Start your own business

1. Start with an idea

If you’re thinking of starting a business, you first need to come up with a realistic idea you can turn into a product or service.

Find local support, including help with developing business ideas:

Protect your intellectual property

You might already have an idea for a business, or have invented something you think people will want to buy. Find out how to protect your intellectual property to make sure nobody copies it without your permission.

ü  Turn your idea into a business                                 
1.Research your market - identify potential customers. Talk to them and find out if your idea is meeting a real need.

    2. Develop and plan - test your product or service with real customers, make changes, and test it again. Keep doing this until you’re sure there’s a demand for it.

     3. Find partners and suppliers - think about who you’re going to work with to develop and sell your idea.

       4.Set up your business - work out which legal structure is right for you, and register for tax.

  ü  Get funding

When you start a business, there’ll usually be a period when you’re investing lots of time, effort and money before you start making a profit. Before you do this, it’s important to research your market to make sure your customers will really pay for your product or service.

Once you’re confident they will, explore sources of funding to help with the costs of starting up your business.

ü  Government schemes

You might be able to get help from a government-backed support scheme if you need some initial funding to test and develop your business idea.

Search for business finance using the finance finder tool to see which schemes you may be eligible for.

ü  Get a bank loan

Once you can show that there’s a market for your idea, one option for funding your start-up costs is getting a bank loan. You’ll need to be able to:

       ·  give the bank realistic cash flow forecasts

        ·  prove that you’ll be able to pay back the loan with interest

Watch a video on forecasting business finances, including sales, profit and loss, and cash flow.

The bank might require you to provide security against your loan, like your house or car, in case you don’t repay. You should think carefully about how much risk you’re willing to take on before you get a loan or give any personal guarantees.

Find business finance in your area using the British Bankers’ Association’s finance finder tool, including business angels (individuals who invest in start-up businesses), regional funds, government schemes and banks.

Selling shares

If you need more investment, you might be able to raise money to fund your growth plan by selling shares in your business. You can do this by getting friends and family to invest. However, if this isn’t enough you can look for sources of ‘equity funding’, including:

      ·‘business angels’ (wealthy individuals who invest in start-up businesses)

         · ‘venture capital’ from companies who invest large sums of money in businesses that they think will grow quickly (known as ‘private equity’ companies).You should get legal advice before selling shares in your business.

b                              by Massawe Arkadi (BAPRM 3/42605)