Hacks. There are hacks for everything these days, from folding clothes, to saving time, and yes, for building your own business.
We’ve broken down 25 hot tips that every business owner needs to know to make growing your empire that bit faster and easier.
Sure, you could re-invent the wheel and work it all out yourself, but there’s no harm standing on the shoulders of giants and adopting some tried and tested techniques that can make your business life a little more zen like.
Let’s get into it.
1. Know Your Customers
As a new business owner in the UK, it’s important to understand the problems your clients need solving. This allows you to create a unique selling point (USP) and have an elevator pitch on hand when opportunities arise.
Getting to know your customers and what they want or need from your business doesn’t need to cost the earth – you can use cheap or free tools, or draw on personal experience.
By understanding your customer base, you’re setting yourself up for success and laying the foundations for a strong marketing strategy.
If you can’t explain how your business helps it’s customers in under 30 seconds, revisit this.
Understand Your Target Market and How to Reach Them
When you’re setting up a new business, it’s essential to have a clear idea of your target market and how to reach them.
Market research can be a great help with this, as it can give you insights into who your potential customers are, what they’re looking for, and how best to reach them.
There are a variety of different channels you can use to reach your target market, each with its own advantages and disadvantages.
Different Routes to Market
For example, Google Ads can be a great way to reach potential customers who are actively searching for your products or services. However, it can be expensive, and you may not always reach your ideal customer.
SEO, on the other hand, can be cheaper and more targeted, but it takes longer to see results.
Facebook advertising is another option that can be effective, but it’s important to make sure you’re targeting the right people.
And business networking can be a great way to connect with potential customers, but it requires time and effort.
Spending Money Carefully
The most important thing is to understand the different routes to market and which one will work best for your new business.
With careful planning and execution, you can make sure you’re reaching your target market in the most effective way possible.
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2. Look After Your Finances and Your Finances Will Look After You
Setting up a new business is an exciting time. There are so many things to think about and organise, from the products or services you’re going to offer, to finding the perfect premises and recruiting a great team.
But one of the most important things to get right from the outset is your finances.
Cash flow, business forecasting, cloud accounting software – it can all seem a bit overwhelming. But thinking about it early will save you time and headaches later on.
We’ll give you some top tips on how to plan your finances carefully and make sure you have enough money to cover the costs of setting up and running your business.
Cash Flow
One of the first things you need to get to grips with when planning your business finances is cash flow.
This is simply a measure of how much money is coming in and going out of your business on a day-to-day basis.
It’s important to keep on top of your cash flow so that you can see when you might need to inject some more money into the business – for example, if you’re planning on expanding or taking on new members of staff.
Business Forecasting
Another key element of financial planning for your new business is forecasting.
This involves predicting how much money you think your business will bring in (revenue) and spend (expenses) over a certain period of time – usually monthly or annually.
Forecasting can be helpful in giving you a better understanding of your cash flow and spotting any potential financial problems that might arise in the future.
It’s also a useful tool for pitching for investment or loans from banks or other financial institutions.
Cloud Accounting Software
These days, there are lots of different accounting software packages available that can make it easier for small businesses to keep on top of their finances.
If you’re not sure which one is right for you, have a look at our blog post on the best cloud accounting software for small businesses.
Once you’ve got your accounting software set up, make sure you use it regularly to input all incoming and outgoing payments so that you can keep track of your cash flow and expenses.
Don’t Over Commit on Expenses
When you’re just starting out, it can be tempting to splash out on expensive office space or the latest technology for your team. But it’s important not to over commit on expenses – otherwise you could find yourself in financial difficulty further down the line.
Instead, try and stick to essential expenditure only in the early days, and only invest in non-essential items once your business is established and generating enough income to cover the costs.
Planning and Delaying Spending Decisions
Careful planning can be crucial when it comes to managing your finances as a new business owner. Wherever possible, try and delay spending decisions until you’ve had time to consider all the options and compare prices from different suppliers. This will help ensure that you get the best possible deals for your business – which could save you hundreds or even thousands of pounds in the long run!
Finding a Good Accountant to Help With Financial Planning
One final tip is to seek professional advice from an accountant or financial advisor when setting up your new business – they will be able to offer expert guidance on everything from tax implications to raising finance. We can put you in touch with a qualified accountant in your local area who can help with all aspects of financial planning for your new business venture.
