A Guide to Setting Up Your Own Business

The good news is that there are simple steps that, when followed, turn that small seed of an idea into a fruitful and successful business.

If you're new to business and are looking for some advice on what you need to do to get started, read the following tips on how you can start up your very own company without having any previous experience:

Know who you are as an entrepreneur

Starting a business is more than just selling a product and hoping for the best. It takes a great deal of consideration and thought as to how you're going to run your business effectively. Think about where your strengths and weaknesses lie – this should help you determine what you realistically can and cannot achieve. It is important to think about who you are as an entrepreneur, what your interests are, and the traits and skillsets you possess. This will help you to come up with a business idea that is best suited to you.

Here are a few examples to bear in mind:

• If you're good at mathematics and have a great attention span, you may wish to think about setting up an accountancy business
• If you're good at arts and crafts, you could try starting a handmade gifts business
• If you're good at interacting with individuals, you may like to think about a business that involves a lot of face-to-face communication

If you have no business knowledge and feel you're in need of some guidance on how to run your company successfully, a one-year online course such as financial accounting, marketing or information systems could be hugely beneficial.

Finding a set-in-stone business idea

One of the hardest parts about starting a business is finding the initial idea that could be a success or, on the other hand, turn out to be a complete flop. Regardless of the idea's eventual success, if you're struggling to come up with anything at all, be patient and try brainstorming your interests. You're likely to make a well-informed decision; however, it's always worth asking family and friends, and even your social media contacts, about their thoughts of your new venture. Here are some key ideas you should be keeping in mind for coming up with a good business idea:

• Think of a problem to solve that means something to a target audience. If the idea hasn't yet been done before, do your research to understand whether there's a huge need for a niche product or service to help combat the issue.
• If other companies have already found a solution to the problem, think about how you can do it better; whether this be in terms of competence, a more suitable solution, or finding ways to sell it cheaper.
• Turn your hobby into a fully-fledged business, so you don't feel as though you're working every day. You're more inclined to achieve greater success if you love what you do.

Create a business plan

All new business owners need to create a business plan – it is fundamental to any hopeful entrepreneur who wishes to get their business off the ground. Once you have decided on a business idea and believe you could achieve success, you need to make a detailed plan of how your business will play out.

In very simple terms, a business plan is an outline of your objectives and predictions in the future of your business that helps you personally understand how to turn your goals into reality, as well as allowing potential investors to gain an insight into whether they see any future success to invest in. Find out how to write a great business plan here.

Choose a business name

The business name you decide on will heavily impact how your business is perceived, so it's going to take more thought than plucking a name out of the air that has no real significance. It should be short, snappy and concise, as well as being easy to spell so that customers can find you easily online.

Set up a business bank account

If you're planning on building a large company, then you need to think about setting up your own personal business account so the money you're dealing with doesn't get confused with your own personal cash balance. This isn't a legal requirement if you're a sole trader, but it would be recommended to keep your books separate so that your business transactions are simple to work out.

Choosing a suitable premises

Depending on the type of business you own, you may need to find a suitable premises that suits your needs. There are many factors to take into consideration when it comes to choosing a suitable business property, including the likes of:

Location

Choosing the right location for your business property can be difficult, but it is a major factor when it comes to choosing the most suitable business property. The location you decide on should be suitable for either your customers, employees or suppliers.

Whether to buy or rent

When it comes to choosing a property, you will need to think carefully about whether you wish to buy or rent the property. Renting will give you the flexibility to relocate whenever you wish to, but buying a property allows you to structurally amend the building for the best interests of your business if you find the perfect location. It also has the potential of making you money in the future, particularly if the value of the property rises when you wish to sell up.

Legal considerations

You need to understand the legal obligations that need to be adhered to with each premises. There are often regulations in place which could impact whether your particular business type is suitable to be based there.