Are you looking to start your own business, or are you struggling to keep your new business afloat? Here are six points that should keep you in the right direction.
1. Research your market space
It’s essential that you research the market and find a niche that you can fill. Something you are confident in working with and that you have knowledge on. Ensure you choose your client size carefully as it’s not only about winning the client, it’s also about having the capacity and tools to service your client on a continuous basis.
2. Know your goals
Every successful business has a plan and a set of achievable goals. Without a plan and goals your business will have no compass to follow and you may well end up losing money and clients. Create a business plan that is flexible and can change with your business, and identify goals that you can use as stepping stones to your success.
3. Understand your target audience
Understand your target audience, this is a big reason why some SMEs fail, because they don’t have a handle on their target audience. You need to know why your product or service is valuable to particular consumers. Develop a marketing strategy to target these consumers and grow your business.
4. Choose the correct legal structure
Do your research to discover whether you should legalise your business as a sole trader, company, partnership or a trust. This is an important business decision as each business structure poses different levels of risk to the owners, partners or directors. To ensure that you select the right type of structure for your new business, always consult a legal expert for their advice.
5. Know your budget
Financing a start-up business can be difficult, so do your research to ensure you haven’t underestimated potential costs. There are various options to finance your business, from self savings, a business loan (you will need a business plan to apply for a loan), friends, family or a small business grant. You need to realistically estimate your expected costs and be able to fund them while operating at full capacity until your business revenue grows.
6. Minimise your risks
Risk minimisation starts with the right insurance policies! To minimise your risks is to have the right type of insurance cover in place. Public liability, workers compensation, property insurance, cyber insurance and business interruption insurances are some of the policies that can help protect your business if an incident occurs. Without suitable insurance cover, you will increase the risk of unforeseen expenses or losing your business. Avoid this risk with the right insurance cover.
Opening up your own business takes courage and involves a lot of hard work, dedication, and not to mention financial and physical resources, so it is important to have the right type of insurance covering your business to protect your livelihood. Plan ahead and let one of our local advisers help you insure your business today.