Originally published by James Caan CBE on LinkedIn: My Startup Checklist
The figures speak for themselves: more than one in three would-be entrepreneurs thinks about starting a business every day, but 78% say they are afraid they’ll fail.
Starting up takes every bit of drive and determination to make it happen. I always say that success is a journey, not a destination and failure .....well, that's just part of the journey. If you’re planning to start a business, there a few things you should know.
The officials
It’s only natural to want to devote your time to growing your customer base or getting your product out into the market. But if you don’t get your legal, accounting and tax ducks in a row, they can end up taking an inordinate amount of time and sapping your cash, just when you need it most.
Take time to choose the legal entity you will operate your business through.
Understand the personal legal liability aspects and the filing and tax requirements of your company vehicle.
The annual tax return has been abolished, hurrah! Spend some of the saved time thinking about whether you need to register for VAT. Take care not to miss registration or filing deadlines and payment dates. Penalties can quickly mount up into unexpected and damaging cash outflows.
If you are employing staff, understand your legal responsibilities as an employer and any PAYE requirements. While these can be a little tedious, they are critical to running and growing a successful business.
Research
Research is your best friend. It is essential you spend a considerable time sizing up your competition, establishing your unique selling proposition (USP) and defining your target audience.
Ask yourself: who are your competitors? How successful are they? The more you know, the better position you’ll be in. Understanding what your competitors do well will give you a good idea about what your customers are looking for in a service or product.
Lots of aspiring entrepreneurs I meet are obsessed with inventing something new. Instead, why not take something and make it better.
To do this, you need to establish your USP. List your business attributes and evaluate how well you meet those needs on a scale of one to five.
Remember, just because someone currently has a position in a market doesn’t mean they’re delivering on it. If you can do it better, make it known. Perhaps excellent customer service is your USP – you place particular pride on engaging with your customers. Whatever it is, be sure to communicate it through all your portals.
Think about your target audience and develop the business around them. Consulting your customers will make them feel they have a voice, will breed loyalty and, if you’re lucky, will increase the likelihood of them recommending you to others.