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How to Start a Business UK | 10 x Top Tips for Starting a Business

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Published on 26 Jul 2020 / In News & Politics

10 x Top Tips for Starting a New Business in 2020 based on my real-world experience of running multiple Ltd businesses over the past 15 years. I know how daunting setting up a business can be, so I put together this video of business tips to share business advice that I wish I had known before I started my first businesses.

Whether you are a startup or a business owner, there should be lots of business ideas and advice that will hopefully provide some motivation for your business.

These are my top 10 tips for starting a business:

1) Take it seriously - starting a new business requires time and money, allocate an hour or two per day to work on your startup and if you have no money make sure you take action now and start saving. Don't let time or money be the excuse for never starting your dream business.

2) Diversify income and focus on recurring income streams - most business models provide the opportunity to develop multiple income streams and more importantly, recurring income streams. By having multiple income streams you have some financial protection if an individual stream dries up. With recurring income streams, it is a lot easier to grow a new business when there is reliable income coming in on a regular basis.

3) Cashflow is King - many businesses in the UK are very slow to pay invoices so it is important to enforce strict payment terms. Think of ways you can incentivise your clients to pay their invoices on time so that your startup business isn't forced to close due to cashflow issues.

4) Don’t try to reinvent the wheel and be realistic about your budget - there are so many new business ideas in 2020 to choose from, however, I would recommend choosing proven business models and then finding a way of adding value to help stand out. These are much more likely to succeed than completely new ideas.

5) Build relationships - everyone you meet is a potential customer or referral, try to build relationships with as many people as possible - you will be amazed how much work can be generated via word of mouth.

6) Don’t spend too much time/money on branding/website/social media unless it is of paramount importance to your business type - although these elements are vital to some businesses, I see lots of people wasting too much time and money on these areas when starting a business when they don't actually matter that much to the industry they are in.

7) Master online marketing - with any new business it is important to know where your potential customers are. With online marketing, you can accurately target these customers, usually at much lower costs than traditional advertising methods.

8) Learn the basics of business finances - if you understand basic business finances such as corporation tax, dividends, allowable business expenses, profit and loss, and VAT and you will be in a much better position to run your business as efficiently as possible.

9) Take care of personal finances - figure our the bare minimum you need to make to be able to live so that you have an initial income goal for your business. Also, if you have a mortgage considering renewing it if it expires in the next 2 years as mortgage providers rarely lend to self-employed people with less than 2 years of accounts.

10) Have a fallback plan - whether this is savings, keeping your current job, or finding a new job, decide what your fallback plan is if the new business doesn't go as well as you would hope.

Do you have any tips for how to start a business or perhaps you are starting a business in 2020? Let me know in the comments below!

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