Are you lacking any business experience whatsoever – but you are really interested in how you might set up a new business?
This Blog is written to give you some useful pointers of how you can potentially create a profitable business without the need for heavy investment or the creation of time consuming and complicated business plans. However, before we get into the detail of where you might start your business planning and creation process, let’s take a look at the trends and statistics associated with the creation of new businesses in the UK.
The impact of the International Financial Crisis of 2008 triggered a changing landscape and with this came a new appetite for people to take control of their careers and their financial future. Between the years 2009 – 2013, there were many job cuts and desperately worrying reports about Pension Fund failures along with pending pay-out shortfalls.
As evidence to support this new appetite for entrepreneurs, according to the superb website, Start Up Britain, in the year 2015, over six hundred thousand (608,000) businesses were formed. The trends should see a further increase on this number by the end of 2016. This has followed on a similar growth trend that stretches back to 2011. This month alone (November 2016) saw over 30,000 newly formed businesses.
However, setting up and operating a profitable and worthwhile new business is not always easy. According to a study from the Office of National Statistics, 45% of these start up businesses last beyond 5 years, with a majority of 55% failing to survive until their fifth birthday.
So, what are the reasons for such a high percentage of business failure? According to various research sources, there are several reasons and below we take a quick look at just four of the most common ones.
- A lack of cash?
Well, there are literally dozens of research articles that list the purported reasons why businesses fail. The number one reason in most of the easily searchable Internet surveys is a lack of sufficient cashflow. This might be as a result of: a) insufficient cash to operate the business or b) inadequate resources to keep product supplies coming in.
- No business plan
Second on the popular list of reasons behind a business failure is the lack of a sensible business plan.
It is never smart to operate any business without a clearly laid out written plan. This does not need to be a complicated plan, but most progressive and profitable businesses have a simple plan at the foundation of their operation.
The business that I coach people to start up and operate has some very simple tools to ensure there is an appropriate business plan in place. If you are looking for some guidance on generic business planning, The Prince’s Trust website has some useful tools for those people wanting to create a more bespoke, traditional type of business. You can find some useful Business Plan Templates on their website by clicking here.
- Failure to clarify the benefits of your business
One of the other key reasons for business failure can be an inability to provide quality products that resonate with customers and prospective customers. Often, new companies fail to create products that have sufficient appeal and / or market demand.
- Lack of core marketing knowledge & tools
Many businesses succeed in sourcing or creating quality products but then cannot find a sustained market for their products. This can include a lack of marketing ability and knowledge of the tools that can help you to market your business.
Questions to give you a strong business formula
Now let’s get more positive and take a look at the ingredients that can fuel better prospects for a profitable new business. Here are some of the questions I would encourage you to look at.
These may seem like incredibly simple questions but there is a lot more power and benefit in these questions than what seems immediately obvious. Please grab a piece of paper and then spend some time looking to answer the questions.
- Which industry type and sector should you choose to set up your new business within & why?
- What products can you sell and what evidences there to suggest these products be appealing in the marketplace?
- How might your products / service be special and different to some of the more readily available products?
- Where can you source high quality products from?
- Are the proposed products properly manufactured and safe to consume?
- Are the products / services tested and safe for human use?
- What should you charge for the products and how do you decide this?
- How much stock do you need to buy – if any?
- You are not a salesperson; how can you market and sell the products?
- How can you legally promote your products / services on the Internet & Social Media?
- How much money do you need to sensibly find to set up your business?
- What other business services do you need in place – accounts, insurance etc.
As you consider these simple questions, you may immediately get a feel for precisely what you want to do and how you might be able progress. However, it may also be that certain questions may leave you a little concerned at how you can progress against such considerations.
If you remain keen on the idea of starting a new business but you need some initial support, please send me an email at a mutually convenient time. My email address is firstname.lastname@example.org I can share the business planning method that I use with my clients and why it is worthy of your attention and consideration.
I will be able to quickly walk you through each of the questions detailed in points A-L above. This will most probably take place via a short Skype session. During this conversation, we will be able to establish your appetite for business and what stage you are at within the business planning process. I wish you well in your new business endeavours.
About the Author
Julianna Beavan is one of the world’s most respected Business Coaches and Network Marketers. With a proven track record in helping people to take better control of their financial and lifestyle circumstances, via exciting options that exist in the health & wellness sector. Julianna is often commended for her inspiring coaching style – never neglecting the important human aspects of being warm, supportive and humble towards all those who approach her with a serious business appetite and the discipline to succeed.
If you would like a totally free and no strings attached personal consultation with Julianna, please make direct contact via the link below. Julianna guarantees you will have an opportunity to consider working directly and personally with her.
Operating with transparency, good personal / business ethics and integrity is very important to me.
As a Global Business Coach, I operate beneath the umbrella of Forever Living Products and I recommend their business formula as a vehicle for the pursuit of personal, business and business success. Virtually every business in the UK is governed by some form of UK Legislation. As far as the UK Legislation is concerned, what Forever Living Products does comes under what is known as The Trading Schemes Act.
When you consider any business opportunity, it is very important that you examine the details set out in the terms & conditions provided by that business and you consider the amount of time and effort you will need to put in to achieve the success you desire.
As I am effectively a promoter and a participant in a trading scheme, I am always careful to ensure that my clients understand that the benefits that myself and many others have enjoyed may not necessarily be achievable by everyone. It will take hard work, discipline and persistence to reap the benefits.
It is illegal for a promoter or a participant in a trading scheme to persuade anyone to make a payment by promising benefits by joining a scheme. Do not be misled by claims that high earnings are easily achieved.
In adhering to the UK Trading Schemes Legislation, it is my responsibility to point the detail written on this page to any interested person.