The 8-step plan to starting a business

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Starting a business can be scary, but that doesn’t mean you shouldn’t do it. On the contrary as long as you have thought it through properly it could be the best thing you ever did.  Set out below is our 8 steps plan:

  1. Weigh up your business idea
    Have you brainstormed the idea with other people? Have you thought it through properly? Does it have legs?
  2. Get writing your one-page business plan  
    Set out your goal and how you plan to get there.
  3. Get your thinking cap on – Do your research
    Think about your potential customers?  Are they niche or will your customer base be broad?  What type of customer would you like to have?   Have a look at what your potential competitors are doing? What do you like that they do and what don’t you like? What could you do better?
  4. Eek now for the numbers!  Build your sales forecast
    Think about what you are going to sell and give it a unit price?
    Consider how many units you think you are going to sell by month (if you have past data use it!)
    Consider the price of those units and project them (NB: unit x price = sales)
    For your projected prices set your average costs per unit.  (NB: Gross margin = sales – cost of sales)
    To get your cost of sales = unit sales x average monthly cost.  You then have your sales forecast!
    Remember to use common sense and be guided by analysis.
  5. More numbers… Create a budget 
    This is where you work out how much money you think the business will make eg how much money you make after tax, calculate expenses, staff costs etc.
  6. The devil is in the detail – Write a long-form business plan
    Tell the reader what your business is and why it will be successful, describe your business, market analysis, how will it be structured, what will you sell, how will you promote it, how much funding do you need and your financial projections.
  7. Sorting out the finance 
    Work out how much you need, and how to get it.
  8. Get on the business superhighway
    On your marks, get set, go.  NB: Find out what you need to do to be tax compliant.

If you would like to discuss this topic further please contact us on 0845 555 8844 or complete our enquiry form and we will get in touch with you.

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