Did you know that a rocket uses more than 90% of its fuel to take off? In much the same way it will take 90% of effort on your part to launch any new business ideas that you may have.
With us now facing one of the worst global downturns since the Second World War resulting in higher numbers of people being made redundant or having pay freezes, it is not surprising that more and more people are now considering starting their own business.
Ironically the opportunities for starting a successful business in a recession are huge. Indeed, famous companies like apple, Microsoft and face book were all started in a recession.
However, before committing to starting your own business you will need to first of all ask yourself whether you will be suited to becoming your own boss. You will need to research what will be involved with running your own business to see if you have got what it takes to cope with... no guaranteed income, lots of hard work at the beginning, no spare time for family and the stress of controlling your own financial destiny and so on.
If you decide that you have what it takes then the following points will help you to succeed:
Write a business plan
Writing a good business plan can make the difference between your business succeeding or failing. Not only will it detail your objectives and goals but it will also help to convince potential lenders to have the confidence in your idea to lend you money on the strength of your proposals.
Many banks, if they feel confident with your business plans, will sometimes also offer what is known as a facility, which is an amount of money reserved for you that can be taken as and when you want. The advantage of this is that you will then only pay interest on the money that you have actually used which can be a massive help financially when you are starting off in business.
Research Your Business Idea
Carry out thorough research on your business idea. Find out what your competitors are offering and think how you can offer better.
Examine who you think your target audience are? Young, old, the lifestyle they have and why will they want to buy from you rather than your competitors?
Keep start up costs down
Try to keep your business start up costs low in order to keep as much spare cash as possible as a cash flow for your business.
For example do you need to go to the expense of having office premises or could you just as easily run a business from home operating from a spare room in your house?
Talk to H M Revenue and Customs who will be able to offer valuable advice about tax issues that may be able to also help you to save money.
Good Bookkeeping
Make sure that you have a good bookkeeping system.Good bookkeeping can keep track of your business progress from the onset. Make sure that you keep all receipts and invoices, even ones from before setting up your business if they relate to your business.
It is also beneficial to make sure that you monitor your cash flow weekly and that you stick to your budgets.
Make sure that loved ones are "onboard"
Starting a new business can involve working long hours at the beginning with having to make sacrifices along the way. Before you start a business from home make sure that those closest to you are fully aware of what will be involved with your venture...Working long hours especially in the first year, no extra cash for a while and a part of the home becoming an office,to name but a few.
There will be enough pressure in the first few months of starting a new business, without the stress of falling out with loved ones too.
Let your customers know that you exist
In order to get the all important customers for your business you will need to find the best ways to market your business.
This will be largely dependent on what type of business that you start. If, for example you are starting a plumbing company, advertising in local press or sending out flyers will be an effective form of marketing for your business. Whereas if you are starting an online business you will need to ensure that you have good SEO in order for potential customers to know that you exist and to find your website.
You will need to test various methods of marketing and be prepared to be flexible to change if certain forms of marketing do not work well for your business.
Have an alternative means of income
When starting your own business it is better to work it part time around your current job before taking the step to lose a regular income. This will give you valuable time to test the success of your business idea while making extra money at the same time.
If you have been made unemployed and cannot work around a current job, it is advisable to keep some money aside to cover your outgoings while you are waiting for any business profits.
It can take anything between 6-12 months before there will be any profits from your business which will mean needing an alternative means of income for that period of time. Even when you have succeeded to create a profitable business it is better not to take too much income for as long as possible in case your business suffers a temporary slump in sales.
Sadly there is no fool safe way to know how to run your own business, but the most important factors to take into account are to work hard and to allow time for your business to grow. It will not happen overnight but if you carry out thorough research and market your business well and ensure that you stick to your budget and regularly monitor your finances, you will eventually create a successful business.
Just remember actually setting up your business is what will require the most effort and hard work on your part. Once you have put in the effort, like the rocket that successfully completes its mission, you too will reap the rewards from the eventual success of your business.
