Member Article

How to start a business - top tips from Sage UK

This week is Global Entrepreneurship Week. A week dedicated to celebrating and inspiring people thinking about starting a business and arm budding entrepreneurs with the skills and practical advice they need to turn their idea into a reality. Business software and services provider Sage UK works with over 830,000 firms in the UK. The Head of Sage One UK&I, Simon Hodgkins has put together 10 things you need to know about starting a business to encourage potential start-ups.

1 Loads of people do it…

Each year, more than 500,000 people in the UK start a business. Some want to earn more money, others want to be their own boss or dislike their current job. Some seek greater flexibility or a more favourable work-life balance. Many people have no alternative, perhaps after being made redundant.

2 It could be the best thing you’ll ever do…

Although you’ll face many challenges and things might not work out, many new businesses survive beyond their first two years (when most fail). Being your own boss could give you more money and a better life. You can gain greater job satisfaction or a better work life balance. There will be hard days, sure, but opting to do your own thing could be one of the best decisions you ever make.

3 Starting a business is exciting and enjoyable…

Coming up with an idea and developing it into a successful business is hugely rewarding. If you haven’t done it before, starting a business can be a fantastic journey on which you pick up lots of useful knowledge, as well as doing new things and meeting new people. You might even uncover skills you didn’t know you had.

4 It might not be right for you…

Not everyone has what it takes to start and run a successful business. You’ll need passion, enthusiasm, ambition, self-confidence and resilience. If you’re disorganised and ill disciplined, your business will suffer. Running your own business will probably mean having to work harder and longer, especially early on. And you might have to go without weekends off, holidays, sick pay and even wages. Although you might be your own boss, sometimes it might not feel like it. Customers can be very demanding.

5 You need a great business idea

You might spot a gap in the market that isn’t currently being served or your inspiration might come from a desire to solve a problem that affects you or others. If you come up with a great idea for a new business you’ll greatly increase your chances of success. Even if your idea isn’t particularly unique, ideas can help you to stand out from the crowd.

6 Registering a business is simple…

To become a sole trader (ie ‘self-employed’) call the HMRC Helpline for the Newly Self-Employed on 0845 915 4515 or register online. It’s quick and there’s no charge. For more information visit the HMRC website. Setting up a limited company is simple, too, although it takes longer, involves a fee and you might need help. Visit the Companies House website for more information.

7 You must be fully committed…

If not, you’ll struggle to make your business as successful as it could be or your business could even fail. You won’t be able to let customers down or just walk away when things get tough. If you don’t put a lot of effort in, don’t expect it to be successful.

8 You’ll probably have to fund it yourself…

Most people use their own savings to launch their own business, while others borrow from family members. You could stay working for someone else and start a business as a part-time venture until it becomes established. Don’t expect to get financial help from your bank or a grant or loan from a public sector organisation.

9 You can access free information and support…

There are many websites that offer free advice and resources to would-be entrepreneurs, including Business Link, Start Up Donut, Smarta and Startups.co.uk. Your local enterprise agency or bank might also be able to provide information. Also get tips from others who have successfully started their own business — often the best way to learn about starting up is from those who’ve done it.

10 Starting a business involves risk…

Even if you work hard, are totally committed, have a great business idea and have the right qualities and outlook, your business could still fail. Otherwise, it could take time before your business is profitable. However, many new businesses do succeed — and yours could be one of them. If you come up with a good idea, test it properly, know your market, and address each start-up challenge properly and in sequence, work hard and remain enthusiastic, soon you could find yourself in charge of a highly profitable business.

For more tips and advice, see Sage’s guide ‘How to start your own business’ at www.sage.co.uk.

This was posted in Bdaily's Members' News section by Sage UK .