The first step to starting a business is always the hardest. Making that commitment to yourself and moving forwards can give you a sense of freedom and purpose you might not get in traditional employment. But where do you turn now, and what should you do next?
Helen Wardropper is a business adviser at the North East BIC. She’s worked with hundreds of businesses at all stages of growth and shares her top five things to consider when you’re just starting out.
When people start their own business, they always have one thing in common and there’s only one way to describe it. Excitement. This comes across in different ways, of course, but there’s always a sense of excited anticipation as if they’re standing on the edge of something brilliant.
This passion, and investment in the future, is by far the best place to start. You don’t always even need a firm business idea (we can help you with that), but wanting to make the change and committing to the process is the most important first step to take. After that, there are a few key things to really consider.
Understand your product and who wants to buy it
You might feel like you know your product or service inside out and have a really clear idea of what makes it special, but being able to talk confidently about how it will benefit your customers is really important.
Spend some time thinking about what problem your product or service will solve. Is there anything else in the marketplace that also solves this problem, why is your offer better? How will it make things easier for your customer, is there a unique appeal to your product, what makes it stand out? Is your service easy to access, and is there anything you could improve so customers can more easily use it?
Looking at your product from every angle is critical. But understanding who wants to buy it and why is also important. What does your customer look like, how old are they, do they have specific needs or asks? For instance if you’re going to sell a gadget aimed at school age children or teenagers, you not only need to consider their needs, but those of the people making the purchasing decision – their grown ups!
Market Research
Understanding the wider market is closely linked to really knowing what you’re selling. With the continued growth of online shopping and service provision, the marketplace is bigger than ever, so you need to think about this in relation to how you’re going to sell your product or service your customer.
If you’re providing a service where people in the local area commission or book you, then focus on who else is operating in that area. Do they compliment your offer and could there be a potential partnership you could explore. Or is there a lot of competition and do you need to consider your unique selling point more clearly, or even the location of your business?
If your business operates online, you might have to broaden the scope of your market research to consider national and even global brands or trends. While the competition may cross continents, the scale of the opportunity for your business could also be significant with potential customers across the globe.
Money
One of the biggest concerns for business start-ups is money and how much is needed to be operational. The truth is, depending on your business, it may not be a lot or even anything at all. If you’re operating as a consultant and already have access to a computer and phone, then you’ve got everything you need to make a start.
Of course, there are some businesses where start-up equipment and costs are more complicated, but there are plenty of opportunities to secure initial funding. You can use your savings as a personal investment into your business, access a start-up loan or apply for a grant to help get your business off the ground.
My biggest advice is to be open minded, seek expert advice from business support advisers like those at the BIC, and be realistic about what financial backing you really need to start trading.
Map your future business path
A solid business plan is the foundation to success for all start-ups. But what puts most people off is the idea that a business plan needs to be long and complicated. This is the biggest misconception when starting a business. As important as your business plan is, it’s more important that it’s clear, evidenced and acts as a blueprint for where you want to take things.
You’ve already spent time considering your market, understanding your product and your customer and thinking about the money you might need to get things off the ground – so you’re already part way there.
Business plans can take many formats, they can be lean and visual. Whatever works for you, works. Speaking with an adviser will help you make sense of what’s going to be right for you, and more importantly will help you see where your business could be in future.
Ask for help!
Don’t be afraid to ask for help. In the North East there are a number of business support organisations all with expert advisers on hand to help you on your way. Exploring the support mechanisms in place is really important, it could be specialist digital support, help with accessing finance or general all-round business development help. Speaking to the team at the BIC can help you find the right partner for you. Our advisers have access to region-wide partners and connections and are happy to work with you to build a support plan that meets your business needs.
Finally, be open minded and flexible. Don’t go it alone, build on your contacts and use the BIC as your personal support.
Take your first step, and speak to one of our friendly team on: 0191 516 6111 or click here to request a call back here.
Enterprising Sunderland is the overarching title for this business support programme and is funded by the UK Shared Prosperity Fund. Delivered by a unique consortium of delivery partners in Sunderland working together to stimulate entrepreneurial ambition across the city.
