How to start a business from scratch

If you’ve been thinking about launching your own venture – whether a side hustle or a full-time pursuit – good on you. It takes courage, drive and an entrepreneurial spirit to become a business owner. 

But knowing how to start a business from scratch can be challenging for anyone.

Lockdown has been tough on many of us but many have turned adversity into an advantage. New circumstances have fostered creativity and resourcefulness with a raft of new and innovative businesses appearing across the United Kingdom.

However, a report from the BBC claimed that women are half as likely as men to start a business in the UK. There are several reasons for this disparity, with access to coaching and capital being among the most prevalent. Self doubt is often cited as the barrier that resonates with the greatest number of female entrepreneurs. So how does one shake this off and get started?

HOW TO START A BUSINESS AND BECOME A SUCCESSFUL ENTREPRENEUR

Having faith in your own abilities is paramount to getting your business off the ground. If you struggle with imposter syndrome or self confidence, begin by looking to others for inspiration. TED Talks, female business mentorship resources, books by successful businesswomen and even conversations with close friends can help to reframe the way you view your own abilities.

START A BUSINESS TODAY, NOT TOMORROW

Self doubt can often lead to larger stumbling blocks. Remember that successful businesses go through many iterations and are always being optimised and developed. Your idea doesn’t have to be perfect, just as long as you have one. Don’t spend too long worrying about perfection – no one begins as an expert. Just start and learn as you go.

WRITE A BUSINESS PLAN

If you want to know how to start a business, the first practical step is to create a business plan. If this is something you’ve never done before, you can download our free template to help you get started. Before you get creative, it’s essential to lay firm foundations and adhere to best practice.

ESTABLISH YOUR COSTS FIRST

Once you have a business plan, consider your costs. What are your start up costs? Will you need funding? Which costing areas are you unsure about? Consider how your business plan intersects with your finances and where you might need mentorship, investment, support and advice.

Then get ahead of your cashflow and your budget. Having these financial plans in place before you hit the ground running is one of the most important touchstones of starting your own business.

DECIDE ON YOUR BUSINESS STRUCTURE

Deciding whether you’d should operate as a Sole Trader or a Limited Company is another essential step. If you’re looking into how to start a business from scratch, researching the benefits of both types of company structure will help you to get the most out of your business. We can of course help guide you through the pros and cons during one of our free consultations. 

DECIDE ON YOUR PROCESSES

You’ll also need to make a choice about how to track your income and expenses. Operating a business means tracking and transparency is essential so you should be considering how you’ll ensure this. Many people, especially those familiar with the financial aspect of running a business, choose to use accounting software and apps. For a greater level of support lots of entrepreneurs choose to work directly with an accountant or accountancy firm, like us! 

AVOID COMMON MISTAKES

Starting a company can be complex and confusing at times. No one’s pretending it’s easy, but there are plenty of ways to ensure you’re operating in the best way possible – for you and for your customers. For advice on common mistakes and how to avoid them explore our checklist.

START SELLING AND STAY POSITIVE

If you’re ready to start selling, your business plan and processes are watertight and you’re prepared to enter the market, familiarise yourself with best practices for invoicing. Keep your records organised and check in with professionals in your network if you’re unsure of anything.

Lastly, if you’re wondering how to start a business, positivity is key. It’s possible that you’ll weather all kinds of storms – recent events have shown us that we should be prepared for anything – so build a strong support network, practice self belief and engage in positive and optimistic thinking daily.