When launching a business from scratch, it’s important to take care of the key start-up tasks in order to ensure your first year of trading is a success. It’s a well documented fact that around 20% of UK startup businesses fail within the first 12 months*, underlining just how important that initial period is. One way you can improve your chances of success is to learn from others who have already been on the same journey (and made it through) that first year.

Sound Advice: get year one in business right provides expert tips and advice from small business owners, who each fortnight delve into a whole host of practical topics with small business expert and leading business journalist, Rebecca Burn-Callander. Each episode features advice on a range of topics including writing business plans, getting your finances on track, pitching your business and leveraging the power of social media.

Here is a taster of Sound Advice top tips to help every new business hit the ground running…

Write a business plan

One of the first things you should do is write a solid business plan. Research from Barclays shows that one in four businesses don’t actually have a business plan*. However, they are so useful in giving you a practical framework  to help you get on track and focus on the finer details of your business. In addition, a business plan also emphasises the purpose of your company, what you offer, your strategic goals and should provide clarity to help you work towards a series of milestones to ensure your company continues to grow. It should also outline any problems or challenges you may have now or potentially could face in the future.

These plans can also help you identify any potential issues or flag any questions that you don’t know the answer to, which means you can then proactively develop a strategy. Moreover, a comprehensive business plan can also be beneficial when it comes to applying for finance, as lenders often look more favourably upon applicants who have one in place.

The next question you might be asking is what should a business plan include? Well, to start off with it should begin with an overview of the business itself followed by an outline of your main business goals. This is known as your executive summary and briefly tells the reader what your company does, why it will be successful and what you hope to achieve. Next, you’ll need a market and competitor analysis along with your overall marketing and sales strategy to show how you’re going to market your business. Finally, you’ll need to include any financial projects as well as your budget. This will help you if you need to apply for funding at any point.  However, the best thing you can do is to listen to episode six, with Sahar Hashemi, co-founder of Coffee Republic and hear first hand about how she created a smart business plan that works.

Decide who your target audience is and research their buying behaviour 

Next, you’ll need to define who your target audience is, how you’ll reach them and how you’ll discover what you need to do in order to turn them into paying customers.

Understanding their needs and developing your products and services accordingly is an important part of making your business a success. This could include asking for feedback on your current products or services as well as finding out what areas of your business they like or dislike. These kinds of actionable insights can then help you to improve on specific areas of your business, and/or, provide ideas for new products or services.

Other potential ways to reach your target audience include researching what your competitors are upto and finding out how they are attracting new customers. In addition, social media can also be a great way to research what potential customers are saying, as well as being a great tool for promoting your business more generally.

Episode six discusses this with Sahar Hashemi, co-founder of Coffee Republic, and advises people to take their time to fully research the industry and market as this lays the path you’ll follow to build your business. Once you’ve researched an industry, you’ll know your target audience better and can then decide the best means of acquiring customers within that industry.

Should I stay a sole trader or register as a limited company?

When you start a business you’ll face the decision of whether you want to register as a sole trader or a limited company. If it’s the former and you become successful then the question will likely come up again – should you change from being a sole trader to a limited company?  This process can be daunting but Sage highlights exactly what you need to know before you do this in episode 16 of Sound Advice: Get year one in business right with Mike Psaras, Tax Accountant and Advisor.  If you do decide to register as a limited company it’s important to write yourself a checklist listing all the information you’ll need before registering, so you don’t miss anything out.

It’s important to note that whether you initially decide to set up as a limited company or sole trader, it’s a legal requirement to register with HMRC. Sole traders have until 5th October in their second tax year to do this.

Managing your business finances

It can be hard to keep track of your business finances and it can be even harder understanding your monthly costs before you get going. One way to help you stay on top of all this is by investing in accountancy software which will allow you to better manage your company finances and business admin. Common features of accountancy software include support with forecasting your cash flow and managing your invoices to help you get paid on time.

Of course , some startup business owners would prefer someone else to manage their accounts by hiring an actual accountant. Episode 16 with Mike Psaras includes tips on tax requirements and accountancy fees, as well as how to gain maximum value from your accountant.

Explore Social Media 

Social media is a great tool for startup businesses as it provides multiple opportunities for business growth. Some of the most common methods are through sponsored advertising, with the ability to target hyperniche audiences, either locally or within a specific demographic or cohort. As well as paid advertising social media can also be used to promote your business organically, by registering and then posting regularly on the most popular social media platforms. Moreover it’s also a great way to stay in touch with customers as well as an opportunity to find new ones. Jess Gohl discusses how she leveraged the power of social media in order to help grow her business in Episode 17.

Dr Zara Nanu, activist, campaigner, and founder of Gapsquare also explains in episode 14, “Getting in front of a company can be reasonably straightforward if you are savvy with using LinkedIn. And like I said before, understanding the people that you’re trying to connect with, understanding their challenges, and connecting with them around specific issues that they’re having or that you’re having where they can help you.”

Pitch for success 

If you’ve just set up a business and are looking for external funding then you’ll need to know how to attract investors. Usually this will involve some form of verbal pitch where you sell (pitch)  your business to potential investors. If you’ve never done this before then  walking into a room and pitching to strangers can be a daunting prospect, regardless of the audience size. Episode seven with Sarah Norford-Jones, co-founder of YEO Messaging, looks at pitching specifically and how you can pitch for success.

As you will often only get one chance to make an impression at each individual pitch it makes sense to brush up on your presentation skills in advance? Accelerator programmes and pitch practice events can really help improve confidence. In episode seven, Sarah Norford-Jones, co-founder of YEO Messaging, explains, “The value that we got from attending an accelerator was extraordinary because not only did they help us hone our pitch and how to present what investors were looking out for, they put us in front and gave us access to investors, as well as a sounding board. We got to bounce ideas off from that experience and we completely pivoted our business.”

However, even if you’re not planning to pursue funding opportunities straight away, or at all, having a solid elevator pitch simply ensures that you know your business inside out. This will  come in handy if you eventually decide to pursue the external funding route.

Boost your startup knowledge

It’s an old adage that knowledge is power. This certainly true that startup business owners who immerse themselves in learning and understanding are empowering themselves to succeed. Not every entrepreneur knows the basics of business when it comes to launching their startup so it makes sense to research what you need to know. Moreover, learning from other small business owners provides invaluable advice that can make a tangible difference to your overall chances of success. Remember as well there is no end point, no stage where you can say you’ve learnt it all, as even the most successful business owners are learning new things every day (even unwittingly). Of course startup business owners are most of the time busy working on their business which is why subscribing to podcasts such as Sound Advice: get year one in business right is a convenient way to gain invaluable insights at a convenient time of your choosing.

Are you ready to make your business a success?

Now you know the steps to make your business a success, subscribe to the Sound Advice podcast on Apple iTunes, Spotify, or wherever you get your podcasts, for more expert tips on setting up your own business and what you need to know to make it a success from day one.

*https://www.talk-business.co.uk/2015/01/29/1-4-uk-smes-dont-use-business-plan/?_gl=1*1em3g8i*_ga*NDQ3MzQ2MjEyLjE2MzExNzUyMTI.*_ga_N0V23L0VEC*MTYzMTUzOTQ3NS41LjEuMTYzMTU0MDI0OC4w

*https://fundsquire.co.uk/startup-statistics/

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