Thinking of starting a business?

Starting your own business is an exciting but nerve-wracking venture. You’ve decided you want to be your own boss. You have a great business idea. Now how do you get things off the ground?

Jenny Haley, Commercial Manager here at the Innovation Centre, recommends the following seven practical steps for a successful start.

1. First and foremost, do your homework

Undertake some thorough, basic research before you take the plunge. This will reduce stress and save time and money later on.

You should research:

• Your market: Who are your customers? What do they want and how can you deliver it? What’s the size of the market and its likely growth prospects?
• Your competitors: Who are they and what do they do well – and badly?
• Prices: What’s the most suitable price for your products or services? What do your competitors charge? What are your customers prepared to pay? Nobody will buy from you if you’re too expensive, but equally it can also be a mistake to be too cheap.
• Where can you sell your products and services? Where do people go to buy these today, and will this be the same in the future?
• What aspects of your product or service will customers value the most and be most profitable for you?

Ultimately, given what you’ve learnt from your research, consider again whether your proposed business is viable. Can you realistically deliver the goods, and is there enough demand to earn you a profit? If the answer is yes, then great. If you have doubts, you may be wise to explore different avenues or refine your ideas.

For further guidance on how to research a business idea, look at Start Up Donut: Market research for start ups.

The British Library also has useful information on industry sectors and a host of other resources including free workshops.

2. Write your business plan

Having completed your research, write a clear business plan. This needn’t be a huge document, but the process of writing it will crystallise your ideas and the plan will be a valuable tool to keep you on track.

Drawing on your research, your business plan should outline:

• Your goals – in clear, measurable terms
• The product or service you intend to provide
• Your target market
• Your marketing ideas
• Financial projections
• The resources you need
• The risks you face and how you can manage them
• Information on you and any staff you need to hire

For further advice on how to write an effective business plan, along with examples, see Bplans.co.uk.

Business Link has more about how to devise and manage a budget.

3. Take advantage of all the support you can

Speak to friends and contacts who’ve set up their own businesses. Ask them what they found difficult and what strategies work for them. You may be surprised by how happy people are to lend their support.

Entrepreneurs in Hastings and St Leonards can also get free help on all aspects of starting and running a business from:

• 1066 Enterprise: start-up support, mentoring and local training events
• Business Link: online advice for businesses from start-ups through to established companies

4. Find the right place to work

Keep your premises as small as you need in the early days and consider whether you even need an office of your own. The less you spend on space, the more you will have to invest in getting your business off the ground.

For example, you could use virtual office services in order to present a professional image while working from home. Or you could consider shared business space, with a view to upgrading to a small office or industrial unit when your business has grown accordingly.

If you do take on an office, try to avoid tying yourself into a long term contract. Let’s face it, no-one can predict for sure the way a new business will develop. Being flexible gives you a much better chance of success.

Consider what is included in the price: is it just an office – with a number of other associated bills you will need to factor in – or can you find all-inclusive prices? At the Innovation Centre we offer a range of premises for small businesses of varying sizes, at simple, all-inclusive prices.

5. Find the best suppliers

The better quality your suppliers, the better quality product or service you will be able to provide your customers.

Ask people you trust whom they would recommend: most people will happily let you know which suppliers they use. If you have to use a supplier you don’t know, ask for references – and contact these directly for an honest appraisal.

For any significant costs, always get more than one quote in order to compare prices and don’t be afraid to negotiate. Remember: they want your business.

6. Network, network, network

Don’t underestimate the power of networking. It’s not just about getting sales, although it can be a powerful way of building a customer base. It’s also about knowing that you’re not alone and getting advice and encouragement from others in the same situation.

Networking groups in Hastings & St Leonards include:

• Hastings Area Chamber of Commerce
• Federation of Small Businesses
• Hastings Business Lunch Club – contact Dave Walters (07970 165102)
• Women in Business Lunch Club – contact Gemma Steer (01424 720222)
• Local BNI groups:
  • Hastings
  • Battle
  • Bexhill

7. Don’t let anyone put you off

Ultimately, if you’ve done your research, written your business plan and are keen to breathe life into your new business – then go for it. Don’t let anyone deter you.

Make no mistake: starting your own business always entails risks and challenges. But it’s exciting and rewarding at the same time.

And while it’s important to do your homework, devise your strategy, analyse the risks and manage your costs, it’s also vital to maintain all the passion, drive and enthusiasm that mark out successful entrepreneurs.

Who knows where your business idea will lead: Microsoft and Marks and Spencer were once start-up companies too.

Good luck!