Starting a business
Starting a business can be daunting. So, it is important to start with the right approach. Likewise, to gain advice on key points that are too often misunderstood. Ultimately, this approach gives you the best chance for success. In addition, it helps you avoid pitfalls.
Where to begin when starting a business
Certainly, the best start point is to make a business plan.
A business plan helps you to achieve the following:
· Firstly, clearly define your business idea.
· Secondly, detect potential challenges you might face.
· Thirdly, set out your business objectives and targets.
· Finally, understand how to measure your progress.
Starting a business – testing your idea
Many business ideas sound viable initially. Nevertheless, not all will survive. Depending on the sector, approximately 30-60% of start up businesses fail. Why? In short, the old adage about planning reflects a truism. It goes like this: ‘failing to plan is planning to fail’. In other words, put your business idea to the test of making a business plan for it. Consequently, this rigorous process will highlight potential areas for concern. Likewise, it also makes you consider how to overcome challenges.
To sum up: before even starting a business, identify what threats and opportunities may affect it. Certainly, this initial planning stage will save you potential headaches.
Starting a business and measuring success
Most importantly, you want your business to grow. Therefore, you need to be able to track your progress.
What you need to understand when starting a business
It’s crucial to understand the following three elements:
Firstly, profit and loss
Secondly, the balance sheet
Furthermore, the cash flow plan
In short, as part of your business plan, make a projected profit and loss, balance sheet and cash flow plan. Above all, these are fundamental when working out the financing of your business.
Most importantly, if these three terms are unfamiliar then seek out help.
Nicky, owner of Worthwhile Accountancy and her team can provide specific pointers. Therefore, please feel welcome to call for an initial chat (at no cost). Furthermore, if you’re struggling to write your business plan then see the further help section (below).
Further information For help starting a business, reach out to the Worthwhile Accountancy team who are happy to have an initial chat for no cost. Checkout our Services page for the range of help we offer. Likewise, they can provide pointers on all of the issues covered here. Call 07507 751400. Alternatively visit our website at https://www.worthwhileaccountancy.co.uk/
Further helpful Links
Firstly, the government offers advice for making a business plan. This includes providing template business plans
Secondly, The Prince’s Trust offers business plan tools.