Longing to start your own business? Got an idea but unsure where to start with the finances?
Take your plans from concept to reality - see our top tips for how to begin here in our latest blog.
When you’re setting up a new business, ideas are often discussed casually. Around the dinner table, over a drink – the plan on the back of a receipt is often quite an accurate anecdote!
Taking a concept from the ‘dream’ stage to a fully-functioning, financially stable business can seem overwhelming, even down-right impossible. The good news is, all you need is a pathway to follow. If you’ve got an idea, and passion to go with it, you can be on your way.
Of course, all businesses are unique, but we’ve laid out the basics below – including the most common errors or oversights we’ve come across.
In the majority of cases, here’s what you’ll need to cover
before you get going:
A business plan and financial forecasts should be your starting
point. Knowing the market allows you to cover everything you’ll need to present
to the banks to secure funding. This is where we would assist with financial
knowledge and forecasting advice. If you’re unsure where to start, accountants
and financial advisors can assist with business plans.
Getting in experts is key here. You should get the right
assistance in, with the knowledge as to how to go to market, this may include:
other entrepreneurs, ecommerce specialists, land agents and marketers. Seeking
external advice at this stage will pay dividends in the future, by helping to
avoid common errors and mitigate any potentially expensive mistakes. Going to
see other businesses who are doing similar things can also be extremely useful,
seeing how they are set-up, the infrastructure in place can provide
inspiration, not to mention build your network.
Next up, it is crucial to sort out the structure of the
business. Is it going to be a company limited liability? A partnership? Getting
this all set up, as well as the issuing of shares, etc is extremely important.
Particularly with rural businesses. Often business owners’ lives are embedded
in their business, many rural entrepreneurs work from home and with family. This
brings in the added dimension of future generations, and it’s not uncommon to
have four generations in the same business.
People’s needs, aspirations and ambitions must be agreed,
and need to correlate, if not, the business will not be successful. Disagreements
can get in the way, and it doesn’t work if any one shareholder is disgruntled.
Whilst it may seem unnecessary, bringing lawyers in to make sure there are
shareholders and partnership agreements, is vital. This ensures everyone has
clarity on the structure and trajectory of the business.
A strong business plan and structure lay down a solid foundation, upon which a prosperous business can be built. Although initially, you may be able to start trading without these in place, further down the line, the cracks will appear, and a lack of planning can come back to haunt you. Clear structures and planning will enable you to secure funding, attract investors and, ultimately, drive your new business forward towards a successful future.
If you’re looking to set up a business and would like some advice, please don’t hesitate to get in touch.
A strong business plan and structure lay down a solid foundation, upon which a prosperous business can be built”