3. Stay on the Right Side of the Law!
As a new business owner, it is important to be aware of your legal obligations in the UK. Ignorance is no defence!
We’ll cover some of the key areas you need to be aware of, including HMRC, Companies House, VAT, and other taxes. We will also touch on health and safety in the UK and employment law.
HMRC
One of your key obligations as a new business owner in the UK is to register with HMRC.
HMRC is responsible for collecting taxes and enforcing tax laws in the UK.
You will need to register for Self Assessment, which is a system for declaring and paying taxes on your income. You will also need to register for VAT if your business has a turnover of more than £85,000 per year.
Companies House
Another important obligation for new business owners in the UK is to register with Companies House.
Companies House is responsible for incorporating and dissolving limited companies, examining and storing company information delivered under the Companies Act, and regulating takeovers.
VAT
Value-Added Tax (VAT) is a consumption tax that is levied on goods and services sold in the UK. If your business has a turnover of more than £85,000 per year, you will need to register for VAT.
Accounting Filing Deadlines
As a new business owner in the UK, you are also required to file annual accounts with Companies House. The deadline for filing your first set of accounts is 21 months after the date of incorporation.
It’s best to do it quicker though if you can.
Filing your company accounts helps to build a credit profile for your business, which can useful for everything from raising finance to getting mobile phone contracts.
It’s also better to not leave your accounts to the last minute as the earlier you do it, the more time you’ll have to plan your taxes!
Other Taxes
In addition to Self Assessment and VAT, there are other taxes that you may be required to pay as a new business owner in the UK. Check with an accountant for greater clarity.
Health and Safety in the UK
As a new business owner in the UK, you are also responsible for ensuring that your workplace meets health and safety standards. This includes conducting risk assessments and having proper health and safety policies in place.
Employment Law
If you plan on hiring employees in the UK, it is important to be aware of employment law. This includes things like minimum wage rates, working hours, holiday entitlement, sick pay, maternity/paternity leave, and dismissal procedures.
Legal Requirements - Final Thoughts
As a new business owner in the UK, it is important to be aware of your legal obligations. This includes registering with HMRC and Companies House, as well as filing annual accounts with Companies House. You may also be required to pay other taxes such as payroll tax, corporation tax, or self-employment tax.
In addition, you are responsible for ensuring that your workplace meets health and safety standards and that you are compliant with employment law if you plan on hiring employees. It is easier to get things done right at the start rather than waiting for problems to build up.
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4. Deliver World Beating Service
In today’s business world, the customer is king (or queen). We’re almost 99.9% certain you won’t be the only person doing what you do in your market place, which means your customers have a choice about who they spend their money with.
That’s why it’s so important for small businesses to focus on delivering a world-class customer service experience.
Competition is a good thing. It improves standards, lowers prices and is generally a source for good.
Customer service is one way you can separate yourself from the crowd and create unique selling points that are robust even against much larger and better resourced businesses.
Here are six reasons why great customer service is essential for small businesses:
Smaller Can Be Bigger When It Comes to Service
Small businesses have a big advantage when it comes to customer service.
They can be nimble and responsive in a way that large businesses simply can’t.
When something goes wrong, a small business can quickly put things right in a way that will make the customer happy. And when things go right, a small business can take the time to really celebrate its successes with its customers.
That personal touch is something that large businesses can’t always replicate as they become more reliant on processes, rather than personal knowledge.
Great Service Leads to Social Proof
Great customer service leads to social proof – think Trust Pilot and google reviews.
When your customers are happy, they’ll leave positive reviews. This is something you can actively encourage them to do.
These reviews act as social proof for your business, showing potential new customers that you’re a company they can trust. This really helps when it comes to winning new business.
Customer Service, Retention and Growth
Customer service isn’t just about winning new customers – it’s also about retaining the ones you already have. If your customers are happy with your service, they’re much more likely to stick around (and spend more money with you).
Happy customers also tend to tell their friends and family about your business, which can help you to grow your customer base organically. So, great customer service is essential for both retention and growth.
Reputation matters a lot and delivering great service means customers will likely advocate for you with potential new clients.
