There are 5.5 million small businesses and start-ups in the UK today, and the appetite for going it alone isn’t slowing down. But sometimes, that ‘Dragon’s Den’ lightbulb moment proves elusive.
Does that mean your entrepreneurial dreams should be over? We don’t think so. If you want to be your own boss but you’re worried you don’t have an epic enough idea, this doesn’t need to stand in your way. The team at Turner Little has come up with a guide on how to launch your start-up anyway…
Think about becoming a franchisee
Franchises offer a low-risk way to start your business, and they work on a proven model. It’s an ideal way for someone with the drive and determination, but not the idea to become successful.
You’ll trade under a brand name and image and sell established services and products. You may need to rent equipment, but you’ll have access to a defined marketing strategy, and most consumers will already know what to expect from your business. Examples of UK franchises include Subway, McDonalds, Bluebird Care and Driver Hire.
As the market is already established, you can start trading straight away with a ready- made consumer base. You’ll also get support from the franchisor, including training, payroll and keeping customers. Lenders and banks are generally favourable towards franchises over start-ups as they view them as longer-term survivors.
Go for a low-budget business
A big psychological barrier for many people with aspirations to run a company is the perceived cost, and the fear of going bust. However, not every start-up needs huge amounts of investment to get going. Some lower budget business ideas allow you to earn straight away, unlike some sectors that mean a long wait for a return on initial costs.
There’s no guarantee of success but starting up on a tiny budget could boost your confidence, help you learn and if you need to wind down, there’s no huge loss. We’ve got a few low-budget examples:
- eBay
Selling on eBay is an ideal ecommerce gateway. Many businesses, including well-established brands, sell on the platform. The process of becoming an eBay entrepreneur is cheaper and easier than you probably realise. Simply create an online profile, upload product images and tap into the global audience. More than 18 million people buy products on eBay in the UK, and there are 167 million users worldwide.
Basic packages start at around £25 per month, with most sellers buying in bulk and then selling on. Others choose to trade in simple bric-a-brac or high value antiques.
- Cleaning
Great for people who want a hands-on approach, starting up a cleaning company could see success without large initial investment. Start in the domestic or commercial market, although commercial will need more of an outlay for equipment. Do the work yourself, at least in the first few months and overheads will be low. In the domestic market, start-up outlays could be as little as creating some flyers and advertising online.
- Handyman
This can be specific or a mixed position, and the costs of starting out are low if you already own tools at home. You will need a form of transport, but it’s possible to hire a business van rather than buy one.
Go with tried and tested business models
If you can’t come up with a unique business idea, go the way of the tried and tested business model. Consider the following:
- Subscription and software-as-a-service (SaaS) – consumers rent online software rather than buying it outright. Popular with B2B such as HR and accountancy, the model allows users to pay a monthly fee to access the software they need.
- Traditional subscription: Works in the same was as SaaS but is for product-based businesses. See tails.com for an example.
- Traditional e-commerce: Customers buy products directly from your website. This may seem old-fashioned but it still works.
- Pay as you go: Users pay for your service as and when they want it. A good example is Hostmaker, which is for Airbnb owners to organise their viewings.
Research trends
Most unicorn start-ups (those valued $1 billion or more) didn’t start with a unique idea. They simply took an existing trend and did it better. It’s not necessary to be first to the market to be successful, but you can’t leave it too late or you’ll lose in a saturated market.
Anticipate trends and get in quick. Here are some ways you can do the market research:
- Scour industry-leading news from organisations like Nesta and Mintel.
- Read current affairs and think about whether you can come up with an alternative or improvement.
- Always keep your eye out and stay up to date.
Monetise your hobbies
In 2016, around 40% of entrepreneurs started a business based on their downtime interests. You could too. You’ll already have in-depth knowledge of the industry and what’s popular and you’ll enjoy the environment. An example would be setting up a pet-sitting business if you love dogs, or start up a cake-baking business if you love it in the kitchen.
You could also combine a start-up with your day job. If you’re not ready to make the leap into full-time business ownership, you could go freelance or part-time with your start-up.
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.
For more information, please contact us on 01904 783101.
