What is the first thing that a successful start-up requires? It is an idea. Indeed, a lot more is required down the journey, but everything begins with an idea. UK start-up companies are founded on innovative ideas, strong and intuitive notions that might shake things in an industry. Many times they don’t work, but when they do, wonders happen. And the gains can be indescribable.
At present, there are over six million small and mid-sized companies operating in the UK. Beginning something new is exciting and enthusiastic but there are a lot of factors to consider. There is an emergence of a lot of fintech firms, venture capital funding companies, and start-up tech companies in the UK. No matter, if you are planning to start your company in the UK and Europe in technology, or in health services it is important to consider different key aspects to make your idea a hit. A few of the areas where the insight and value can be provided are as below.
- The journey putting ideas to actions – It is the pre-business planning stage. The research needs to be done around the idea, service or product offering, competitors, pricing, etc. How you are different from others? What added value you are providing to consumers? Set your target market. Putting everything in this way will not only add insight to your plans but will shape the future of your start-up in the UK.
- The business plan – The business plan describes the objectives of the company, about directors, shareholders, etc. It is a must to do detailed market analysis as it will help in figuring the target market and achieving clarity. It will cover the competitor analysis as well as it will help in figuring the pros and cons of them, and how you can beat them. It will lead to thinking of a go-to-sell market strategy. It is a must to think of the platforms which you are going to use for promotion and selling. The operational business plan will cover the facts – how the business will operate, when it will start, who will be doing what, etc. It is vital to analyse the success obstacles and ramify both operational and financial complications.
- Tax and Legal prerequisites – On the basis of the financial model, it is required to decide which type of legal entity your business has. Is it a limited company, or a partnership firm, or a sole trader company, etc. Accordingly, the taxes will be analysed impacting your company.
- Financial Models – The most important financial models any London start-ups need to consider is a balance sheet, a profit and loss account, and the cash flow forecast. As the new company data plan, you might need to submit only a one year cashflow and fund statements describing how you are going to support the business and carry on the journey further. For more established companies in the UK, multi-year forecasts are needed. To do this, a full analysis of your sales, revenues and total costs needs to be done. In the business plan an estimate in terms of pricing structure and how much you can sell require to be mentioned. Furthermore, the detailed cost analysis is required covering all the direct costs and indirect expenses. The costs include everything from setting up a website to technology and equipment used, to marketing, to training, using property, to transportation and rental expenses, and… to paying taxes. Every company’s situation will incur its own list of cash implications and costs. All that is required from your end is to think of everything thoroughly and plan accordingly.
- Funding – It is indeed a significant aspect to do consider. It is important to think of the amount that you require to start your company, the funding that you need, how much you can invest and how much you will need to raise from external vendors and third parties. Depending on financial needs, it is even possible to take loans from banks, financial institutes, or investors. There are even FinTech Start-ups in the Uk that specialise in seed and crowdfunding to make your big idea – a hit!
Have you gone through all the above-mentioned pointers that can assist to built a platform and establish yourself as a one of the UK’s top start-ups? The work might seem a bit mind-boggling and daunting, but it is essential to prepare and plan everything before executing anything. It is worth noting that in any start-up, be it dealing in Babylon health, or artificial intelligence, or financial services, or money transfers or anything else, cash is the top priority. You can have great plans, well thought out charts, long term profit and loss projections, but without short-term and long-term cash in hand, everything is irrelevant. This is why funding is fundamentalto survive and make any start-up a success. The investors see the cashflows , listen to your idea, and make sure to invest only if they feel you will survive in the market in the long run.
Indeed, the statistics do not lie. Most of the UK start-up companies fail within the first two years of incorporation. The reasons for failure are usually not economic downfall, most of them fail because of one of the following reasons:
1. Bad management decisions
2. Lack of initiatives and the right preparation
3. Incapability to see the problems
4. Inability to face challenges
5. Inability to respond and look for solutions
Thus, make sure to focus on each aspect carefully and accordingly when setting up your company. An idea can come to you anytime, anywhere. Maybe it will come when you are in the bathroom, in the park or doing something when you are thinking else completely. It is not necessary having a lightning bolt moment every time to get the idea.
Everyone gets inspired by something and many people have always wanted to start their own business because of something that has motivated them. True right? The best possible start can be by getting the right advice from the like-minded peers in the industry, looking for discussions, and get the big break to enter the world of start-ups. Do you know, who can assist you in getting in touch with the right people and making the relevant connections? Keep on reading and you will be surprised to know:
1. Companies House – In the UK, for each start-up, it is a must to register the incorporation at this legal governmental body. It is here, available for all as a matter of public record. Using the company name, or company number, anyone can look for a UK start-ups.
2. Data Gardener – It is the reliable and UKs top business listing platform, to dig in analytics related to companies and directors. The platform helps you find the best UK start-ups and established companies in a single click. Each detail of the business, be it the profile, shareholders information, directors’ information, financial information, can be accessed here. So, feel free to get involved with finding the right prospect and marketing lists, connect with whom you like, and make your business grow.
There is a famous saying, every crisis brings an opportunity, ven at this tough time when people are facing the unseen battle of pandemic troubling businesses worldwide. UK entrepreneurs are taking the opportunity as a blessing. During the lockdown, many entrepreneurs have started new businesses helping customers in the best way possible. UK and Europe nations are known for their transparency, working culture, new emerging start-ups and a lot more. If you have an idea , as well as the right strategy and focus, things can work out from even the behind doors. To have a successful start-up, it is a must to have opportunistic and entrepreneurial thinking all the time. The passion, dedication and enthusiasm are the key to execute a successful business, do not fall for failure, and always strive to expand and grow. In short, pay attention to the relevant material, do your research properly, connect with the right people and companies, and always look for the bright side. The right tactics and planning will definitely keep your idea and start up growing and developing. All the very best for the start of your new venture! May it come among one of the top-notch European start-ups and we hope it’s an inspiration for others.