Planning to set up your new business
There are lots of different ways to set up a new business, and lots of different models. They all have something in common, however, and that's planning. At the bottom of the page you will find lots of practical planning tools and guides to download that will enable you plan your business start-up successfully.
Making sure your new business survives!
Business survival through the first three years is critical so planning for success right from the beginning is key. This includes all of the financial and legal aspects (cash flow management being the key performance area), as well as defining products and services that customers want, need or are willing to pay for in sufficient numbers.
According to Michael Ames in his book ‘Small Business Management and *Gustave Berle ‘The Do It Yourself’ Business Book the main reasons for business failure are as follows:
- Lack of experience
- Insufficient capital
- Poor location
- Poor inventory management (stock control)
- Over-investment in fixed assets
- Poor credit arrangements
- Personal use of business funds
- Unexpected growth
- Competition*
- Low sales*
The message is clear - do your homework, put together a decent business plan and enter the marketplace hopefully but prudently. Expect to work hard! A good plan is usually necessary to raise capital, and the learning process from creating your plan will definitely pay dividends.
How to start your own business
There are three main areas to consider when it comes looking at which route to follow. Check out our recommendations for useful books on this topic below or buy the New Life Handbook which features lots of help and tips for budding entrepreneurs. You may also find the training section offers some useful ideas and resources on acquiring the new skills you may need.
1. Setting up a business from scratch using your own idea
- This is often seen to be the most difficult strategy, however, DTi research shows that some three-quarters of firms are started from scratch. Put real grit and effort into your planning to make sure that you succeed.
- If you fancy opening a shop but you've never worked in one, if you want to run a pub but all you've done is drink in one, it means that you need to work much, much smarter to make it successful - or you'll be job hunting again quicker than can say 'bankruptcy'.
- Start by doing your homework and check out the help on the sites listed in the directory such as NatWest Bank, Clearly Business (Barclays),and Business Link.
- You can also download some of our practical templates and guides at the bottom of the page. You'll find plenty of inspiration and help just a few clicks away.
2. Buying an existing business to run
- You should do some research on the sites listed below to start to research your options - Daltons, Business Link and Startinbusiness.
- Remember that you must consult with an experienced Accountant or Legal Professional before you buy a business.
- Make sure you see a properly audited set of accounts - many people put a business up for sale and they can't provide a verifiable set of accounts.
- A transferred business has a very good chance of survival if you go about it sensibly.
- Download the start-up checklist at the bottom of the page to create a log of your research activities, contacts and build a launch project plan.
3. Buying a franchise - the rights to an existing business formula and branding
- Go to the buying & running a franchise page for more detailed information and resources.
I've got an idea - now what?
Start up your new business - step by step
Let's not oversimplify this, but it really isn't rocket science. Write down your plans, make sure that they make sense, get people whose opinion you trust to stress test them for you, write down the list of tasks you need to complete, and then just get on with doing them. Just make sure you do plan it first - less haste more speed or so they say!
Step 1: Create your business plan:the what, how, when, where and how much? Is there a market for your business, and how will you reach it profitably? Download the example at the bottom of the page.
Step 2: Work out your financials fully - raising business capital, cash flow management, break evens, pricing etc. If you aren't familiar with financial terms you can download a jargonbuster at the bottom of this page. Take at look at the page on raising business capital too.
Step 3: Find premises to operate from if your business requires it. Unless you're going into retail you may be able to use a serviced office, incubation unit or a temporary address to start off with. Never do any work to a building until you have had it surveyed and signed the lease or freehold documentation.
Step 4: Sort out the legalities. Will you opt to become a sole trader, partnership or a limited company? Your Accountant can advise you on the best model. Will you need to register for VAT, do you need to sort out Trade marks or patents, Data Protection Registration, contracts etc? Download the guide at the bottom of the page to help you to consider your options.
Step 5: Sort out the practicalities - business cards, stationery, staff, telephones, computers, insurance, stock etc. Download the checklist template at the bottom of the page so that you don't forget anything and plan your time effectively.
Step 6: Get going! Tell your customers that you are open for business. Sort out your marketing, selling, networking, trading, PR - check out the page on marketing and PR for your new business.
Step 7: Keep going! Just launching your business isn't enough. You may be tired and exhausted and hopefully happy but don't let up - the work has only just started, you have to keep customers coming and paying willing for what you have to offer. Download the checklist at the bottom of the page and use the yearly trading planner section to help you plan your activity in a coherent manner.
Remember it could take much longer to pull all the strands together than you think - anything up to six months. So, don't hang about once you've set your mind on your goals.
Useful Resources
To find our top business reads and book recommendations click here
Let's not oversimplify this, but it really isn't rocket science. Write down your plans, make sure that they make sense, get people whose opinion you trust to stress test them for you, write down the list of tasks you need to complete, and then just get on with doing them. Just make sure you do plan it first - less haste more speed or so they say!
Step 1: Create your business plan:the what, how, when, where and how much? Is there a market for your business, and how will you reach it profitably? Download the example at the bottom of the page.
Step 2: Work out your financials fully - raising business capital, cash flow management, break evens, pricing etc. If you aren't familiar with financial terms you can download a jargonbuster at the bottom of this page. Take at look at the page on raising business capital too.
Step 3: Find premises to operate from if your business requires it. Unless you're going into retail you may be able to use a serviced office, incubation unit or a temporary address to start off with. Never do any work to a building until you have had it surveyed and signed the lease or freehold documentation.
Step 4: Sort out the legalities. Will you opt to become a sole trader, partnership or a limited company? Your Accountant can advise you on the best model. Will you need to register for VAT, do you need to sort out Trade marks or patents, Data Protection Registration, contracts etc? Download the guide at the bottom of the page to help you to consider your options.
Step 5: Sort out the practicalities - business cards, stationery, staff, telephones, computers, insurance, stock etc. Download the checklist template at the bottom of the page so that you don't forget anything and plan your time effectively.
Step 6: Get going! Tell your customers that you are open for business. Sort out your marketing, selling, networking, trading, PR - check out the page on marketing and PR for your new business.
Step 7: Keep going! Just launching your business isn't enough. You may be tired and exhausted and hopefully happy but don't let up - the work has only just started, you have to keep customers coming and paying willing for what you have to offer. Download the checklist at the bottom of the page and use the yearly trading planner section to help you plan your activity in a coherent manner.
Remember it could take much longer to pull all the strands together than you think - anything up to six months. So, don't hang about once you've set your mind on your goals.
Useful Resources
To find our top business reads and book recommendations click here
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Finance jargonbuster.pdf - 50kb Download this file |
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NLN Example Business Plan - 36kb Download this file |
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NLN Basic Business Start-up Guide - 57kb Download this file |
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newlifenetwork.co.uk business_start-up_checklist_2009.xls - 34kb Download this file |
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