If you ever find yourself at a point when you’re thinking about starting a business, there are some points that are important to consider. Innovate UK have compiled a list of four top tips that will help your company succeed where others have failed.
To start a business is both a difficult and ambitious decision to make. It’s a decision which shouldn’t be taken lightly. Before you take the plunge you should evaluate your product or service without bias. Do some market research but don’t just settle for people who know you – branch out and ask the general public. Look to find out whether your product/service is desirable and if it gratifies or resolves an issue that affects your target audience. Think about whether your idea is disruptive to the current target market. Plan out what sets you apart from the competition and what makes you unique. Can it actually be monetised? If you’re not able to actually convert your product/service into money, then it may not succeed as a business.
A Bit of Research Will Go a Long Way
So you’ve got the idea sorted, now you need a market to enter into. The more research you do, the more likely you are to succeed. It isn’t just enough to know who your demographic and niche market is, you must see whether they will actually pay for your product. You should be aware of the growth of the sector you’re getting into and what effect this has on your competitors. Speaking of competitors, you should study their every move. If they’re successful then ask yourself why. What are they doing that can be emulated by your business? Find out how much your competition is charging for their service and contemplate whether your price points are realistic in comparison. Is there likely to be any entrance into the market from an indirect competitor? If this looks even remotely likely then prepare for how your company will adapt.
Assemble Your Team
You’re now ready to take your business to market, you just need a team of superstar employees to help implement your business plan. Take a moment to think about what’s best for your company. Would it be better to employ a team, partner with a co-founder or outsource your workload? If you decide to take on employees, then be aware that the success of your business will rely on the competence of your workers. Evaluate the skills that are required and analyse whether your personnel can execute your business plan to your exacting standards. The quality of your staff can make or break your company.
Have a Financial Plan
Half of all new businesses fail within the first five years and usually this is because of a lack of money. You need to have a long-term, structured financial plan. This will ensure that you don’t run out of money prematurely or have any nasty surprises waiting around the corner. If you’re aware of what your finances are doing, then you’re in a better position to ride out any tough times. You need to be aware of how long your initial investment will actually last as well as when you expect to start making money. Be realistic at every moment, demand won’t be high when you first start out. If you take on employees, then this is something else that should be incorporated into your plan as well as any production costs you may have.
About Innovate UK
Innovate UK is the UK's innovation agency. They work with people, companies and partner organisations to find and drive the science and technology innovations that will grow the UK economy. It is an executive non-departmental public body, sponsored by the Department for Business, Innovation & Skills.
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