Sub-topic
Start up and business planning
Self employment
Starting a business of your own is a huge and exciting challenge. This guide outlines some of the key things you should consider before you take that big step.
Before you start your business, you need to decide what sort of business it is going to be.
Developing your business idea into a viable product or service is a critical part of building a business
One of the toughest things about running your own business is feeling that you have to do it all on your own and wondering how you are going to fund it. Rest assured, no-one expects you to know everything and there’s plenty of support out there.
Although starting your business is an exciting prospect, there are a number of tax and legal issues that you have to consider.
Launching a small business can be risky and success is not always guaranteed
Business plan
Planning what you want to do in your business is an important part of making your business a success.
Market research
It’s easy to believe you have an excellent idea for a business, however, if your business is to be a success, you need to confirm and verify that belief.
The world is moving fast and it’s important to identify the trends in your market, locally, nationally and globally.
Everyone has competitors and it’s important to know who they are and what they offer.
Knowing who is likely to buy your product or service is fundamental to your business.
Market research is about gathering information to help you make better decisions.
Market research is about gathering information so that you are better informed and can make better decisions about your business.
Marketing
Marketing is about making sure the right people know about what you have to offer, getting them to come to you and getting them to buy.
Whilst the answer to this question may seem obvious, your approach to it can be the difference between success and failure.
Forget trying to sell to everyone. Instead you want to sell to people who you know will want your product or servic
It is important to make sure your product or service is available in the right place at the right time and in the right quality.
Getting your message in front of potential customers and persuading them to buy is a challenge.
Before you jump into “doing” marketing or spending any money on marketing, it’s essential to pull everything together in a Marketing Action Plan.
Marketing is all about finding the right customer for your products and services and getting them to come to you.
The very first customer is always the hardest to land.
Customers, sales, research
Finance
Setting prices is challenging. The amount of profit you make depends to a great extent on the prices you charge, so getting the price right is vital to your business success.
In order for your business to survive, you need to have enough money to cover all your start-up costs, the costs of running the business and also for you to live on.
The first step in setting prices it to establish your costs.
Now that you’ve identified what it costs to start and run your business, you can work out the cost of producing your product or providing your service.
Pricing is a complex area. Set your prices too high and you may lose the sale.
It can be a number of months before a new business is profitable and generating a cash surplus.
Funding, grants, finance
Managing your finances
A vital part of running a successful business is looking after your finances. When they’re put together in the right way, the numbers paint a detailed picture and tell stories about your business.
Your cashflow shows the amount of cash coming in and going out of the business each month
A Profit and Loss Account shows the financial performance of your business over a specific period.
Forecasting sales is an important part of business planning.
A Balance Sheet gives you a snapshot of the financial state of your business at a given point in time. It is used to assess the value of your business and to work out the ratios which evaluate business performance. This section gives you an overview of the Balance Sheet and also explains the most
Value Added Tax (VAT) is a transaction tax charged on the sale of goods and services
The importance of good financial management is emphasised throughout this module.
A vital part of running a successful business is looking after your finances. When they’re put together in the right way,
Building a team
When you start a business, you need to choose the legal status of your business, You have to decide if you are going to run it as a Sole Trader, a Partnership, or a Limited Company.
Taking on a directorship is a serious undertaking. It can be a fulfilling and prestigious role.
As has already been explained, the directors run a limited company and the shareholders (members) own and fund it
Corporate governance is the system by which companies are directed and controlled.
For many small business owners, working with a board of directors can be a new experience and can be a challenge.
Taking on your first employee is one of the most important steps in the development of your business.
Small businesses can find the recruitment process a daunting prospect. They are concerned that it’s a complicated process, and that there are challenges at every stage.
Having made your decision and selected your candidate, there are a number of things to consider before they become an employee.
When you take on an employee for the first time, there are a number of key things you need to do under UK law.
Further guides
This guide provides an introduction to the General Data Protection Regulation.
f you're thinking about running your own business, buying a company that's already established may be quicker and easier than starting from scratch.
Taking on a franchise is an option worth considering for anyone who wants to run a business but doesn't have a specific business idea or prefers the security provided by an established concept.
Buying an established business is a good option for some aspiring entrepreneurs. Much of the groundwork for success may have already been done by the existing owners.
If you are thinking of starting your own business you should consider the possibility of working from home. Home-based businesses are a popular option for many types of smaller business. Generally the costs will be lower, you can avoid travel expenses and you have the freedom and flexibility to work
If you are planning to set up and run a 'work at home' business, there are a number of points to check before you begin.
Choosing a name for your business is a creative and enjoyable process.
Starting a business, although highly exciting, is a big step to take.
Insurance can protect your business against damage to, or the loss of, physical assets.
Outsourcing is when you contract out a business function - a particular task, role or process - to a third party over a substantial period of time. This third-party organisation takes control of the function and becomes responsible for its success.
Business Startup Factsheets
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