Starting up your own business 2

Once you have your business plan and funding in place for your own business, it's tempting to think that much of the hard work is over, but it's important to remember that nearly half of startup firms fold within their first two years of existence. Shrewd planning, lots of elbow grease and a bit of luck are needed to ensure you don't become another statistic.

By now, you should've figured out what you're going to do and how you're going to do it. You should move quickly to sort out your stock, premises, marketing and online presence.

Sourcing your stock

If you are stocking a retail outlet and you are not making the products yourself, you will turn to a wholesaler. Shop around for the best supplier in your area and don't be afraid to ask for special deals to receive discounts.

When finding stock it's important that you keep a close eye on your finances - budget carefully for how much you need and what you expect to sell. Many entrepreneurs find that it's worthwhile to buy very little stock to start with, to gauge public response.

As well as saving you the costly headache of having an unused stockpile of unsold goods, you can cut down on products that aren't selling well. For instance, if you are opening a bar, don't go mad on that obscure Polish beer you've managed to import until you are sure it will be a hit.

Where to work

You should decide quite early on whether you are able to work from home, which will drastically cut your costs, or need premises of some sort. If you decide to rent a space, be it office, factory or garage, consider the location and cost.

A shop will need to benefit from passing trade, but high street prices are the most expensive. Similarly, you need to ensure that any office or factory space could cope with future expansion. Consider whether the space is easily-accessible, safe to work in and close to any amenities and transport links you may need.

Building a presence online

Most modern-day start-up businesses have some sort of online presence and you should consider following this trend. Online sales growth has outstripped that of traditional shops for the last three years, with consumers increasingly confident of buying products and services via a website.

Even if you don't sell anything online, a website is a superb way of increasing awareness of your business. It instantly transforms your firm from a small, localised service into something customers from Plymouth to Perth can access with just a click of a mouse. You may just be giving directions or a phone number out on your website, but a well-designed, easily found page can draw in consumers or clients instantly.

Consider employing a web developer to put together an attractive website. It's now possible to find a developer quite cheaply, and the benefits to your profile should make the outlay worthwhile. If you are selling online, try using off-the-shelf ecommerce packages, such as Actinic, that allow you to build your own web pages dedicated to sales.

Promote your site using a search engine such as Google by purchasing ad words. This means that when customers type in something, such as consultants in Liverpool, for example, your business will be prominently listed.

Websites are an excellent way of showcasing your business, but for effective self-promotion you should consider formulating a PR and marketing plan. You could have the best small firm in the world but that will count for little if no-one knows about it.

Getting the word out

Spreading the word about your business can range from an entry in the Yellow Pages to radio advertising. It's important that you employ a wide range of marketing mediums and target them effectively. Identify who your potential customers are and strive to contact them.

Use email and telephone marketing to increase awareness and consider printing posters and flyers for passers-by. Step into the shoes of your would-be clients and think about how and when they can be reached.

It's vital that you measure the response of your advertising to ensure that you are not throwing your money away - with a tight budget it's important to be hitting your targets every time.

Conduct some market research to find out awareness levels of your business amongst the public and survey current customers to see how their experiences could be improved. Once you have created a relationship with customers, it's important not to lose them - don't neglect 'regulars' in the chase for new business.

Employing staff

In the early days of your business, it's wise to do as much as possible by yourself to cut costs. This may involve you working from home close to 24 hours a day, but that is hard slog that's required to get the business off the ground. You will be a one man or woman marketing, advertising, HR, IT and health and safety department, as well as being a managing director, company secretary and accountant.

However, the time will probably come, unless you decide to remain self-employed, that you will want to take on staff. Consider why you need someone and what exactly role they will take on - it's imperative that a new worker will 'add value' to your business, rather than picking up a nice wage for making your working life a little less hectic.

Recruiting is one of the most important decisions you will make, and also one which is most bound up in red tape. When you take someone on, there are a myriad of laws to obey, including anti-discrimination legislation, the minimum wage, maternity and paternity leave and National Insurance payments. Make sure you are fully versed before you plunge into the job market.

Newspaper adverts are the most common, and cheapest, way to advertise a position going, but if your budget can stretch to it, it's worth going to an employment agency to help with recruitment. They can whittle down candidates and ensure that you don't have to waste time dealing with those who are clearly unsuitable for the job.

When it comes to the interview, have a checklist of the things you are looking for in the candidate. Try and evaluate their basic skills - are they literate and a good communicator? Are they enthusiastic and willing to learn? Do they have experience that you lack in certain areas? Will you be able to work with them intensively?

Finance Revolution

With all the considerations you will make when building on the foundations of your business, whether it's premises, recruiting or advertising, it's important that they are supported by careful finance management.

Make sure you keep on top of the books and don't overspend on anything, Get the best value from whatever you are purchasing and ensure you don't overstretch yourself, and the business, by taking on too much too soon.

Saying that, some of the best decisions entrepreneurs make are instinctive, with gut feelings often turning out to be business masterstrokes. Keep an eye out for opportunities or gaps in the market and attempt to exploit them. Do things differently and don't be afraid to tell friends and family of your more strange ideas - they could end up driving your business forward.

But while it's important to be inventive, make sure this is underpinned by common sense and reality. Take calculated risks, not crazy ones. Think through ideas properly before putting them into action.

Some people become millionaire entrepreneurs overnight, but many more take years of hard work to get there. Don't be afraid to become part of the latter group.

For further advice, news and features on starting up, go to www.startups.co.uk