Expert advice on starting a business
14 Apr 2014 11:34 AM
Thinking of
starting your own company? Business adviser Helen Watson explains what budding
entrepreneurs need to consider.
Helen Watson is an adviser for
the Business Support Helpline, which is open Monday to Friday, 9am to 6pm, on
0300 456 3565. You can also visit the
website.
Starting a business is exciting,
but it can seem daunting at times, which is why people call the Business
Support Helpline. Around 80 per cent of callers are at the start up stage,
looking to get their business off the ground.
Each budding entrepreneur is
totally different. Some of the callers are confident, looking to build not just
a small firm, but a global brand. But even though they may need less support,
they still appreciate being able to test ideas with an impartial advisor. Some
callers however, are less certain and don’t know where to start. With
these people, we offer not just practical advice, but also an empathetic and
understanding sounding board.
Gap in the
market
Although the business ideas vary
hugely – from an arm-wrestling club to importing exotic seeds – we
usually start with the same important questions for everyone. Firstly, we ask
about the customer – it’s vital to understand their personality,
circumstances, and reason for starting a business. Some people have been made
redundant, others are looking for a way to come off benefits. Maybe
they’ve taken time off and have come up with a fantastic invention, or
they are making crafts at home and have spotted a gap in the market. Or perhaps
they are working for someone else, but think they could do it better, quicker,
cheaper or faster!
Do your
research
Whatever the reason, we need to
make sure they’ve done their research. Some people assure us that all
their friends and family think their idea is fantastic and bound to succeed,
but we emphasise that wider research is the key to success in the long term. We
encourage them to visit their local library and do some thorough market
research, search online for available statistics and check out the local
competition. Setting up a business is exciting, but it can’t be done
simply on the spur of the moment.
Another important aspect of
starting a business is finance as people can often underestimate the costs of
starting up. Do they have savings, are they using redundancy money, will they
be remortgaging, have they got an inheritance, or do they have an investor?
They might want to start selling clothes online, for example, and think that
importing from overseas is always a cheaper option. However, we make them aware
that they need to consider import VAT, customs duty, insurance, and all the
other costs which need to be factored in.
If they’re setting up a
shop, they need to realise that if they want to play music, even very quietly
in the background, that they need a licence for that. Are they aware that there
are fees involved in taking card payments and renting chip and pin machines?
And what about all the fixtures and fittings? At this stage people often
realise that there is more involved than they first
anticipated.
Protect
yourself
We also encourage people to
consider protecting any relevant forms of intellectual property such as
trademarks, patents and design rights. We advise them to draw up terms of
business to protect both their clients and themselves from any potential
disputes. A tradesperson, for example, might be focused on getting started, but
fail to consider customer payment terms and customer rights to
cancel.
The Business Support Helpline
can help people assess the viability of their idea, ensuring the potential
businessman or woman is well informed and has the tools to progress in whatever
direction they choose. There is so much advice and support out there we can
give to people, it all depends on the caller’s specific circumstances. We
can advise on all areas of business planning, understanding business legal
structures, local and national resources (such as mentoring schemes and
workshops), potential avenues of finance, any relevant regulations and tax. We
can’t tell people how viable their business is, we just talk them through
everything they need to consider, to make sure they’re as informed and
prepared as they can be!
This week the government is
focusing on how to Get Britain Working, and today is focusing on how people can
start their own business. Join in the conversation on Twitter using
#GetBritainWorking.