SEVEN STEPS TO START-UP SUCCESS

 Starting a business is one of the most exciting things you can do. But it also presents challenges. The economic outlook may be uncertain, but by planning ahead and taking heed of expert guidance, there’s no reason why your small business can’t get off to the best possible start and go on to be a big success.
 
Choosing a company name, finding premises, hiring staff, winning customers and the list of important start-up tasks can seem long. It is important you get the basics right at the outset. Before you get going, it’s crucial you have a business roadmap. This will help you make the right business decisions and anticipate problems before they occur. It’s also important to take advantage of the wealth of advice that’s aimed at small businesses like your own.
 
In the UK, more than 60 per cent of businesses are now started from home – that’s more than two million home-based companies, with over 1,400 new ones launched per week. Home businesses now account for more than a quarter (28 per cent) of the UK’s employment and everyone is getting in on the action – from the young to over 50s to stay-at-home parents.

Many launch their own enterprises from home because of their desire for a better work-life balance or to increase their income. The development of reliable, fast broadband connections and bespoke technology packages now underpin their ability to do this.

One of BT Business’ recent studies found that 45% of British workers believe the risk element is not an obstacle when starting a business and nearly two thirds feel confident that they have the knowledge to go it alone. Another survey found 65 per cent thought they had done the right thing in setting up.

It is important, however, that these entrepreneurs get the right support from the outset to survive and thrive, especially during these challenging times. We are determined to champion the cause of start-ups so their innovation, resilience and dynamism are duly rewarded and have produced a Seven-Step Guide to help them prosper.

GUIDE
1. Research your business
You must establish whether there is a demand for your product or service. You must be aware of competitors in your field, where they are succeeding and where they are failing.

Define what your business does, what it offers and why it’s different. What are your skills? What relevant experience do you have.

Getting to grips with your prospective market requires some detailed research – but, fortunately, there are a number of places you can go for help:

·     Local business organisations such as chambers of commerce provide a good opportunity to meet other business people for networking or to gain background information on the business climate in your area
·     Advice about all aspects of business is also available from the government’s free advice service for, Business Link. You can also tap into a wealth of free information on the internet on sites such as www.bt.com/insight
·     There are also a number of good online polling tools, such as www.surveymonkey.com, that are either free or available for a small subscription
·     Finally, remember that e-commerce is a significant factor for many businesses these days, so take a look at what other rival businesses your potential customers will find by taking a look at Google

2. Build a plan
Fail to plan, plan to fail may be a cliché but it is true nonetheless.

A successful business plan needs to prove your idea can translate into reality. That means laying out what your business will do, how it will make money, where you will position yourself against rivals and what your exit strategy is so you can get out on your own terms.

This vision must be a comprehensive strategy focusing on costs, financial forecasts, marketing, hiring staff and attracting customers.

Your business may take a while to get up and running so make sure you have sufficient funds to tide you through the early journey. Take professional advice from a mentor or bank manager so that you know the pitfalls as well as the benefits.

3. Getting the right location
Where you base yourself is a key factor. The majority of start-ups are launched from the home to keep down costs and allow a better work-life balance.

Remote and mobile technology opens up flexibility in this area. However, you must also consider how close you need to be to your customer base, staff or suppliers.

If based at home, it is important that you establish a proper dedicated and tidy workspace where you can install your phone and computer and keep hard-copy files.

You must be able to distinguish between your business and personal life so that you are able to function without distractions.

4. IT & Comms
The first and most important consideration for any company should be around communications. You need to be contactable during the working day via a range of media, including telephone and email.
 
Critical requirements usually include a landline, mobile and internet connection to allow you to easily keep in touch with clients, suppliers and colleagues.
 
In the current environment, a secure, reliable broadband connection is critical. Not only does it provide you with high-speed surfing capabilities, faster email and phone calling functions, it also opens up a range of tools and networks which enable effective business administration and collaboration with colleagues and clients.
 
Many of these features - such as additional Voice over Internet Protocol (VoIP) lines, allowing you to make calls over your broadband - and security software, are available for free or included as a standard part of certain business broadband packages.

5. Getting online
Having an internet presence is essential to carry out your daily business tasks and transactions and your broadband is the key to that.

However, you need to ensure your monthly download limits are suitable for your business needs. For example, design companies that use large files might need more bandwidth than a company in the retail sector. You should also check out the security features that come with your broadband package, such as virus protection set as standard.
 
Other questions to ask are: Can your provider supply a business-grade firewall?

And does your supplier provide around the clock support and offer mobile broadband so you can work anywhere at anytime?

6. Marketing yourself effectively
A professional online presence is no longer just a ‘nice-to-have’ for businesses, it’s a prerequisite – no matter what size your company is or the sector you operate in. For small businesses in particular, an online presence can open up a world of possibilities and opportunities – creating a new sales channel, reaching out to potential customers and providing a cost-effective platform to network with other businesses.

As a small business, the key to surviving in an uncertain economy is to stand out against your rivals. This means not only running your company more efficiently, but also making sure your voice is heard by the audiences that matter to your business.

A good way of doing this is to sign up to business social networking sites, such as bttradespace.com. These sites are free and easy to join and allow you to interact with customers and promote your offering through emails, blogs, podcasts and videos.

7. Controlling costs
Your business must have proper financial controls. Keeping accurate records helps you fulfil legal obligations – while also helping you monitor your financial position.
 
A successful enterprise generates enough cash to cover costs and make a profit. Most businesses are not expected to be profitable from day one, but they are expected to have a plan outlining how and when they intend to reach this point.
 
You should produce a break-even analysis. This is an estimate of when the price of your product or service will equal the cost required to produce it. The calculation of your production costs should include a percentage of all your predicted overheads – including premises, bills and labour. As soon as you pass this point, your business will become profitable.
 
As you launch and grow, your underlying business costs tend to increase too, so controlling them is one of the simplest ways to improve your company’s bottom line.
 
Where IT and communications costs are concerned, for example, it is imperative to look at your business’ systems and requirements as a whole. This will enable you to clearly see just where savings can be made and ensure that you are still planning for the future so you remain competitive in the longer term.
 
Bringing together IT and communications services like broadband, fixed-line telephone and mobile, simplifies things by reducing the number of suppliers that have to be managed and ultimately helps control costs.

By Ian Bushby, Head of Start-ups, BT Business.