The UK is a hotbed of entrepreneurial talent, and over recent years an increasing number of people have decided to start out on their own.
In 2017, there were 589,000 companies started in the UK and in the five years between 2012 and 2017, there were 3.5 million on the market. This buoyant entrepreneurial spirit is showing no signs of slowing down. However, starting a business does not guarantee success.
What about the failures?
The above statistics are certainly impressive, but it’s wise to also consider how many businesses don’t go the distance. In 2016, 328,000 small businesses folded, and this was up by 50,000 on 2015’s figures.
Figures also show that just less than half of all UK start-ups went out of business within three years of launch. Why are entrepreneurs struggling to get their start-up running? There are, of course, many reasons for failures, ranging from where it’s located to the sector it’s within.
At Turner Little, we work with start-ups across many sectors, and can advise on everything from copyright and IP to finances and offshore banking. We’ve come up with some steps that apply to most start-ups and can help them stay in business and grow to success.
Outsource where possible
For many entrepreneurs, one of the most attractive features of launching a start-up is the independence it brings. It can often be liberating to move from working for someone else to being your own boss.
However, if this leads to excessive control over every aspect of the way the business operates, this can be problematic. There are various parts that must work cohesively for start-up success, from developers creating a product to the sales and marketing functions.
Founders of start-ups often try to exert control over everything and are reluctant to hand functions to external parties. However, there are definite benefits in doing so. Using appropriate agencies can reduce the resources used and time taken to complete projects and deliver in specific areas that are almost impossible for start-ups to develop in-house.
By investing externally, the founder retains ultimate control. A ‘demand-driven’ model means that if a service is not working, then the entrepreneur can drop it without wasting too much money.
Stick to regular and reachable milestones
For enthusiastic entrepreneurs, it’s tempting to go all out and set high targets. Accelerating growth unnecessarily will increase the resources used before a turnover has been established. For obvious reasons, this isn’t sustainable and taking this approach can mean burning out before success can be achieved.
Setting achievable milestones means start-ups are more flexible and adaptable to changes in circumstance. As most business decisions are based on educated hypotheses, entrepreneurs must know when to pivot and adapt their plan accordingly. Regular, smaller milestones allow founders to keep on top of their original assumptions and minimise the wasted costs that might be incurred if their original hypothesis was wrong.
Long-term objectives must also be in the roadmap, but they should be broken down into regular milestones. Think small steps to make sure you have a solid foundation rather than over-committing to something that may not pan out.
Understand the latest trends
Launching a business is hugely demanding. Keeping it going day-to-day takes time, energy and money. It’s unlikely that you’ll be working traditional office hours, and many entrepreneurs spend every spare moment working on their start-up.
This generally means there’s little time to examine and research the constantly shifting market trends, which could significantly affect how a business should work. Consumer and market demands are always changing, and start-ups must be flexible in their approach to long-term growth.
Regularly conducting market research is vital to understand target audiences, and this should go along with regular analysis of competitors and research into new tech.
What about Brexit?
The UK is an exciting centre of innovation and is hosting many start-ups that are already disrupting different industries. As we head towards Brexit, it’s almost impossible to predict how the entrepreneurial potential will be affected. Under these circumstances, it’s important that start-ups are equipped to deal with the initial challenges they will inevitably face in their first few years. This will lead to a large community of diverse businesses that are well on the way to reaching their full potential.
About Turner Little
Founded in 1998 in Yorkshire, UK, Turner Little is a specialist UK and offshore company formation, banking and corporate services provider. Our services include company formation, UK and offshore banking, asset protection, credit correction/repair, trademarking and trusts. Other services include Internet services, mail forwarding, wills and probate. Turner Little’s vision is to offer the best possible service, together with market leading products.
