Completing the company formation process is the easy part. Registering your new company online with Companies House takes less than 3 hours when using a formation agent such as Company Formations 247. But once your company is registered and ready to trade, the hard work really starts. Many new companies fail in the first year you due to lack of support and experience. Here we have provided some key tips to help you succeed.
Have a clear proposition for your business
What are you offering to your customers? What makes you different and better value? Both questions you may have heard before but are key factors to success. Having differentiation and a strong value proposition are important especially in such a competitive marketplace. Long term success will greatly depend on what makes your company different from the rest and what value you are offering to your customers.
Get your pitch right
Investment is what your business will need to be successful. In the early stages when your company is about to start, securing initial investment for new start ups can be difficult. Pitching will be an important element. Dragons Den for example has seen some of the best and some of the worst pitches and the actual process involved will be very similar. You will have just 5 minutes to make that first impression with investors. It is important to ensure that your business idea is simple especially when looking for a commitment from investors. Focus on showing what you are going to do with the money invested rather than focussing on how much you need. The ability to strengthen your company image through various milestones such as gaining accreditations and awards, securing new clients and improving your management team will be important milestones for your business.
Prioritising your time and focus effectively
There are many decisions that business owners need to make in the early stages. These decisions can have a major affect on your time, focus and of course your capital and will ultimately affect your business in the long term. It is important to focus where your efforts and time are best spent in the early stages of starting a new company. Hedging your capital on a bet to increase your sales may not always be the best decision. In many cases it is best to step back and consider the opportunity and the costs involved. Prioritising your time in the right way will be essential when just starting your new company. Many entrepreneurs’ place bets with their finances such as investing in road shows or being a leading sponsor at a show, investing is sales leads and so on to gain exposure and new business. This can of course be very costly and with no guarantee of return on investment. It will always be a gamble. Having a plan in place can outline your priorities, the essentials and how much of a gamble certain decisions represent. Having this in place will then present a better chance for prioritising business growth effectively.
Have a business mentor
It is now common practice for many new business owners to have a mentor. A business mentor can help provide useful advice and support for your new company. The role typically involves providing networking opportunities, offering technical advice and support and generating business relationships. Having a clear understanding of what the partnership will involve in terms of expectations and targets will help get the most from the partnership. Remember a mentor will have undergone the same challenges and hurdles that you are likely to face so their help could invaluable.