Starting up your own businesses can be a daunting yet exciting venture. To make sure things get off to the best possible start, there are a number of factors you need to consider. Here’s our guide of 5 things to consider when you start a new business:
Funding
One of the first hurdles of starting up your own business is getting it off the ground by funding the project. Using your own funds for the business is the ideal situation, however this option isn’t available for everyone. Another common way of acquiring funds to start up your business is through a bank loan or personal loan from family or friends. A personal loan would be a better option because this leaves you less likely to accrue any debt and, depending on the agreed terms, less likely to pay interest. It also means you’re only liable to your family member. A bank loan will require you to prepare a solid business plan, detailing forecasts of how you see your business growing. It can be a great option for those who don’t have their own funding. If neither are applicable, then consider investors such as business angels who are more likely to be interested in a new and disruptive business for the market.
Location
Choosing the perfect location for your business can be crucial when it comes to the success of your company. You’ll need to consider a range of factors including:
- Competitors location
- Where is your target market?
- The cost of your preferred area
- Growth projection
Your preferred location may be in a city centre, but the rent could be too high and the space available too small. Similarly, you may outgrow your premises if your business expands quickly, you’ll need to make sure there is space available for growth should it come to this.
Market/Demand
Are you entering a fast moving market focused on trends? Or a sustainable market with stable growth? Analysing the type of market you will be operating in can change the way in which you run your business. This can, in turn, determine whether you become a solely online business, or a business with some physical premises. For example, retail companies starting a new business are increasingly likely to be based online, keeping costs down by only owning warehouses as opposed to stores.
Competitors
One of the main things to consider when starting a new business is your competitors. From thoroughly analysing your competitors you can gage what they have done well, and also learn from any mistakes that may have set them back. Learning how your competitors operate and figuring out how you can do it better is a key step in starting a successful business.
Laws and Regulations
You will need to have a full understanding of the rules and regulations in place for your chosen sector. For example, factories have a strict set of rules to abide by in terms of health and safety – especially regarding noise and air pollution. If you’re starting up a retail company with the prospect of having a team of employees, drafting your own code of conduct in compliance with current laws and regulations is paramount. There are different laws in place for each industry sector, so you will need to research which will apply to your business.
Here at Airmatic Ltd, we supply ways to keep workplace safety at its peak at all times, please don’t hesitate to contact us for more information.