Whether you are starting a business for the first time or the 100th time there are a number of tasks that you should be doing to make sure it is successful. From validating your idea to making sure you can grow and actually make money. This guide will take you through the 10 most important tasks you must do to start your own business. Starting a business involves planning, making financial decisions and following the law.
Validate your idea and do market research
If you have an idea for your business the first thing you should do before anything else is validate it. Is there a real need for the business? Has it been done before, if not, why? Are other businesses doing the say thing? Is the industry too saturated? These are all very important things to look into before you actually start. You don’t want to start spending money and then realise what you are doing really isn’t viable. A survey by CBInsights found that 42% of startup businesses fail because there’s no market need for their services or products. This is by far the biggest reason why a business fails because they did not do their market research.
Market research helps you find customers for your business, as well as who your competitors are. Market research also allows you to get more information about consumer behaviour and economic trends. It’s very important to under who your customers are. Gather as much data as possible and create your “perfect customer” profile.
- Demand: Is there a desire for your product or service?
- Market size: How many people would be interested in your offering?
- Economic indicators: What are the income range and employment rate?
- Location: Where do your customers live and where can your business reach?
- Market saturation: How many similar options are already available to consumers?
- Pricing: What do potential customers pay for these alternatives?
A test that you can do is ask people if they would actually buy what you are selling. If you are selling a product then actually take payment as a pre-order, this is a true test if they would buy it or not!
Finances | Accountants for Small Business Kent
Most businesses failed within the first two years and the number of reasons why they fail is poor cash flow. Data from the BLS shows that approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. A survey by CBInsights that 29% failed because they ran out of cash and 18% failed because of pricing and cost issues.
An accountant is massively important when it comes to running your own business, they can help with saving money in almost every area of the business by increasing tax efficiency and improving cash flow. a good accountant provides you with the reliable financial information you need to make key decisions.
Having an accountant fees up the time that you spend on this area allowing you to focus on your business. An accountant can handle key functions such as bookkeeping and filing your company and HMRC returns on time. Get in touch with King and Taylor Accountants in Gravesend for the best prices and service in Kent.
Create a business plan
Have you have a solid idea of your business and you have done your market research? Then it’s time to establish exactly what your business will be doing, this is where the business plan comes in. You need to ask yourself a few important questions: What is the purpose of your business? Who are you selling to? What are your end goals? How will you finance your startup costs?
Make sure you don’t rush into things when you start your new business, a plan allows you to solidify exactly what you want your business to be. You need to find your ideal customer, what services you are going to provide and provide evidence of why there is a demand. Check out this post on how to write a business plan.
Accesses local business support in Kent
You might not realise it, but Kent is a great place for businesses, the county has tonnes of support when you know where to look! Kent County Council has a great resources page for start-up businesses where you can receive funding, grants, get business advice, business awards, find events and lots more. Click here to visit their page. The Kent chamber of commerce is a great place to start.
At King & Taylor Accountants, we are here to support local businesses in Kent as we have done for over 25 years. Get in touch today if you need any advice around accounting, tax and bookkeeping.