There has never been a better time for entrepreneurial ventures, especially in the tech sector. The media is enamoured with tech start-ups, which often read like the Cinderella tale. Shows like Dragon’s Den have made the funding process an odd combination of game/reality programme.
But the main reason this is such a good time for those looking to start their own business is the unprecedented amount of support available and the easy of starting a business in the UK.
A large majority of new start-ups seem to be the result of teamwork. In the tech sector especially, it appears that the team concept is almost a requirement for a successful business. However not everyone has a best friend or university friend that shares their interests.
The rise of incubators and co-working spaces has provided entrepreneurs with a rich creative and collaborative environment in which to perfect ideas and concepts. There are over 150 incubators in the UK. Each incubator is designed to help with particular stages of the company’s growth.
- Start-up incubators – These are for those who are still in the idea stage or the very early stages of development. Space is typically provided free or at heavily subsidised rates.
- Business incubators – These usually serve early to mid-stage development and are typically set up along business specialty lines.
Of course, funding is essential for any new business. Here, the level of support is also promising for those looking to launch their own business. Interest rates for commercial loans, at the moment are at reasonable levels and banks are not totally averse to start-up funding. Many incubators include business accelerators which provide seed money to start-ups. A large number of private companies have also been launched over the last few years, whose main business is to provide seed capital to new and established companies. The Gov.UK website also has a list of groups which invest in businesses and other financial resources for SME.
Steps to Starting a business
The basics of starting a business are actually fairly simple with only slight variations between types of business, such as services versus goods, or location, online or brick and mortar.
- Develop a business plan
Most business consultants state that a well thought out and complete business plan is the keystone of any successful business.
In addition to providing a CV of the founding members, the business plan should clearly define the product, the target audience, the competitive marketplace, and the stages of growth, available resources, financial needs, and profit potential the first few years of the company’s existence.
The business plan is essential in obtaining funding, incubator support and the actual operation of the business in the early stages.
- Decide of Business type.
All businesses in the UK must be registered. The process is fairly simple with only four main business types. Most start-ups begin as Sole Trader or Partnerships, although some chose to take on the additional paperwork and form as Limited Liability companies or Limited Liability Partnerships.
- Ensure you are Compliant
All businesses in the UK are required to have business insurance. Links to the types of insurance offered and a search tool for business insurance may be found at British Insurance Brokers’ Association (BIBA) website. Likewise, there are a number of government regulations and schemes for many types of businesses. You can check for any required permits and regulations at Gov.UK.
- Remember To Take Time Out
It’s easy to get carried away and snowed under with your new business venture as it will take up a lot of your time. This can mean you may neglect your personal life. It’s important to not let this happen and factor in ‘you’ or family time by enjoying the things that you like to do for example, taking holidays, social interests and relaxation. additionally, Don’t let money be the excuse for not looking after your personal needs and a way to combat is to take out a low interest loan which enables you to spread out your payments as you get your business up and running.