Thinking of starting your own business? The outlook might be brighter than you think.
According to new research from insurers Simply Business (link www.simplybusiness.co.uk), 62% of Britain's small businesses expect to increase profits over the next year – despite the bleak economic climate.
This positive outlook chimes in with our experience at CareerBalance. As the job market contractsmore and more, people are turning to running their own businesses – and making a success of it.
Becoming your own boss is an exciting prospect, but many would-be entrepreneurs fall at the first hurdle because they haven’t adequately thought things through.
The first thing to do is research your market. Ask yourself, who are my potential customers and how will I sell my product to them? Check the costs of marketing, particularly on-line marketing. These costs can be high. A Google Adwords campaign is likely to start at around £250 per month. You’ll also need an effective website, which should be search engine optimised.
Banks are being much stricter about lending and will want to see a thorough business plan. The advantage of this is that it forces you to produce a well-constructed plan based on real figures. It will also make you stand out against your competitors: more businesses than you might expect don’t have a proper business plan.
Once you’ve completed your business plan, you'll either get a rude shock as you realise your business model isn't going to work, or a pleasant surprise with the realisation that it’s going to make money. After that, do some more research into what the competition is offering.
Small businesses are providing a vital chink of light in an otherwise depressed economy, and I’m glad to see the government is renewing its commitment to the sector http://www.bbc.co.uk/news/business-15937366
I also hope the banks will match government support with more competitive lending. With loan rates to small businesses at almost 10 percent whilst the base rates is 0.5 percent, there’s plenty of room for the banks to give small businesses a bigger helping hand.
Posted by Simon Broomer, Managing Director and Founder at CareerBalance Ltd.
