4 No-Nonsense Tips for New Business Owners
In 2015, over 580,000 new businesses opened their doors in the United Kingdom. This record beat the figures for both 2012 and 2013 at 484,224 and 526,446, respectively.
In a survey conducted by social enterprise Cause4, researchers found that 25 percent of adults in the UK wanted to start their own business ventures in 2016. If you are one of those new business owners in the UK, here are four no-nonsense tips that can help you navigate the wonderful but challenging world of entrepreneurship.
1. Be specific about what you want to achieve.
Starting your own business is not just about selling your products and services to the local community. You have to set tangible goals and you have to go beyond just meeting sales quota every month. How do you see your business 5, 10 or 15 years from today? Where do you want to be?
2. Be practical about your finances.
Having a business is not all about profit. You have to spend and there are bills you need to settle as the sole owner of a business. These bills often come during January and April but, if these months also happen to be your lean months, it would be difficult to settle tax bills if you do not have enough working capital.
This is where applying for business loans, such as VAT loan funding from Corporate and Medical Finance Ltd., come in handy. As a business owner, you also have to be practical in choosing your financing options to help your business stay afloat until the next set of payments are due.
3. Watch your overhead costs.
As a start-up, you have to start planning your marketing strategies. When you realize that the majority of the expenses focus on office rental, advertising costs, and employee salaries, you will understand that there are many areas in the business wherein you can cut costs without compromising operations or employee morale. Keeping your overhead expenses as low as possible is a great way to create a safer net to make bolder decisions.
4. Know when to raise the white flag.
Adversity will always be part of an entrepreneur’s journey. Knowing when let go of a business is one of the top lessons and impressive trait a business owner could ever have. There is no shame in accepting defeat and using the lessons learned to rise from the ashes bearing a new business name and a better plan.
While starting a business is getting easier, the challenge is to stay relevant even in the early stages. These four no-nonsense tips can help you prepare for the challenging world of entrepreneurship, especially in the buzzing start-up scene.