As of 2024, the Business Statistics briefing paper from the House of Commons Library reported there were 5.5 million small or medium-sized businesses (SMEs) in the UK, representing over 99% of the business population. Starting a business in the current climate may seem daunting, and you may, therefore, be seeking valuable and essential tips for new entrepreneurs.
Jo Haigh, Founder and CEO of fds, created her company over 36 years ago in her back bedroom. Over the years, there has been a mixture of positive experiences and negative moments, but starting a business is never likely to be wholly smooth sailing.
Managing Common Mistakes in Business Startups
New business owners may make many common mistakes in business startups. Mistakes are to be expected, it is how you manage them and how you plan to rectify them that can make them worthwhile, as they become experiences you can learn from.
When Jo started her business, she originally set it up as a sole trader. However, she quickly learned that she should have instead set it up as a company, as this gives you more kudos, is far easier to manage from a tax perspective, and is not as complicated as it may seem.
Starting a business means you should be willing to fail and take some risks. You also need to believe in your vision and learn from your failures as much as your successes.
Growing a Client Base When Starting a Business
One of the most important steps to launching a successful startup is growing a solid client base. This can be built by attending networking events to establish a positive reputation and meaningful relationships. These connections are grounded in mutual benefits for all parties involved.
When establishing a client base, you should consider what kind of business you will be. For example, are you cheap and cheerful? Are you expensive and bespoke? It’s important to see what you can offer, make this clear in your marketing message and be flexible to what people want and what you can do.
Networking does not stop once you have made your first connections. It is important to keep going so you can build a strong contact base that can act as a source of support and a crutch through the ups and downs of your company’s journey.
Understand a Healthy Work-Life Balance
When starting a new business, it can be hard to maintain a healthy work-life balance. Thoughts of your new company can consume your every waking moment. While your business will undoubtedly take up a lot of your time, especially in the beginning, when you are firmly established and have gained a solid client base and portfolio of work, business owners often find themselves with a lot more time. This is because they can leave the daily operations of the business to the senior management team and ultimately take more time out of the business to spend with family or pursue any other professional goals they may have.
However, that is not to say that business owners do not have to work hard. Even once firmly established in the industry, many business owners still find themselves working well into the night or over weekends. It is important to strike a balance. Ensure you are not working an impossible number of hours per week, but still working enough to secure the company’s strategy and future.
Be Financially Smart
Starting a business means that you require an experienced and skilled accountant with whom you can easily communicate. An effective accountant will help you find things that will improve the performance of your business. They could also potentially act as a mentor. If you are unable to find an accountant that you feel could be a quality mentor, then you may want to consider enlisting the services of an external mentor. You will likely require somebody to assist you as you go through this process.
Believe in Your Vision
Leadership requires vision, and as your business grows, the people you surround yourself with should inspire you to be better and reach for even more success. You may perceive these people to be better in business than you, or have certain qualities that you lack, which can be difficult to navigate and even lead to feelings of impostor syndrome. However, do not be afraid to admit your weaknesses and find people who can help you in areas where you struggle. When starting a business, you will put in a lot of time, effort and resources to make it a success. Your company is special, so you will want to protect your IP. You should also never be afraid of competition. Instead, you should see this as a motivator to work both smarter and harder. Starting a business will likely be a complicated, time-consuming and sometimes exhausting journey. However, if you have a vision that you truly believe in, it is worth all the hard work and effort.
Ready to Start Your Own Business?
Considering starting your own business and weighing up the pros and cons? Jo Haigh’s book The Entrepreneur’s Guide to Starting A New Business is just what you are searching for. This book is a valuable resource for making the first steps of the process as smooth and straightforward as possible.