There is no doubt that the UK is becoming a nation of small business owners, thanks to the proliferation of technology and the encouragement of the British government. This has created a climate in which 5.4 million private sector businesses have bloomed since the start of 2015, with this number representing an increase of 146,000 from the previous years’ figures. An impressive 1.9 million small businsesses have launched since 2000 too, so there is ample opportunity for entrepreneurs with a desire to chase success.
3 Golden rules for New Business Start-ups
If you do decide to launch a business, it is important to follow a few golden rules (regardless of the prevailing economic climate). So here is our brief guide to starting a new business start-up: –
Keep costs down and Profits high
While this may sound obvious, it is amazing how many small business owners and new entrepreneurs completely overlook this rule. It is pivotal to the success of new business start-ups, however, particularly when you consider than nearly 50% of all venture fail during their first year. By minimising costs wherever possible you can optimise profitability, so long as you do not compromise on the quality of your products or services. As a starting point, look to reduce costs associated with non-strategic commercial elements such as logistics, while committing funds to influential aspects like marketing, sales and product development.
Take calculated risks that deliver a reward
When established entrepreneurs talk about risk, they often to specify the approach that start-up ventures should adopt. In actual fact, new entrepreneurs should only ever consider calculated risks which offer viable returns, whether this is in the form of financial or human capital. Taking out a long-term lease at the outset and investing in high value equipment should be avoided, for example, especially with temporary structures available on rolling contracts and companies such as The Handling Equipment Shop offering low-cost hardware to firms. These represent calculated and manageable risks, while they also enable start-up firms to operate with greater flexibility over time.
Create a unique selling point and a company culture
In truth, these elements should serve as the inspiration for your business and the overarching brand that encompasses it. The most important aspect is the creation of a unique selling point, whether this applies to a product, range or service. This creates a reason for customers to partner with your brand, while it also helps to underpin a business philosophy and culture. This in turn can help with future product developments and the recruitment of talent, as it creates brand values that customers and employees can identify with.