In today’s digital world, reputation matters more than ever before.
Customers are quick to leave negative reviews online if they’re unhappy with your service.
But if you deliver great service, they’ll be just as quick to sing your praises to their friends and family (and potential new customers). So, don’t underestimate the power of word-of-mouth marketing – it really can make or break your business.
Outstanding Service Needn’t Cost the Earth
You don’t need to spend a fortune on fancy software or hire a team of dedicated customer service staff to deliver outstanding service.
Often, all it takes is a CRM system and some well-thought-through processes.
Keep things simple and focused on the needs of your customers, and you’ll be well on your way to providing them with an exceptional experience.
Own your mistakes
Ask your customers to judge you on your response to mistakes, and whether they happen again. Not on the mistake itself.
Mistakes happen – that’s inevitable in any business. What matters is how you handle those mistakes when they do occur.
Be quick to own up to them and put things right, and your customers will judge you not on the mistake itself but on your response to it.
Show that you’re committed to delivering excellent service even when things go wrong, and you’ll win the respect (and loyalty) of your customers.
5. Use Automation to Boost Productivity
If you’re a small business owner, chances are you’re always looking for ways to save time and increase productivity.
After all, time is one of the most valuable resources available to any business, and finding ways to eliminate repetitive tasks can free up hours every week.
One of the most effective ways to do this is through automation.
By automating certain business processes, you can save yourself a significant amount of time and effort.
Have you thought about the advantages of automation? There are plenty of examples of business processes that can be automated.
Advantages of Automation
There are many advantages to automation, but here are a few of the most noteworthy:
– Eliminate repetitive tasks, freeing up your time for more important work.
– Improve communication between you and your customers or clients.
– Automating certain business processes can help improve your overall efficiency and productivity.
– Automation can also help you keep better track of your finances and customers or clients.
Automation Examples
There’s plenty you can automate within your business, as no matter what line of work you’re in, certain things hold true for everyone. Money will be involved, you’ll have customers and somehow you’ll need to be paid.
Here’s a few things you can automate:
- Bookkeeping tasks such as invoicing and tracking expenses
- Email communication
- Marketing efforts such as email campaigns
- Social media automation, publishing content and building networks
- CRM (customer relationship management) packages
- Payroll
Automation Warnings
While there are many benefits to automation, it’s important to note that it does take a bit of time investment to set up automations in your business.
However, once you’ve taken care of the initial set-up, the automations will run seamlessly in the background, freeing up your valuable time for other tasks.
Just remember to check in the early days that things are running as you’d hope. The last thing you want to discover in that you’re sending 27 emails an hour to your customers.
6. Know Your Competitors
As a small business owner, it’s important to know your competitors inside out. Why? Because you don’t have a monopoly on good ideas.
By studying your competitors, you might glean ideas on pricing strategy, marketing or brand positioning.
Additionally, understanding their strengths and weaknesses can help you structure your pitch and sales approach accordingly. Here are a few tips on how to get to know your competition.
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Check Out Their Websites and Social Media Accounts
If they are a more established business than you, looking at their website and social media accounts can provide some great insights about what works (and what doesn’t).
Take note of things like their tone of voice, the kind of content they produce, how often they post and the overall feel of their brand. All of this will give you some valuable clues about how to position your own business.
Use SEO Tools
There are lots of great SEO tools out there (some of which are free) that can give you an idea about the sorts of terms their websites are ranking for. This can be really useful in informing your own SEO strategy. You can work out the sorts of keywords your competitors are ranking for, which can help you direct your own resources.
Look at Their Pricing Strategies
Understanding your competitor’s pricing strategies can help inform whether you’re charging too much or too little. If you’re way out of line with the competition, it could be a sign that you need to adjust your prices.
Keep Your Enemies Close...
As a small business owner, it pays to know your competitors well. By taking the time to understand their business, you can glean valuable insights that will help inform your own strategy.
From there, it’s just a matter of putting those insights into action and staying one step ahead of the competition!
Wrap Up
So there you have it. Focus on these areas and you’ll be well on your way to getting ahead with your business. If you’re struggling for time to stay on top of these things, you can always find an accountant or bookkeeper through us to take away the financial management of the business so you can focus on sales.