The business side of your micro business – how to be profitable in year one!
Fact – Any business that makes money in the first year, after taking into account their setup costs, is doing very well. Unfortunately, there is no secret recipe for first year success but let’s have a look at how a new business might achieve it.
There are several things to consider before you even start your business and one of the most important is to develop a good business plan and to answer the question – do I have a market for my product or services?
What is a business plan?
Start-up loans uk has a good overview: https://www.startuploans.co.uk/business-advice/how-to-write-a-business-plan/
And if you need a more detailed guide try our free learning guides: our free courses
An important part of the business plan is a financial forecast.
You can find out how to develop a financial forecast on Start-Up Loans UK: https://www.startuploans.co.uk/cash-flow-forecast-template/
It is important to make a realistic assumption of:
- The costs of setting up the business, tools, vehicle and the like
- How much you need to earn to maintain your, and your family’s, way of life;
- How much you can sell your services for to match or better the competition;
- Most importantly, the demand for your service or product in the area you want to work.
If you can set a price for your service or product at competitive levels and have the customer demand for it/them which will provide you with the income you need then your first-year success will be down to your ability to market, sell and deliver.
There are lots of inexpensive mechanisms for marketing especially if you’re a veteran – the Defence Discount Service being one. Similar schemes exist for the Blue Light Services; Police, fire and the NHS.