Five questions to ask before starting a successful small business

Your why is at the heart of everything you do. It’s what will keep you going when you’re facing hurdles or working extra hours ahead of your next launch. It’s the reason your customers and clients will buy into your business over your competitors. It’s what will make you stand out from the crowd.

Your business might focus on innovation and providing the best value to customers, or you might be driven by your dedication to building a sustainable business. This will be the foundation of your mission statement, vision, and core values.

Ask yourself:

• Why do you want to start a business?
• What is your unique selling proposition (USP)?
• Who is your target market and why?
• What makes you stand out in your industry?

Every great business starts with an idea. This could be a problem you’re going to solve, a service you think you can deliver better, or a gap in the market. But how do you know if the possibility is viable?

Ask yourself:

• What will your business do?
• What will you offer?
• Will you be service or product focussed?
• Will you need physical premises, are you going to operate online or will you run your business from home?
• Will you be working alone or will you need the help of a team?

If you have identified a gap in the market, you’ll want to research your target audience and the viability of your startup business idea. If you’re making the shift from employment, building the foundations of your business on the side whilst still having a reliable income stream can make the transition easier.

It’s also becoming increasingly common and more accessible for entrepreneurs to start out online as an ecommerce business before expanding into other areas. 

Your business plan is a written document that includes a brief description of your business. It looks at several areas of your new venture, such as:

• the objectives
• strategies
• sales
• marketing
• financial forecasts.

The plan will provide you with a useful summary of your business that sells your ideas and ambitions to potential customers, suppliers or even staff.

Why your business plan is so important

Whilst you might be eager to get on with running your business, rather than filling out more paperwork, putting a solid plan in place means you will be able to:

• Visualise your long and short-term goals and objectives
• Measure your progress and performance
• Clarify your business idea or business proposal
• Spot potential problems before they happen
• Understand how your business can grow
• Get clear on your company branding, marketing and digital strategy

Don’t forget, if you’re applying for start up finance, you’ll need to consider extra elements of your plan to strengthen your application to lenders. From budgets to cash flow forecasts, your business finances are not something to ignore. You might also find it beneficial to hire an accountant or enlist the support of tax specialists to help you get it right when tax season rolls around.

Marketing your business has never been easier, as long as you have the know-how. Social media has made it easier for small businesses to gain traction online and reach wider audiences beyond their local communities. If you want to level up your digital skills, it doesn’t need to break your budget. There are plenty of free digital marketing courses and resources available online – try Informi’s 43 free low-cost marketing ideas article and digital marketing on a budget ebook.

Another key aspect of starting a business is the legal documentation that you’ll need to have in place, such as insurance or health and safety. Registering your business, whether as a sole trader, limited company or partnership is a big step in your journey. You’ll want to think about what will suit your business model best and be aware of the implications and responsibilities of the option you choose.

You’re bound to have lots of questions about what requirements you need to fulfil as your own boss, so it’s helpful to know who to contact, such as trusted advice from legal and tax professionals.