It has been estimated by the think tank Centre of Entrepreneurs, that a record 600,000 new companies will be launched in 2015. Whilst this is a positive indicator about the state of the UK’s business environment, the harsh truth is that 50% of these businesses will fail within their first couple of years.
A shocking statistic, which emphasises just how much importance, needs to be placed on the planning and preparation of a business venture. What many people don’t realise is the amount of preparation that goes into organising a business before it even lifts off the ground.
The research that goes into the business is a pivotal part of the launch; customer demographics and competitors are extremely important – what are they doing that you can do better?
Consider your development and planning – set out your business plan, the clarity that comes with this is something that should always be at the forefront of your mind. Have you spotted potential problems? Equally, what are your goals for this business? And have you looked at the measurement of your progress throughout the development of the launce and the business?
Although setting up a business will be considered your baby, having a mentor to support and go to for guidance on anything surrounding the setting up of your business can ease the pressure of launching something so dear to you.
There are a myriad of companies that have helped thousands of businesses develop their brand identities and marketing materials, and a great example of an aid to reference back to whilst a business is still in the development stages is this Helloprint infographic. The checklist includes everything from to registering your business, as well as advice on what you need to consider before becoming operational and ways to promote your company before and after launch – the entirety of all the important aspects that comes with setting up a business.
Chairman of the Centre for Entrepreneurs, Luke Johnson said, “starting a business is easier, quicker and cheaper than ever thanks to new technology. Entrepreneurs have higher profiles than in the past and are seen as role models. Traditional jobs for life have largely disappeared, as have occupational pensions.”
Understanding what you found difficult when starting up and listening to other recommendations by today’s budding entrepreneurs can enable you to get your start up off the ground, and successfully at that.
So just how important are small businesses to the UK?
- In 2014, there were 5.2 million businesses in the UK, over 99% of which were small and medium enterprises.
- Small and medium enterprises employed 15.2 million people in the UK in 2014.
- The European Commission’s SME Performance Review estimates the Gross Value Added of European SME’s was €473 billion which equates to 49.8% of the UK economy.
These statistics clearly highlight exactly why developing a start up that could be beneficial to not only yourself, but the rest of the economy can just be the motivation that is needed for more individuals to go with their gut and move forward with their concepts.
By Tami Briesies, Zazzle Media