There is a temptation in business to take action without considering the consequences. It’s rather like setting off to a new destination without a road map or Sat Nav.
There are minor events which do require a speedy response and most experienced entrepreneurs can deal with these events without undue risk. However, there are occasions when “flying by the seat of your pants” can be expensive.
New Business Ventures
This is especially the case if you are planning a new business venture. A few issues that you need to consider are listed below, but there is no substitute for discussing your ideas with someone who has experience running a similar business or a business adviser: an accountant for example.
Most local authorities have support organisations that provide advice and encouragement to budding entrepreneurs.
New Business Check List
The following check list may not cover all the issues you should consider, but it’s a good start.
- Try and avoid setting up in a business sector in which you have no personal experience. If you are a computer programmer who has never cooked a meal think twice before opening a restaurant.
- If possible, try and ease you way into business. Could you start on a part-time basis and retain your day job? In this way you can prove that your business idea works before losing your regular pay-cheque.
- Do you have the skills required? Should you undertake an initial training course or seek employment for a period to gain the necessary experience?
- What do you know about your potential competitors. Make a list and take a detailed look at their websites.
- You MUST prepare a detailed business plan. This will cover financial aspects but will also contain enough information to convince a hard-nosed bank manager that you stand a chance of success.
- Be careful before you speculate your hard-won savings or redundancy payout.
- Unless required by the nature of your business, avoid signing leases or entering into long-term contractual arrangements until you have proved your ideas work in the real world. For example, delay opening an office and work from home.
Consequences of Coronavirus and the Internet
The current disruption has, and will continue to have, dire consequences for many employed in vulnerable sectors of the UK economy. Unemployment will rise.
Many who lose their jobs may be tempted to set up their own businesses. If you fancy trying self-employment, please consider the above check list and one further pointer.
Businesses that are able to sell their goods or services directly from their websites can avoid many of the restrictions placed on businesses by the needs to socially distance.
And finally, take professional advice. If you don’t have access to a local accountant fill out a request using our NEED HELP contact form and will will endeavour to forward your details to an adviser prepared to offer you an initial phone or online consultation on a complimentary basis.