Three challenges when starting a business
The business start-up scene is thriving. Statistics are showing that record numbers of UK businesses are being set-up. With a recent study also showing that self-employed people earn more and work less than their salaried counterparts, it’s easy to see why business start-up is so buoyant. The study of more than 5,000 self-employed workers highlighted that their mean annual turnover is over £32,000 – £5,000 more than the average UK salary!
As well as the financial benefits, the flexibility and life balance that working for yourself can offer is attractive. However, the process can sometimes feel like an uphill struggle and whilst all the benefits of working for oneself can of course outweigh the difficulties, it is important to recognise the challenges that will lie ahead in business start-up.
Staying motivated – this is a key element and one that those making the transition from employed to self-employed can struggle with. Having no boss setting an agenda offers the opportunity for procrastination or distraction. Create clear deliverables for each day to ensure there’s a schedule to work to and that all time spent in the business is optimised. This is particularly important for those working from a home office or alone, if they have not yet taken on employees. Additionally, get out and network as much as possible. This is vital in the early stages of business from both a marketing point of view, to keep you in touch with the working world and to share ideas/learn from others.
The F word – funding is key to any business start-up and whilst bank lending would have traditionally been always the first port of call, the amount of funding options available now are endless. From crowdfunding and peer-to-peer lending to government-backed funding schemes – it’s worth exploring fully what is available and getting specialist advice on what is right for your business and goals. A new funding stream has just been launched for Birmingham – a partnership with Birmingham City Council, a business loan provider and a peer-to-peer lending platform, which aims to generate £3m to help improve access to local business start-ups in the region. With the availability of alternative finance available these days, there really is something to suit every business type.
Creating efficiency – time-consuming but necessary administrative business activities are the bane of every business owner. Investing in a process to make these more efficient will save time, money and indeed, sanity! A good accountancy software package will make lighter work of tasks such as invoicing and expenses filing – as well as a variety of other functions when choosing one of the latest systems. Adams Moore offers Xero, which is an extremely efficient system with high functionality, and offers high security with fingerprint access for use on devices.
Any start-up will benefit from specialist advice at the outset to ensure business plans are robust, funding plans are the right ones for the business and that the best processes are implemented. This provides a solid foundation to ensure the business survives, thrives and grows.
Want to talk more about our fixed fee advice package for those starting a business? Call us now on 01827 54944.