Starting a business is a lot more difficult these days then it was around 20 years ago. Even 10 years ago there was a better market, as a lot of change can happen in the span of a single year alone. However, it doesn’t have to be overcomplicated if you have some experience on your side, as well as knowing what to look out for. If you’re a millennial and looking to build your own commercial future, take a look at this list of considerations when it comes to making your own brand flourish for the future.
Research The Market Thoroughly
A startup cannot start without doing some market research. When they say that ‘knowledge is power,’ they’re really not lying to you. There’s no point trying to run an effective business that turns a profit if you don’t know who you’re selling to or what they want. But how can it be done?
Through primary and secondary data. Sometimes trends can even be predicted, and you can base your profit and loss on them. If an industry has boomed before, it can again, and you can even revitalise them with your own move into a certain business world. Historical research using secondary data, that is often free, is a great way to take advantage of business tracking, and can benefit you just as much as primary data.
Also be sure to do a competitive analysis. This is more important than ever with finances being the way they are, you need to know whether you can have any price advantages over anyone else in your sector. You can even take on some of their previous start up ideas to see what got them where they are.
Know How Realistic It Is To Go Into Business Fast
Fast growth doesn’t have to be a complicated matter. If you have a fast growing business, use it to motivate both your employees and customers by crooning about your successes. It’s also a wonderful marketing strategy to bring in new talent constantly.
If you think fast growth is something achievable for your company, measure it up first. Know what the market value of what you sell is, and compare it against your costs. This way, you’ll know if it’s worth it to both start and grow a company.
If you have the type of small business you can start on your own, then in a few hours you should be good to go. But make sure the time is right for you and potential customers.
Consider Your Business Type
Having a sole proprietorship will mean everything is up to you and has to be done by you. Whilst you don’t have to declare anything on legal forms about this kind of business, you are liable for literally everything that goes in and out of your business.
One type of business that’s great for the current market is running a limited company. You won’t be paying as much personal tax as you would as a sole trader, and corporate tax is only 19% of what you make. Whilst limited companies are beneficial nowadays, they have their drawbacks. If you’re running a limited company, then you’ll need to be sure of any HMRC late filing penalties, as these can get very serious very quickly, and it can be a cutthroat world when it comes to falling into debt and needing to pay fines. Don’t be scared off by this though, just know what you need to do and keep to it.
Another good business type is to have a partnership, and therefore everything is shared between two of you. You have a lot more ability and chance to raise your finances as a result, as two heads are better than one. However, fallouts can happen a lot between two friend or partners, which makes this a bit of a risky strategy when a business depends upon the two of you getting along.
This isn’t an exhaustive list, and plenty of detail should go into your business plan, but these are some of the areas that need the most consideration with rising inflation and trade deals going awry across the globe. The market can be good or bad depending on what day it is, but you can learn to subvert it with your strong business brand. As long as you have customers you’ll be able to buy and sell. Don’t rush into business deals, and make your business plan adaptable. Good luck in your pursuits!