Turner Little recently reported that nearly half of UK adults want to start their own business, with 50% of this number saying they would utilise their own savings to become their own boss. If you have got a great idea for a business, you need to avoid making strategic mistakes to ensure you cultivate a successful venture. Turner Little explains what not to do when setting up your business.
Do not put in less than 100%
Speaking to Start-ups.co.uk Lee Biggins, the founder of jobsite CV Library says: “If you want your start-up to take off, it’s essential you believe in what you are offering. While it’s wise to be cautious, if you go into your venture half-heartedly, it’s likely to show and could jeopardise its success.” We would advise you to assess the risk associated with your business idea and decide what are willing to sacrifice, so you can go into your business with the commitment you need to make it flourish.
Do not be afraid to work hard
Call handling firm Penelope conducted a survey which showed that UK-based entrepreneurs work 63% longer than average workers. You need to be prepared to work hard and involve yourself in the day-to-day running of your firm. By handling everything from strategic thinking to pitching to top level customers, you will ensure you can guide your business through those difficult early days.
Do not do everything yourself
There is a difference between working hard and micro-managing. Learn when to delegate, as there will be some tasks which you do not have the experience to handle. You will want to keep hiring costs down, so be strategic when taking on new employees. Find new staff members who complement your weaknesses, so you can delegate effectively without stretching your firm’s budget too thin.
Do not hire too quickly
In the last point we advised you to hire strategically. Ensure you do not execute new hires before you have the finances in place to meet employee salary obligations. It is important to create a solid team for your company, but hire too quickly and you could end up with employees who are a bad fit for your emerging venture. Take your time to develop an intelligent hiring strategy, job experts such as Indeed can advise you on this matter, so you build a strong team.
Do not forget about expenditure
Once revenue starts racking up, it can be easy to forget about your regular monthly expenses. For instance in 2014, Yahoo Finance reported that 52% of UK small business owners had no idea how much they spend on utility bills. If you forget about expenses, they will cut into your profit margins, restricting your ability to support your company’s operations. Keep a tight eye on invoices and utilise effective UK banking services, Turner Little can advise you here, to maintain a healthy profit long-term.
Do not overspend on office space
It is a mistake to overspend on office space; it will not make you a more legitimate business. Biggins said on this matter, “It’s understandable to want a flashy and sophisticated office,” but these resources can be spent better elsewhere, so “use the money to ensure your start-up is really up and running, and spend on a fancy office later.” Instead, adopt flexible and remote working policies; not only will this keep costs down, it could help you attract top talent to your staff roster.
Do not launch at the wrong time
Timing is everything. Launch your venture before you are ready and you risk damaging your credibility in your chosen market. But if you launch your business idea too late, you could find yourself operating in a highly competitive market, reducing your chances of attracting your target consumers.
The key is to launch your venture at a pivotal moment for your industry. For instance, Biggins notes that CV Library launched just when the internet was taking off, so it came at the right time to corner the online jobs market. Launch your company at the right time and you will capitalise on emerging trends, allowing you to become a sector leader that consumers trust.
Turner Little
One of the biggest mistakes you can make when setting up your own company is adopting the wrong business model. By committing this error, you deny yourself the support necessary to suit your venture’s requirements, limiting growth, so it is essential you understand the differences between sole tradership and establishing a limited company. Turner Little provides the effective limited company formation services required to turn your business idea into a roaring success.
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.
