Are you an aspiring business owner, ready to make the leap of faith and start your own small business? You’re in the right place.
Starting your own venture without the comforts of a traditional business model can be both exciting and intimidating. So, building your awareness of the realities associated with starting your own small business is important. Before you consider launching a new venture, it’s essential to research the various options, business ownership, and avenues available to you. Weighing up the pros and cons of starting a small business is the first step in making your dreams a reality.
That’s why My New Venture is here to help you understand exactly what you’re getting yourself into, and the support and guidance that’s on hand to make the process as smooth as possible.
What Does A Small Business Owner Do?
In short, as a business owner, you are responsible for the vision, direction, and success of your business.
Not only are you in charge of creating the business plan, but the implementation of marketing campaigns and daily operations. The list of responsibilities can be endless as your small business changes, adapts, and evolves. As a business owner, you will have to wear many different hats, establishing budgets and sales forecasts whilst maintaining social media channels and advertising. This may seem daunting, however, you’ll never be bored as no two days will be the same!
Set Business Strategy
Executing your business strategy with precision is essential for the continued success of your new venture. Creating an effective business strategy visualises the long-term plan for your small business to reach its goals and aspirations in your particular market.
Set these plans, actions, and goals to create a strong business strategy:
- Develop the true ethos and vision of your business
- Clearly define your competitive advantages
- List your short-term targets and long-term goals
- Ensure your decisions are fact-based
- Develop a mission statement
- Be strategic with your objectives
Establishing an effective business strategy will aid in reaching the desired, future position of your small business.
Own Business, Finance & Marketing Plans
The reality of business ownership is that for longevity and success, your small business must be profitable. This is dependent on many different factors, and the best way to track and monitor your new venture’s stability is by investing time and energy into finances and marketing plans. Reviewing your strategic plans for financial, promotional, and marketing planning can identify potential roadblocks, helping you make informed decisions for the future of your business.
Recruit & Manage Employees
Recruiting staff effectively in the first instance will do wonders for your small business in the long run. Before considering employees, it’s important to consider your reasons for recruiting staff – define the job, and develop a selection criterion. Hiring and managing employees is crucial for the success of your small business. Appointing the right person who shares your vision and passion can propel the success of your small business.
Dealing with Customers
Building rapport with your target audience is the make or break for most new businesses. Dealing with customers can be both positive and negative, that’s why we’ve listed the most important customer service skills to consider when launching your business:
- Communication skills
What Are The ‘Pros’ of Running a Small Business?
Becoming a business owner results in the total authority of every aspect of your venture as you manage and maintain the growth and stability of your small business.
Be Your Own Boss
Are you sick of repetitive day-to-day tasks with little to no reward? Starting your own business means being your own boss.
Decide how, when, and where you work and say goodbye to archaic business operations that don’t suit your style of working. Running your own business leaves the important matters solely in your hands, creating your personalised working environment, communication models, and deadlines.
Change Your Community
A huge perk of starting your own business is the chance to champion an idea for a product or service you’re passionate about.
Not only will this act as the catalyst for your motivation and determination to succeed, but help change your community. Building and growing a community of consumers gives you the power to influence and improve like-minded people who also believe in your vision.
Build Your Future
Business ownership means your work-life balance is determined by you. Complete ownership of your future can be daunting and exciting as no one but you can control your lifestyle and schedule.
This lack of restriction can fuel your productivity and launch your creativity to new levels!
What Are The ‘Cons’ of Running a Small Business?
Being a business owner presents new challenges every day, as you will be forced to discover new approaches and perspectives to your professional life. Leaving your comfort zone does come with some limitations and risks, however, with the right guidance and advice, any obstacles you may face can be overcome.
Once you have removed the structures and comfort of a typical business environment, you may experience a spike in stress levels. The risks associated with being a business owner can increase your anxiety and stress towards working.
Ultimately, you are your small business. The worry concerning employees, competition, bills, and customer problems can sometimes overshadow the joy of being responsible for the health of your business.
The financial risk of launching and growing a business can be extensive. This is a huge commitment that can impact your savings, lifestyle, and debt. Preparation is key to avoiding substantial financial loss when starting your business, as income is not guaranteed.
Risk of Failure
When deciding whether to start a small business, it is crucial to consider the different types of risk that impact you and your industry. Entrepreneurs face multiple concerns, from managing cash flow to inefficient sales funnels.
Here are some top small business risks to consider before launching your new venture:
- Founder risk: Who are the founders, do you get along, and how will things work?
- Product risk: Are there any things that could go wrong with your product, service, or software?
- Market risk: Potential losses due to market variables like prices and volatility.
- Competition risk: The actions of competitive forces preventing goals.
- Financial risk: Losing money on an investment, loan, or debt.
Choosing the Right Kind of Business For You
Consider all your options before you launch a product or service and think about whether you enjoy working alone, with a business partner, or in team settings. Critically, judging and assessing your ability and how you want to run things, will ensure the longevity and success of your small business.
Becoming a Sole Trader
As a sole trader, you run your business individually without the concern for outside opinions and visions.
Being self-employed as a sole trader means you can keep all your business’s profits, take credit for achievements, and control the future of your venture. Registering as a sole trader can also be done very quickly and free online, without the need for expert help or guidance.
Forming a Partnership
Not sure you want to commit to sole control of your business operations?
In a partnership, you and your partners divide and share responsibility and roles for your business. This includes the business’s profits, risks, and future. Before forming a partnership, it’s key to have a clear understanding of the percentage of ownership and the allocation of profits and losses in a partnership agreement, to prevent future disputes.
Setting Up a Limited Company
Is a limited company the right move for you? As a limited company, you have the option between being the sole shareholder and company director, or multiple shareholders. The key benefits of a limited company are the protection of limited liability, as your business will be an isolated entity from your personal assets.
A separate legal identity limits financial risks as this reassurance ensure you are not personally liable.
Buying a Franchise
A great way to prevent risks when starting a small business is by buying a brand and business model from a franchise owner. Not only are you more likely to immediately generate a profit, but you can access company support and guidance. Although you must pay an initial fee and royalty fees, using a proven and recognised business idea is the perfect alternative to starting a business from scratch.
How Do You Start A Business?
If you’re convinced starting a business is for you, it’s time to make your idea a reality.
Where To Get Help
At My New Venture, we’re here to help you through the intense highs and lows of running a small business, providing you with all the information needed to get started.
Expert advice to help you make better decisions is one aspect of launching your small business, with loans and grants being essential for the beginning stages of your business.
Here are the top UK small business grants to apply for:
- The Prince’s Trust Enterprise Programme
- Government apprenticeships
- Innovate UK Small Grant Programme
- Enterprise Investment Scheme
What To Do Next
Now it’s time to start implementing your market research, business plan, and funding, to create a product or service that grabs consumers’ attention. Entrepreneurial success depends on preparation and research, to strengthen your understanding of large or niche markets and target audiences.
We’re here to help and see you succeed. Now is the time to start your own business with the support, advice, and guidance from My New Venture. Find everything you need to know and more by signing up to the My New Venture learning platform today.