Business Start Up Guide

During this section of the Business Start Up course, Award Winning HSBC Entrepreneur Richard McMunn will provide you with a step by step guide to starting your business.

When starting your own business it is vital that, to ensure success, you follow a few basic rules. These rules will provide you with a firm footing for business sustainability and they will also allow you to progress forward at a speed that is commensurate to your own time, finances and abilities. Remember that you will learn many new skills as you progress along your entrepreneurial career. Learn as you go, be prepared to make mistakes and learn from them, but above all - believe in your own abilities. Persistence, determination and a desire for success are just as important as your idea.

The following Business Start Up Guide will provide you with a basic insight into the things that you might wish to consider when starting up your business, and more importantly, building it. Please note that this is only a guide and the business decisions that you make are your responsibility. I strongly recommend that register for my free business template. This can be done at the top of this page. Once you have received your template via e mail you can then start to fill in the missing boxes. This will ensure that you leave no stone unturned..

Remember - you may have some different ideas about how to progress your business. After all, being an entrepreneur is all about having the freedom to create your own ideas and watch them develop.

Ok, let's get started:

BUSINESS START UP GUIDE

STEP 1 - Creating An Idea.

What am I good at and what areas do I have experience in, or knowledge of?

What type of business do I want to develop?

Do I have a hobby that could be turned into a business?

Has there ever been a time when I have needed a particular service or product which no-one else provides?

What is my idea?

Is there any competition?

Have I considered attending a ‘start up’ course to learn the basics of running a business?

Contact your local Enterprise Agency for more details of courses available.

STEP 2 - Developing Your Business Idea.

Is there a market for my idea?

What is the target audience in terms of age and gender?

Where do I anticipate selling my business product or idea? E.g. Internet, shop, office etc.

Who could I get to help me develop my idea and can I trust them?

What resources will I need to develop my idea?

Will I need premises?

Is my product or idea seasonal?

Would market research help and if so how would I go about carrying it out?

Will I need to employ people?

Will I need to create a prototype in order to test the market? If yes, who will I get to create my product?

How will social trends affect my idea?

How will I finance the creation of a prototype?

STEP 3 - Financing My Business Idea.

How much will it cost me to develop my idea?

Do I have any money of my own to invest in the business?

How do I anticipate financing this venture?

Have I considered grants and support? Click here for more information.

Have I considered a business loan?

Have I considered business angels or venture capitalists?

Will any finance be required to obtain premises?

Have I considered a joint venture?

Can I provide security if required in order to obtain a loan?

Have I considered a loan from a friend or member of my family?

Have I considered any of the following?:

• The Prince’s Trust
• Shell Livewire
• National Federation of Enterprise Agencies

STEP 4 - How To Protect A Business Idea.

Have I considered copyrighting my idea? Click here for more information on copyright. You may also find this useful too.

Have I considered applying for a trademark for my brand, company name or logo? Click here for more information about trademarks.

Have I considered patenting my idea? Click here for more information about patents.

Who do I have to tell about my business idea? For example, to gain finance or to obtain help with my design etc.

Is this avoidable? Before you disclose your idea to anyone have you considered an NDA? (Non-disclosure agreement)

STEP 5 - Registering Your Business.

What type of business do I want to start up:

E.g. Sole trader, Partnership, Limited Liability Partnership or Limited Company.

Have I visited the Companies House website?

Have I completed the right forms and registered with the relevant governing bodies?

Have I contacted HM Revenue and Customs?

STEP 6 - Financial Management Considerations.

Do I need to employ a bookkeeper or will I do this myself?

Have I contacted my local office of the Inland Revenue and HM Revenue and Customs?

Who will keep a check on my finances and records?

Have I set up a business bank account?

Have I considered the tax implications for my business?

Who will keep a check on how much profit percentage I make and how much my turnover is? Remember – this is key to your business’ success.

Have I considered employing an accountant?

STEP 7 - Market Research.

Am I going carry out any effective market research?

If yes, how will I carry this out?

Who is my target audience?

What is their age group?

Where do they want to buy my product or service?

How much are they prepared to pay?

STEP 8 - Business Premises.

Do I need premises?

If yes, where do I want the premises to be located? E.g. Out of town, close to home, close to transport networks, in a busy town or city etc. Remember – the closer to a town or city you are, the more expensive it becomes.

How big do the premises need to be?

How much will my rent/business rates be?

Do the premises that I have chosen need any work/ refurbishments carried out? If so, how much will this cost?

Do the premises meet current Fire Regulations?

Will I have to carry out a Fire Risk Assessment?

Click here for more information about your responsibilities under the new Fire Regulations.
What about insurance? Have I considered this and obtained any quotes?

Are all members of staff aware of Health and Safety regulations and are they aware of the findings of the Fire Risk assessment?

Have I thought about how I am going to comply with the key Health and Safety laws that affect my business?

Visit the HSE website for more information.

STEP 9 - Your Business Plan.

Have I started my business plan?

If not, when do I intend starting it? Please note - for more information about creating a Business Plan and obtaining a template please click here.

Have I considered attending a free course through the Enterprise Agency or Business Link to help me create an effective business plan?

Will my business plan be a working document and how often will I review its content and check performance against it?

STEP 10 - Employing people.

Will I need to employ people? If so, what roles do I want them to perform?

Who will recruit the employees?

Where will I advertise vacancies?

Have considered insurance implications if I employ people?

Have I considered the Health and Safety implications for employing people?

How will I pay my staff?

How will I organise their leave and working conditions?

Who will I get to create any contracts of employment and job descriptions etc?

STEP 11 - Contingency Planning.

Do I have a contingency plan? Where is it kept?

Are procedures in place to deal with the results of that contingency plan?

How often will I review my contingency plan?

Are all key members of staff aware of the contingency plan?

STEP 12 - Managing Stock.

How low can my stock levels go before I need to reorder?

What is the turnaround time of my suppliers?

Are my suppliers reliable?

Have I been to see them face to face to introduce myself?

If my current suppliers let me down, who will I turn to at short notice?

STEP 13 - Improving the Business.

What are the current weak areas of my business? How do I know this?

What do I intend to do about those weaknesses?

What timeframe do I have to make these improvements?

Who will carry out the improvements?

At what date will I review these improvements?

STEP 14 - Business Awards.

Have I considered entering into any business awards?

- HSBC Start-Up Stars
- National Business Awards

Have I also searched for any local business awards?

If yes, what systems do have I have in place to improve on the weak areas of the business?

If I have entered into any business awards, have I taken the time to submit an effective and serious entry?
 

Richard McMunn | Founder and Managing Director | How2become Ltd

To move onto the next section of the Business Start Up Course, entitled 'E Commerce Business', please click here.