MILLIONS of people dream of starting their own business and building it up into a success story.
Not everyone turns that dream into a reality – but if you know where to start, setting up a new business could be easier than you think.
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There are over four and a half million self-employed people in the UK, from freelancers and individual contractors all the way through to people who run large and successful companies.
And according to research carried out by Enterprise Nation, around a third of all adults in the UK are considering starting a business this year.
Among adults aged 18 to 24 half say they want to run a start-up.
At the height of the pandemic, a record number of start-ups registered at Companies House.
Some 800,000 people set up a business between April 2020 and April 2021 as the UK was in and out of full lockdowns.
Millions of people were put on furlough and some of them took matters into their own hands by turning a simple side-hustle or hobby into a money-making success story.
This year company registrations have already hit half a million.
If they can do it, so can you. And to help you get started we’ve pulled together everything you need to know to start your own business from scratch.
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Getting started
There are dozens of free resources for anyone who wants to start their own business.
You can find training and courses online from sites such as Meta Blueprint, which teaches you all about marketing through Facebook and Instagram for free.
Grow with Google has thousands of free training workshops, official certificates and courses to help you learn all the skills you need to run a business.
Business networks such as Enterprise Nation, the Association of Independent Professionals and the Self Employed, the Federation of Small Businesses are great places to find information and tips online.
And there are are loads of free business mentoring schemes from company-funded programmes such as the NatWest Accelerator and Barclays Eagle Labs.
The British Library has a range of start-up advice and workshops, many of them free, including a two-day course for aspiring entrepreneurs and business owners called Kickstart Your Business.
You can attend for free at the British Library in London or at any Business and IP Centre.
You can find your nearest by checking on the British Library website.
The service also lets anyone with a clear business idea set up one-to-ones with high-flying business experts who can offer you helpful pointers.
Writing a business plan
Everyone looking to start a business should write a business plan to help you get your idea off the ground.
According to the British Library’s Business and IP Centre, it’s the vital component for any business.
“It provides potential lenders and investors with a roadmap of how your business will operate and how you will go about achieving your goals,” it states.
Every business is different and as a result there is no set format as to what your plan should contain, however they suggest covering these steps.
- Executive summary
- Description and background of the business opportunity, products and services
- Market, competitors and sales strategy
- Operations plan
- Management team and personnel
- Financial forecasts
What are you selling and who’s your customer?
This sounds obvious, but it’s easy to try to be all things to all people.
That rarely works. Stick to one idea to start with.
Who it’s for is a really important thing to get clear in your mind.
You need to know who wants to buy what you’re selling.
Someone prepared to spend £1,000 on a diamond necklace isn’t necessarily the right customer if you’re selling craft friendship bracelets.
If you want to build websites for other companies, what kind of clients could you do a good job for?
A global company isn’t likely to choose a small start-up but another business just starting out might.
Once you know who your customer is, you can develop a clear plan for the best way to get your business, products or services in front of them.
Seven steps to a successful start-up
Successful entrepreneur and CBE Emma Jones started Enterprise Nation in 2005 to support the growing number of people starting businesses.
Today the small business support platform and membership community helps 800,000 firms a year.
The Sun asked her to share her top tips for would-be business owners.
And you don’t have to go all in straight away either.
Emma says: “Around 45% of all businesses are now started as a side-hustle, where people are holding down full or part-time employment and working on the business in the evenings and at weekends.
“It means you can test the idea first without having to take a salary in the early stages and invest profits back into the business.
“Don’t give up your day job – at least not straight away. ”
Building a business can be hard work too – but can be worth it.
“Running your own business is so rewarding but it takes a lot of hard work and effort – but it’s brilliant to see the fruits of you labour come to fruition,” Emma says.
“But enjoy it! There’s nothing like the buzz you get from hitting targets and making sales.”
Test your idea
The first thing to do is make sure you do your research properly. For example, if it’s a food product, serve it up to family and friends and ask for honest feedback.
It’s always worth relentlessly researching competitors too.
How do they do things, and how can you do things better or more efficiently?
What will be your point of difference? In some cases, it might be worth considering investing in market research.
You need to establish that there is a demand for your product or service and what would people be prepared pay for it?
Then work out if that allows you to make enough profit to get to where you want to be.
Write a business plan and set a budget
Emma says: “Plan relentlessly. Set budgets and targets and have a clear vision.”
A good way to look at this is using the I’M OFF acronym:
- idea
- market
- operations
- financials
- friends
Friends include advisers or mentors and those who can help you along the way.
Emma says: “Working with an adviser is a way to avoid making some easy mistakes.
“Finding a mentor is a good way to set targets and keep yourself motivated and on track.
“Be open and willing to learn.”
Learn how – and start selling
It sounds obvious, but to make a business work, you need to be able to sell your product and that involves understanding the sales process.
There are some simple tips on our free StartUp UK hub which can show you how to make sales and much more.
There are other sales routes to market to explore at the same time.
If you have a product, consider digital marketplaces that will work for you like Amazon, eBay or Vinted and you can parcel-up and send via your local Post Office.
If you offer a service, consider platforms like UpWork, Fiverr or People per Hour.
You must remember to factor in costs charged, but it’s a fast way to get going without having to initially invest in your own digital ecommerce software.
Get paid
It sounds ridiculous, but having processes in place to make sure you can be paid on time is a sink or swim scenario, says Emma.
Having cash in the bank means you are less likely to have to take on unnecessary and expensive finance.
If you’re using marketplaces, the cash comes through automatically, but if not, get used to regularly invoicing, and chasing them up regularly.
Upskill
According to Enterprise Nation’s Small Business Tracker, the majority of entrepreneurs start their business because they want a better work/life balance or to use a skill or hobby to make extra money.
Most people need a little bit of help to increase their business skills like digital marketing or using social media.
Starting a business means wearing a number of hats.
You could call it being ‘chief cook and bottle washer’. Look for the support you need to start and grow.
Enterprise Nation runs a number of programmes to support people at every step of the way, including which helps with digital skills.
Network
Start networking to widen your contacts and increase awareness and to find advisers and mentors.
Businesses that take advice do better than those that don’t.
Joining local groups and attending events now that we can again, is a great way to learn and explore in the business community.
Enterprise Nation runs friendly local meet-ups called Local Leaders.
Find investment
Once you have started to build and grow, you might need to take on board investment to get you to the next level.
Look out for grants that you might be eligible for in your area.
Enterprise Nation Fund’s launched this month to support businesses with purpose.
Or have a look at Start Up Loans and specialist start-up funding schemes called EIS and SEIS investment.
You could consider crowdfunding.
If you’re looking for other routes, you look for investors via the Angel Investment Network.
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