Is 2021 the year you’ll get going with that startup business? If so, you are in the right place!
We get to work with many great new start-ups as accountants, so if you’re planning that startup business in 2021, read on for some tips.
1. Start with a plan
One of the biggest mistakes we see is new owners not planning their finances. It doesn’t need to be an overly complex plan, but you need to understand things like:
- How are you going to fund it?
- How much cash do I have to survive on personally?
- How long can I go before getting paid?
- What happens if my customers do not pay me as quick as I’d hoped?
- How will tax impact my own money
These are just a few key examples. To help with this plan, check out our cashflow blog, which includes a downloadable, (very) simple spreadsheet that you can use to help plan.
2. Know your offering
Do you clearly understand what you are selling, how to price it and the benefits to the customer/client? This is a key issue often overlooked.
Can you explain what you do in a short statement?
If someone asked the question ‘How much does it cost and can you explain exactly what I will get’ – can you answer it easily?
Having asked this question of our clients often, this lack of clarity is very common. This is a problem when you are trying to find and communicate your value to customers/clients!
3. Decide what you are going to trade as
These days there are a few options for ‘business structures’, but for most businesses, generally it comes down to a choice between a limited company or sole trader.
To help with this decision, be sure to check out our blog on the subject.
If you decide to trade as a limited company, we have a guide here.
4. Have a solid plan for getting customers
One common misconception we see is new start-ups believing it is easy to get customers or clients. For most businesses, this is simply not true at the start, at least not without massive effort.
The internet is not a magic wand.
Having the perfect website does not mean people will miraculously do business with you.
Attending a few networking events won’t magically generate customers/clients.
All of the above can and do work, but take a lot of effort and more often than not, time. Time can be the issue without a solid plan, as you can run out of cash.
5. Consistency is key
From our experience working with small business, consistency is very important. Whether its financial planning or your marketing efforts, the consistency of repeating these key tasks over time is critical to business success.
Being amazing at planning your finances once at that early stage, but never reviewing them will cause issues.
Sticking out a video a day on your social media for 2 weeks will likely not yield the results you are hoping for.
Show up, do the boring stuff, all the time and regularly and our experience says you will have more success.
Hopefully, this has given you some food for thought. If you need help planning those finances or sorting out your business structure, please do get in touch with the team.