Things to consider before launching your small business

Becoming an entrepreneur is no easy task, especially given the economy’s current outlook. As it stands, one in ten UK small businesses fear that they might have to shut down in the coming months. On top of this, many more small business owners today expect challenges such as soaring costs, labour shortages, and dwindling consumer spending. But despite these obstacles, small business owners are still essential in helping strengthen the British economy. As such, while small businesses do have their work cut out for them, there is still much to gain for those who know how to manage tough times. That said, this article will expand more on the four considerations you need to know before starting your small business.

Image: Ketut Subiyanto

Securing capital or funding

Before anything else, significant amounts of money are required to kickstart your company. Globally, because many small businesses underestimate the need to secure funding early on, nearly 30% fail because of a lack of money. Fortunately, as our previous post on business funding has listed, there are numerous ways in which you can secure capital for your business. In the UK, apart from relying on your savings, you can either opt to take out a bank loan or enlist help from accelerators. For reference, banks such as Barclays offer up to £100,000 without you having to put your hard-earned assets on the line. Just remember that rates and payment schemes vary per bank, and you need to choose one which best suits your business needs. On the other hand, accelerators are also a viable option if you require a smaller amount of money. Apart from providing around £10,000 to several hundred thousand pounds as capital, these organisations also offer in-depth training and networking opportunities to expand your business acumen.

Having a billing system in place

As shared by a Moss survey on finance management, small businesses in the UK are increasingly adopting digital accounting tools to streamline their finances and billing transactions. Now, as an aspiring entrepreneur, accounting software is likewise a critical tool that you should utilise before starting your own business as it helps automate your bookkeeping and reduce costs in the long run. In addition, because of the British government’s initiative Making Tax Digital, you’re required to invest in digital bookkeeping. To help digitise your future records and finances, look for a billing system that can collect and track receipts and invoices, and ultimately, improve your overall spend management systems. This ensures you can monitor your business expenses adeptly and curb future spending when needed.

Setting up a payment system

According to a 2022 PYMNTS Global Digital Shopping Playbook report, UK shoppers are increasingly seeking integrated digital payment methods for a more convenient shopping experience. In response, British businesses have adopted payment solutions that can satisfy their customers and ensure a consistent cash flow. So, on that note, before opening your business, you should be able to process payments through diverse contactless solutions. One of the most accessible and convenient for small businesses is a mobile card payment machine. Whether you need to take payments around the shop floor or at the till these portable machines enable you to facilitate quicker and safer transactions. In addition, with Wi-Fi access, you can also utilise these machines to track your sales and refunds. By adopting the right payment system, you can provide consumers with their desired payment methods and promote more positive customer experiences.

Image: Melanie Deziel

Developing a social media marketing campaign

Having a sound marketing plan is essential for attracting customers to your business. With the widespread use of smartphones, however, social media marketing can enable you to reach a wider audience and consequently increase sales. Keep in mind that over 90% of Brits have smartphones today. Aside from this, a 2022 consumer study by Integral Ad Science shows how Brits aren’t only willing to engage with businesses that are on social media applications, one in five also state they’ve purchased a product or service marketed in their online news feed. As such, one marketing strategy that you should consider is generating online ads. Something you have to remember, though, is that you should align said ads with your business’ branding and voice. Apart from that, you can also publish meaningful content like infographics or short clips demonstrating product use on your social media account. By establishing a strong marketing campaign on online platforms, you can raise awareness for your business and simultaneously boost your growth potential.

Click here to discover ways you can fund your business.