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How to become an entrepreneur and start your own business venture

Starting your own business can be an exciting and rewarding journey.

| 6 min read

Whether you’re an aspiring entrepreneur or have a brilliant idea you want to bring to life, here are essential steps to guide you through the process.

The process to become an entrepreneur and set up your own business isn’t etched in stone. There’s no handbook or blueprint to follow that will guarantee future success – it’s the risk you take as an entrepreneur.

That said, there are some key factors to consider before making the leap into entrepreneurship.

What are the steps to become a successful entrepreneur?

1. Develop your business idea and market research

        All businesses start with a basic idea or concept. What is that idea? What problem does it solve? Why do you want to start this business?

        It’s important to ensure your business idea aligns with your passion, skills, and interests. The entrepreneurial journey is full of ups and downs with times of little to no financial reward, so a genuine passion for what you do is essential to remain disciplined for the long term.

        Market research and identifying product market fit is another key part of the initial idealisation phase. Thousands of companies are created each year, so you’ll need to understand your target audience, competitors, and industry trends to see if there’s a gap in the market for your business. What’s your unique selling point or niche?

        Read more: Seven ways to know if your business idea is viable

        2. Build your network

          As an entrepreneur, building a ‘circle of trust’ lined with highly skilled and like-minded individuals such as accountants, lawyers, suppliers and business leaders is essential. They are your support network that you can trust and get expert advice if and when you need it.

          Sir Richard Branson, one of the UK’s most successful entrepreneurs, with a net worth around £3bn, only discovered the difference between ‘gross’ and ‘net’ profit in his fifties after an accountant explained it to him. This highlights the fact that you don’t need to be an expert in every area of business, but you need build a circle of trust with experts that you trust.

          3. Create a business plan

              The next step is to write your business plan that sets out what you want to achieve with your business. Outline your business goals, target market, products/services, marketing strategy, financial projections, and operational details.

              You’ll also want to try estimating startup costs, revenue, and expenses. This is a crucial part of the process if you’re looking to attract funding from investors and lenders

              4. Explore business funding options

                There are several ways to fund your business venture, including:

                • Self-funding: involves using personal savings or assets to start your business. This is the preferred option, as it means you can be the sole founder and have complete control and ownership of the company.
                • Seek investors: explore angel investors, venture capital, enterprise investment schemes, or crowdfunding platforms to secure funding to get your business off the ground. This can be particularly important for businesses that require high initial upfront cost. It does, however, mean you might need to part with part or full ownership of the business in return for capital.
                • Business loans: borrowing money from banks or government initiatives can be another option for starting your own business. This can be a more expensive option though, as borrowing rates have risen to their highest level in over a decade. Loans are typically repayable monthly from the date of the loan agreements, so you’ll need to make sure you’ve got money coming in to afford the repayments.

                  When it comes to funding, it can be useful to get professional financial advice that is specifically tailored to business owners. An expert can help you ensure your financial plan is in order and provide insights to help you going forward.

                  5. Register your business

                  How you set up your business depends on what sort of work you do. It can also affect the way you pay tax and get funding. At this stage, it would be advised to speak to an accountant to explore the most tax efficient options.

                  • Sole trader (self-employed): If you’re planning on being a one-man band, this could be your preferred option. It’s the simplest to set up, but you’ll have to take full personal liability for any debt. To set up as a sole trader, you must register for Self-Assessment. You’ll also need to keep a record of your earnings and expenses to complete your tax return each year.
                  • Limited company: If you’re looking to build a team of employees, you’ll need to set your business up as a limited company. There are tax benefits when compared to a sole trader as Corporation Tax is at a lower rate than Income Tax. The business’s finances will be kept separate from your personal finances, but there are more stringent reporting requirements, and your financial accounts will be made public by Companies House. Starting your own company in the UK is straight-forward and cheap to do via Companies House. Applications can be processed within 24 hours and cost as little as £12.
                  • Partnership: in a partnership, you and your partner(s) personally share responsibility for your business. This includes any losses your business makes and bills for things you buy for your business, like stock or equipment. Partners share the business’s profits, and each partner pays tax on their share.

                  6. Build your go-to-market strategy

                  Once you have defined your product or service and registered your business, you’ll need to plan how to bring your business venture to market. A detailed go-to-market strategy should include the following:

                  • Brand positioning
                  • Distribution channels e.g. website, social media, email
                  • Target markets and audience
                  • Marketing and sales plan
                  • Key performance indicators (KPIs)

                  Working with entrepreneurs and business owners

                  At Charles Stanley, we are committed to supporting entrepreneurs through the good times and bad. We offer a comprehensive suite of services designed to meet the needs of entrepreneurs at every stage of their journey. Our holistic approach ensures personalised financial planning and bespoke investment strategies tailored to long-term success and financial security.

                  Find out more about working with us

                  Nothing on this website should be construed as personal advice based on your circumstances. No news or research item is a personal recommendation to deal.

                  How to become an entrepreneur and start your own business venture

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