Tips on How to Start a New Business

Are you thinking of becoming self-employed? If so, follow our tips below to start a business. Here are the best tips to start a business from a successful business owner:

 

Tip One: Do Not Run Before you Can Walk

Sometimes I feel like I was in the early stages of a lifetime. Strictly speaking, it describes four exciting, stressful, slippery, gaining confidence and many more years. However instead of starting quickly and failing it is better to start when you are really ready.

My light bulb happened in 2006 when I was on vacation to visit my father in China; For the first time in my life I was surprised to see electric (like Vespa) scooters zipping everywhere. A quick Google search when I got back home confirmed that I was not walking blindfolded. We did not return here on the flight.

On the flight I saw Al Gore’s documentary: ‘A Difficult Truth’. I was sucked in! So you have it, a consumer need and a product to deliver it. Happy days. This is the tip.

However I was completely sold on this idea but unfortunately I was not in a position to start straight away.

 

Tip Two: Make Sure You Have Some Savings to Search for your Startup

If you are not the first, many (if any) investors will not put money where your mouth is.

I am very lucky to be a property owner at 26 years old. That’s when the idea came to light. However, I still had one year to do the three-year mortgage tie-in. I know I have no experience in the electric scooter market. There is no one else in the UK in that regard.

So I had to do a lot of research. Set aside a large part of my time to achieve it. So a year later I sold my flat for a pretty profit. I left my job in London and went back home to sticks.

I spent five months alone, combining nuts and bolts to build my business. To date I have invested over 20,000 in my own money and I can get it on receipts. I know investors have taken me very seriously.

The good news is, I’ll make a profit when I actually start. You see this money will be repaid to me as a Directors loan. In my view, coming down the property ladder is not a risk. In fact, it helped me train myself in a particular area and follow my dream.

 

Tip Three: Get Out of your Research

All investors want to see a business plan, extensive research that supports your idea. My biggest concern is the quality and cost of the product. Can I import this product and really make a profit?

Is it possible to buy and import shares? Paying duty and VAT and saving and delivering to a head office space weekly? Not to mention the pay for a retail division, the hiring of employees, the marketing of the business, and the finding of consumers. There is still money in the pot to turn it into a viable model. The answer is really yes.

But how did I get there?

 

Tip Four: Don’t Overdo your Finances – Be Honest

All investors / banks / grant applications want to see your profit and loss forecast. Draw a line in the center of the A4 page, then list all the logins. Then make your funds on a monthly basis and then for more than three years.

If your model is similar to mine, your outgoing list will be much longer than your revenue. At first I worked with two products in the range. With ‘on the road’ expenses and additional revenue from the insurance companies ’commission.

My outflows include stock and related inventory value, marketing communications, phone calls, staff salaries, stationery and positioning, heating and electricity, attorney & accounting fees, corporate branding and photography, travel and accommodation, corporation taxes and and.

Once you are happy with your P&L, make sure you can really deliver your sales. Don’t worry too much about yourself because it is best to achieve.

Turning your P&L forecast into three different scenarios is a good exercise; Low sales, medium sales and fast growth sales. Be realistic in everything. Can you tell if you will go down if all of that goes to Beat Dong (low sales scenario)?

 

Tip Five: Guides Rock – Make Sure to Have One

Now if you are really interested, you will attend a lot of free business events. Introduce yourself to many talented speakers and protect yourself as a celebrity guide. Just because someone runs their own business does not mean they will be a good guide.

Getting a few different guides is also a good idea – I’m lucky to introduce myself to former BBC 2 Dragon Duck Richard at one of his elementary school events in Edinburgh. I did not ask him for money, I explained my business model in one sentence and asked for advice. You see, I do not feel unnecessarily or desperately. I was lucky to get the first appointment because he liked my idea.

But remember to be flexible; it took five emails and numerous phone calls before getting that first appointment in the diary. I also liked the advice of a woman who is a woman entrepreneur, so after attending various start networking drinks and dinners.

I am fortunate to be introduced to Susanna Simpson, the founder of Limelight PR, a young successful businesswoman. And was very happy to get advice from Susanna on personal matters. The guides will keep you strong when it is hard to go, remember they were all there once before.

 

Close Report – Don’t Lose Hope!

If you are interested in your business idea. If the idea has real legs. You have the determination and desire to do it, and then move on!