Have you suffered a setback in life or business? You’re certainly not alone; around 20% of companies fail within their first year. Many of the world’s most successful entrepreneurs — such as Sir Richard Branson, Elon Musk, and Mark Cuban — have failed at times. Here’s how to start your own business after a setback, regardless of how defeated you feel.
1. Use Free Tools to Keep Your Costs Low
Saving money is essential when you start a business, especially in an expensive city like London. Most failing companies struggle because of cash flow issues. However, there are a plethora of free tools today. Simply find an online PDF editor. Did you know you can change PDF documents without spending a cent? Simply upload your document, make edits, download it, and share it without having to print it.
2. Set Up Payroll for Your Employees
When you’re a new business with a team of staff, it can be tough to monitor your cash flow. However, there are many benefits of setting up a payroll, such as:
- Employer compliance. A payroll ensures you follow all laws and regulations in London.
- Manage your costs. It can prevent you from overpaying or underpaying your staff.
- Time management. A payroll stops you from paying your staff late.
- Employee benefits. It’s more straightforward to reward employees when you have a payroll.
3. Have a Strong Business Plan
Almost all thriving businesses have a business plan. It helps you obtain finance, stay on track with your goals, and provides a solid structure for your business. The Harvard Business Review suggests entrepreneurs are 16% more likely to achieve viability with a formal business plan. Your business plan can include:
- Marketing strategy. Your marketing strategy should detail how you’ll find your target market.
- Financial projections. Detail your monetary forecasts because potential investors will demand them.
- HR strategy. Will you need to hire staff to build the business? Show your plan for hiring staff.
- Competition. Detail your competition in your business plan and show how you’re different from them.
- Product or service. What is your product and your service? Write a simple and compelling mission statement of what you wish to achieve.
4. Pitch for Investment
Depending on your business, you may need to pitch for investment. London is the financial capital of the world. As a result, it’s one of the world’s most incredible places to find business investors. Here are some of the most common business investors in London:
- Banks. The United Kingdom has the fourth-largest banking system in the world and the largest in Europe, so there are many options for founders.
- Angel investors. London has many angel investors, but they’ll want a significant share of your business.
- Venture capitalists. London has plenty of world-famous venture capital companies.
5. Find Business Mentorship and Network
London is one of the world’s greatest cities for business events, including networking events, Black business entrepreneurs conferences, and startup pitch competitions. Not only can you find business mentors or partners to help you learn from past mistakes, but you can also find potential investors.
Don’t Let Your Setbacks Define You
Setbacks are never straightforward, but you can push ahead by using the tips in this article. Visit Seb Brantigan for help building your business.
Credit: Dean Burgess
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