Starting a business
Starting a business can be so exciting. You have a product or service that you want to get to work on and if done well, it could change your fortunes.
Working with start ups all the time, we have some insights into things you can do early to prepare for success. Read on for the things we think you need to do to get started.
Identify the need
First you need to do some research to find out if there is a need for what you want to offer. Get behind your computer and find out what comparable product or services there are. You will soon find out if it is a saturated market or if there is a niche there waiting for you.
Scope the competition
Now you need to understand what your competition are doing and how you plan on doing it differently. You need to have a clear point of difference and sing it from the rooftops. It is important that you are very clear about what you do and who you do it for, that way your ideal client or customer will find you easily.
Review the finances
Lastly, you want to know if you can make money with this idea. There will be a maximum amount your customer is willing to pay for what you offer, reverse engineer this to see what it will cost you to provide your offer and you will see if there is any money to be made.
Once you undertake those three things, you will then know if you have a business and then it’s the right time to talk about funding.
Three things you need to be successful for funding your start up
- You need to showcase the skills and experience that you will bring for the benefit of your new business. This may be qualifications, past employment, work experience etc. There will be a strong focus on you when the lender assesses you for a loan. The likelihood that you will make the business a success is gauged by your related experience, so don’t be shy. Dig through your CV and let us know all the strengths you have that will propel your business.
- You need to be able to cover your personal expenses as well as loan repayments while the business gets up and running. This is usually acceptable in the form of a spouse earning an income outside of the business. If your business has a contract for upcoming work, or sometimes franchises offer guaranteed minimum income, then that will help too.
- You need to have some skin in the game. Lenders are reluctant to give 100% funding to start a new project. It puts all the financial risk on them. Take the time to accumulate some money of your own that you can use toward your business goals. This shows strong character and lines you up as a desirable candidate for a loan.
If you want to discuss your personal situation in more detail, call one of our lending specialists on 0800 774 622 or apply today.