New statistics show that there has been an increase in the number of under 35’s starting a business following the recession. The figure of the young entrepreneur marks a change in attitude towards business as more people are seeking independent success through the start-up of their own company.
This new trend is particularly evident in young men, with 74 percent of start-ups being founded by men, and the remaining 26 percent being founded by women. The rise in young entrepreneurs also sees a change in company structuring, with an increase in the number of people starting their business alone (rather than with another founder/owner), with figures rising from 44 percent to 68 percent in recent times.
Inevitably the increase in start-ups also means a rise in competition, so what things should you consider when starting a new business:
• Research
Conducting thorough market research is crucial when starting a new business; this includes identifying your target audience and consumer patterns, as well as potential or existing competitors. Working knowledge of the industry or sector is also important when constructing a strategic marketing plan.
A key factor in a first year company’s failings is insufficient market research. Knowledge of your consumer market is paramount in constructing a successful marketing strategy as well as keeping you up to date on the latest competition.
• Business Plan
Constructing a detailed business plan is vital as it allows you to establish clear aims and objectives for the company and how you intend to achieve this. Proper planning will also keep your goals realistic, providing perspective. Your business plan should also set out a marketing strategy. Identify what marketing materials are available to you and the budget that you will have available for your marketing. Social media marketing is a cost effective way to raise public awareness whilst keeping cost at a minimum where budget is a concern.
• Company Structure & Formation
How do you want your company to function, will you assume a partnership, limited company or sole trader? Typically, registering the business as a limited liability company is the most favourable structure for new businesses, largely due to the increased protection of personal assets. However whilst this may be the most common, it may not be right for your particular set of circumstances.
• Finance
As well as an investment of time, the start-up of any business also needs to consider what finance it requires. Some people will choose to fund the business themselves, where as other will look to seek external investment. Each of these may impact the structure of the company.
• Obtaining Legal Advice
When starting a new company it is important to seek the assistance of a solicitor to discuss the best possible structure for your business, as well as what documents you require to make sure you protect your business from the outset.
Here at Farleys Solicitors our experienced business solicitors specialise in commercial matters and have a wealth of expertise in all aspects of commercial and corporate law. To speak to a specialist solicitor regarding your business or company call 0845 287 0939or alternatively please complete the online enquiry form.