Starting a Business in 2023 and Doing It Efficiently

The pandemic has come and gone, running over countless businesses regardless of industry, region, or market. Only 33% of UK firms enjoyed increased sales in the fourth quarter, according to a British Chambers of Commerce 2022 survey (https://www.britishchambers.org.uk/news/2023/01/no-signs-of-business-recovery-bcc-quarterly-economic-survey-q4-2022).

Despite this slow recovery, there remains optimism for entrepreneurial spirit, with over 4.8 million new companies registered at the end of March last year (https://www.gov.uk/government/statistics/companies-register-activities-statistical-release-2021-to-2022/companies-register-activities-2021-to-2022). The new year 2023 may usher more hopeful business owners, founders, or entrepreneurs to follow suit.

This article highlights the five essential steps that a newbie or experienced business owner can use as a guide to building that dream business efficiently.

Starting a Business in Five Steps
Starting a business is easier to fail than succeeding, despite the entrepreneur's effort and diligence. In the UK alone, 20% of companies fail in their first year (https://fundsquire.co.uk/startup-statistics/). This failure rate increases as the year peak at three, with 60% not making it.

Combining this failure rate with a host of external factors (e.g., pandemics) raises the significance of careful planning. Before starting an enterprise, reviewing your resources, observing the market's needs, and working with the right talents are critical. All of these pointers are distilled in the five steps below.

1. Do your research
When you think of what a business needs, you may be tempted to look at everything at once: buildings, products, pricing, packaging, permits, and so on. However, this line of envisioning is overwhelming.
Instead, try to pace your brainstorming sessions and dedicate time to writing them. This approach should help you see some things that you might've missed. Fill those gaps in information with research. Specifically, find:
● Information about potential customers and businesses (or competitors)
● The business structure that would match your business idea (sole trader, limited company or partnership)
The first data should help you determine if your business idea is feasible. The structure will inform you of what else you need to be able to register your business, such as permits and insurance.

2. Write a business plan
Remember the things you wrote in step one? They're coming in handy in step two. A business plan is a staple for business ventures, regardless if it's a traditional business or startup type.
This plan must contain short-term and long-term goals and funding or budget. Experts advise reading plan examples to understand its structure and language. It is also helpful to download business plan templates, use them as a foundation for your plan, and tweak them as you write.
A business plan includes an executive summary, company and product or service description, market analysis, financial projections, and management. The financial section is critical information for convincing investors or getting a bank loan. Don't forget to have your business partners review the plan.

3. Find the right investors
After a few revisions, you can share your business plan with interested investors. Besides financial investments, investors can bring in their expertise, guidance, and network. So as you meet with several investors, it's important to touch on these resources.
Companies receive funding from several sources, including family, banks (loans), venture capital, and your work network. In addition, you can also self-fund your business. However, you must be aware of the risks of full self-funding vs. adding other investors.
Investors are different and may want other things from your business. Each investor will also have their review process and duration, so be patient. After review, expect to work on the terms and conditions for funding your business.

4. Register your business
With a business plan and investments, your business idea is ready for registration. As mentioned earlier, the structure of the business will dictate the requirements; the same can be said for registering as a sole trader, limited company, or partnership.
Some entrepreneurs register their companies in other countries (like the U.S.) because the cost of starting a business is relatively low. If you want to do the same, consult with the doola (https://www.doola.com/) team to learn about its four-step process. Get your company started anywhere in the 50 states.

5. Open a business account
Finally, you can open a business account in a bank. Similarly, with investors, a bank will ask for 'proof of business' which includes:
● passport or driving licence
● phone number and email address
● registration number (from step four)
● the company's tax status
● evidence of personal and business address (e.g., credit card statement, utility bill)
● other proof (e.g., company website)
Also, the bank verifies other people who have access to the account, such as your business partner.

The Takeaways
It's 2023, and the possibilities for new businesses are teeming. Given the slow recovery from the pandemic, entrepreneurs must conduct research and write a strong business plan.
The first two steps should help them get investors, register their business, and open a business account. Following all these steps should help business owners improve their chances of a good start and sustainable business growth.

The article is published by ESBO Ltd.

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This release was published on openPR.