, it’s who you know’? Well, here’s an updated version: ‘It’s not what you know, how much money you have or how brilliant you think your idea is, it’s who you know that will be the difference between success and a hard old slog’. While that’s a bit of a mouthful, in business it’s true, and you’ll find over time that networks and making connections might be even more important to your business than money.
Although in the UK the Government-backed business support environment has shrunk somewhat over the last few years during the economic recession, there are still organizations out there that can help you to get your business idea off the ground. In the UK, look at organizations such as the National Enterprise Network, UK Trade and Investment, and Chambers of Commerce. Most of these will have local branches and some offer access to finance alongside advice.
Networks and networking
As you start working on your business, the opportunities for growing your network will increase and you’ll make connections all the time, for example, with suppliers, customers or other local businesses. It’s important to seize these opportunities and find out if there are any networking events that might be available for you to attend in your industry sector or your local area.
Networking tips
Play niceIt’s important to play nice when networking as bullish over-sellers who take without giving are often shunned or seen as people not worth doing business with.
Give moreGive more than you get in order to create a strong group of business connections that will take your call night or day and help you to win contracts, sell products or just listen and share advice when times are tough.
Stay connectedIt’s nice to check in with people from time to time without asking anything of them. Drop them an email or give them a call for a chat or to arrange a coffee. Alternatively, there are some great social media tools that help you to stay connected with the people you meet out and about. LinkedIn® is a great way of sharing and staying in contact with your network, as is Facebook, depending on the sort of business you run. Find out what works for your industry and get online.
Money, money, money
Ah! We find ourselves on the all-too-important topic of money. It’s a fact that without it your business won’t get very far, but how do you get enough to get started, and what should you spend it on? As part of your business planning process, make a list of necessary purchases and expenditure required in order to start up and run your business. (See Step 6.)
Money to get the business up and running
There are four main ways most people get enough money to get their idea off the ground and catapulted into a fully-fledged business. Of course, it all depends on the scale of your operation and whether or not you need to buy stock, set up an office or work internationally. But it’s a good start to know the main sources.
Savings and personal finance
The vast majority of people start their business using personal savings of some sort. If you intend to start small or run your business alongside having a job, this might be a good option for you as there is less risk involved and you’re accountable only to yourself for recouping the money.
Family and friends
Family and friends are the next most common source of business funding. They’re a good source of finance to start with if you need a few thousand pounds to set up premises or buy stock. It’s always worth considering the worst case scenario, however: what happens if you can’t pay back the money? What would happen if they wanted their money back early? Do you want them getting involved in the day-to-day affairs of your business? The best course of action is to set up an investor agreement – a legally binding document outlining the amount of investment, the payment terms and any involvement the investor may have in the management of the company. As a minimum, have some form of written contract outlining what would happen in each case and what you are liable for. You don’t want your twenty-year friendship to break down as a result of borrowing money without clear expectations to begin with.
Banks
If you need a large cash outlay to begin with, it’s worth setting up a meeting with a business banking manager to find out what they can offer you in terms of loans or overdraft facilities. They’ll want to see a business plan (see Step 2) and might even give you a template to use.
If you need larger amounts of capital to purchase stock or you need to buy what banks call assets, for example, machinery, cars and property, you may need a loan to get moving. It’s worth noting that banks in the UK, for example, don’t seem to be lending money on the same scale as they were a few years ago, so go fully prepared and be ready for detailed questions and knock-backs.
Lending circles and crowd funding
Lending circles and crowd funding are a relatively new phenomenon. The principle here is that lots of people give small amounts of money that count towards your total loan. It works well for creative businesses or social enterprises that can target people who are interested in the cause behind what the business or enterprise does. Depending on the platform, the money might be an investment or given in return for a first run of products. Benefits could include lower СКАЧАТЬ