Every year, the number of UK-based small businesses grows. People start a business for many reasons. They may want to pursue a dream, work from home, or redundancy. This growth has been fueled by the growth of broadband Internet. While some of these businesses may need financial backing from venture capitalists, others will not. All will require a business plan.
Although you might not need it, it’s still a good idea to have one. It will serve as an aid memoir when you feel like everything is falling apart around you, or when things are moving so fast that it is difficult to get your feet on the ground.
No matter how skilled or enthusiastic you may be in the business that you want to start, you probably don’t know much about business. Your business plan will show the gaps in your knowledge when it is presented to an expert in business. They don’t know what you know about business if they don’t have it. Before they will consider investing in your idea, any bank, stock supplier, or venture capitalist that you approach for financial support or financing of your business will need to see your business plan.
What do you need to include in your business plan? How is it structured? You must show that you have done extensive research on the market and are familiar with the potential competition. You must present it well and pay attention to every detail. It should be professional and accurate, without spelling errors, using realistic assumptions and presenting credible cash flow projections. There are many web sites, companies, and associations that can help you if you find this overwhelming.
Remember that the more you plan your venture, the easier it is to solve any problems that might arise. Small businesses fail more often than they should every year. This is due to insufficient time spent prior to finalizing a financial and business plan.
Financial backing may be required for your venture. As you plan your dream, you will need to determine the financial backing you will require for stock, advertising, equipment, wages, and payroll for the first few months as you build customer base.
Insurance is important. Insurance is not just for big guys, as you might think. It’s for those who are running a business online, making sales, or cleaning windows. The law views you the same way as the Fords and IBMs of the world. In most cases, your personal and/or home insurance will be null.
Many companies offer small business insurance packages or can tailor-make a package for you. It doesn’t matter what you need, it won’t cost you a lot and can help boost your business standing. It takes just one lawsuit against you to make you lose your business and put an end to your dreams.
Product liability insurance and public liability insurance are the two mainstays of any small business insurance package. Public liability insurance is often required before you are allowed to work in or visit third-party premises. This covers you against bodily injury or death, as well as property damage or loss not in your possession or custody. You are covered for the supply of goods to another person if you cause injury or damage by your negligence. This includes all legal fees and costs, as well as damages and claimants costs.
You should be assured that nobody wants you unsuccessful when you start a business. There are many associations and companies that can help you. There are many organizations that can help you, some of which are free like the local chambers of commerce. They can give you a wealth information about employment laws and local companies that might be interested in your services. The Federation of Small Businesses has local groups that meet regularly to discuss issues and to hear presentations from service industry professionals. These groups are joined by local banks, venture capitalists, and other support agencies. All of them are there to assist their customers just as much as yours.
