As the UK is still suffering financially and running the risk of a triple-dip recession, it may seem like the worst time to start a new business. However, this year could be the best time to start a new business as long as you take the steps to improve its chances and make money. You will need to have a great business idea, the marketing skills and the flair for networking to succeed. Here are top tips for making money with your startup this year.
Find Gaps in the Market
You need an idea – and a good one! You need to find something that has little competition and where there is a gap in the market. This means looking around and doing research. This can take time and you may not even know where to start a new business. Start off by making a list of everything that you can do or that you like doing. Write everything that you can think of down, even if it does not sound like a good business idea.
Once you have your list, it is time to check online to see if there are gaps in the market for them. Go through them one by one. A lack of competition does not mean that it is a good idea; it needs some competition to survive as it proves that there are people out there looking for that product or service. Social media is a great place to start a new business and your search as so many people and businesses are now there. Narrow your options down until you have one great one that you will enjoy doing.
Learn More About Your Target Audience
Once you have a business idea, you need to think about the people who will buy it. This helps with creating a business plan and marketing your company. There is no point using one type of marketing if that is not the way your audience will search for you. Social media will give you an idea of the type of people interested in your product or services. You can also look at your competition to see how it uses marketing to target people.
Do You Really Need a Store?
Opting for a store on the high street may help people see you but it is expensive. Many large businesses are closing down because of the high prices demanded for high street stores and offices. Even those off the high street are highly priced and will mean that you have to earn thousands a day just to stay afloat. Question whether you really need to have a store.
There are many options for selling online and distributing from your own home. You could organise a deal with a local courier service or deliver yourself. You just need to make sure that you have a room in your home to store everything comfortably.
Do You Have a Good Business Sense?
You may have the idea but do you have the business sense? Without a business head, you will not be able to get the finances you need, network with potential investors or organise the workings of your office. There is nothing wrong with admitting that you need a partner; someone who can handle the business while you handle the product or service side. This will take a lot of weight off your shoulders so you can focus on the quality.
When looking for a partner, you need to find someone that you trust. Avoid pressuring anyone to work with you as it will lead to the partnership breaking up. You will need to create strict goals and areas of business that you both control to avoid arguments.
You Do Not Necessarily Need a Bank Loan
A common worry when starting a new business is the finances. How will you start the company? Can you get a loan? So many people worry about getting the bank loan that they fail to work on the other important areas. While finance is important, getting your name out there and selling products is too. Loans need to be repaid and you do not necessarily need that extra money. Keep your business simple and avoid forms of finance and you lower the risk of too many outgoings to make a profit.
Starting a business in 2013 is not going to be easy but it will be worth the time. However, many are doomed to fail before they even start. Following the above tips will help limit the risks to starting your business in the recession and help make a profit to succeed.
Alex has written many corporate related articles for Real Business Rescue. Over the past year she has written topics relating to business insolvency and company closure as well as well as a wide spread of information relating to corporate insolvency. Real Business Rescue are business insolvency experts who offer free advice and support to company directors who face financial distress.