7 important factors to consider before starting a business
Cut out the risk and give your startup the best chance of success by following these seven top tips from Quality Formations' Graeme Donnelly...
Are you planning to start a business of your own? Not sure what the road ahead may entail? Well, there are some important factors to bear in mind when launching a business.
Having spoken to entrepreneurs, we have highlighted these guiding factors from their experiences, including Graeme Donnelly, a founder of online company formation agent Quality Formations.
Graeme Donnelly is an entrepreneur with multiple businesses, with almost 20 years' experience. He has founded several leading online company formation agencies, which have offices around the UK. Quality Company Formations has worked with Barclays, Lloyds and Namesco.
These factors to consider when starting a small business could help you to eliminate the risks and obstacles you'll face on the journey – take note to help prepare you for success!
1. A great idea
“No business can develop in the absence of a great idea. A great and a practical idea is the only thing on which the development of your business will depend. Moreover, as a lot of companies are involved in the market, you need to have a unique idea that stands out.”
Not sure what your great idea is? Explore our business ideas hub and get inspired.
2. Funding and budget
“The next important factor that should be considered involves the funding of your business. You need to properly identify the sources through which you will be able to get the funding for your business. Moreover, it is better to have a plan so that the budget of a company can be properly maintained.”
What are the options for funding your business? Discover the different ways of raising finance.
3. Analysis of competitors
“You need to know what your competitors are doing and what are their strategies? With this knowledge, you will be able to take appropriate decisions about your company. It will also help you in developing a much more effective strategy for your business.”
4. An effective business plan
“No business can develop fully in the absence of a business plan. Writing a business plan can help you determine if your idea is feasible and provide direction. With a business plan, you will be able to know every next step that should be taken.”
Visit our business plan template page to get started.
5. Legal documentation
“The next factor that needs to be considered is the completion of legal documents. For the sale of some specific products and services, there are some requirements for the preparation of legal documents. Make sure you have already done all the legal documentations for your business.”
Our legal issues section can help you to understand some of the common concerns.
6. Positive attitude
“It is one of the most important things that will help you in passing all the challenges and difficulties. There will be a lot of risks and hurdles you will face in this process and the only thing that can save you will be your positive attitude. You will have to work hard to develop a company of your own.”
7. Know when you need help
“The development of a business is not a matter of seconds, it will involve a lot of time that is spent with hard work. However, in this process, you will be needing the help of some experts. Make sure you already have an adviser who can provide you with the best advice at the hour of need.
“These are the seven most important factors you need to consider while starting a business of your own.”
Next, visit our 10 steps to starting a business for more ways to help you get going and set up your startup. Or, read our business tools page for more information. Good luck!