Thinking of becoming self-employed or starting your own business?

 

If you’re thinking about setting up your own company, getting your Business Plan right is crucial.

A business plan gives an outline of your business, the market in which it will operate and how it aims to make money - and should answer this question: why will your business succeed when so many others fail?

Be concise
It’s really important that potential investors can understand what your business is all about from a quick glance at your plan. Make sure you include a summary of your business, and how it will make money right from the start, and use simple language throughout.

Be specific

Being specific is just as important as being concise. The details will help you drill down into how you will actually deliver your plan.

Know your market

A big part of knowing whether your business will be successful is understanding your audience. Make sure your plan is clear about your target market – who will you be selling to and how many other companies are already selling similar products?

Know your finances

The other essential part of a business plan is the finance section. If your business isn’t going to make any money, it won’t be successful so you need to be very clear on how you will make a profit. Use it to your advantage – your plan will be incredibly useful when it comes to securing loans and investment, but that’s not its only use. It’s also a personal tool to help you understand your objectives.

Marketing is vital to business success. Think about big brands like Apple, Innocent and Burberry. They have all successfully identified their target audience and have tailored their marketing to suit them, which has helped them to develop a clear identity.

Market research is key, to help you understand your target audience. The more you do, the easier it will be in the future to make decisions about your marketing strategy, pricing, budget and sales target. There are several methods for conducting market research and you may need more than one.

Market research will help you to:

§  Work out whether there is a market for your product or service and how much demand there is

§  Who your target customers are and what your product is worth to them

§  How you will reach your target customers

§  Who your competitors will be and how they operate

Brand identity
Once you’ve done your market research, you can use your findings to help develop your brand.
Think about the impression you want to give your customers and how you can deliver that. For example, if young people are your target audience and you want to be known for being cool and creative, make sure everything from the way you dress to the language of your marketing materials shows that.

Once you’ve identified your customer base and worked out your brand identity, you can start to develop your marketing materials.

Having your own website is a really powerful marketing tool. Making sure it is professional and matches your brand is really important.

Finance & Legal considerations

Start-up costs

Once you’ve worked out your own monthly outgoings, you’ll have an idea of how much your business needs to make for you. After that you’ll need to think about the start-up costs you’ll need to get your business off the ground.

Tax

Once you’ve set up your business, you must register as self-employed with HM Revenue and Customs (HMRC). HMRC has loads of really useful information on setting up a business, including an e-learning package called Starting in Business. For more detail on registering your business with HMRC and further information on setting up in business, visit their website. www.gov.uk

Insurance

All businesses need insurance as soon as they start trading. Some types of insurance are required by law and should be in place before you’re up and running. For example, you must have employers’ liability insurance if you employ people.

The broker or insurance company you use should be registered with the Financial Conduct Authority (FCA).

Want a helping hand?  If you’re 18 to 30, living in the UK and have a business idea or some ideas to explore, the Prince’s Trust’s Explore  Enterprise programme could be for you.

Visit www.princes-trust.org.uk for more information