Ten tips to survive your first year as an entrepreneur

Barriers to starting a business have been lowered and with over 5 million small businesses, Britain is undoubtedly a hub for entrepreneurship.

Despite the lockdown restrictions, the pandemic forced many Britons to set up a business – around 800,000 businesses were registered in the first year of the pandemic.

But not everyone is so lucky. It is estimated that nine out of ten start-ups eventually fail, and this will only become more painful against the backdrop of supply chain problems, rising energy prices and inflation.

We asked experts, including an investor and an entrepreneur, for some tips for surviving your first year as an entrepreneur.

Emma Jones CBE, Founder of Enterprise Nation

Entrepreneur Emma Jones has great insight into the UK’s small businesses after launching Enterprise Nation to support more than 120,000 small businesses.

She outlines her top tips for budding entrepreneurs to make sure they don’t fall at the first hurdle.

1. Do your research: The first thing to do is make sure you do your research right. If it’s a food product, test on family and friends and then bring it out to a wider, less biased audience.

It is always worth doing ongoing research on competitors as well. How do they do things, and how can you do things better or more efficiently?

In some cases, it may be worth considering investing in market research. Is there a demand for your product or service, what would people be willing to pay for it? Then see if you can make enough profit with it to move on to the next business phase.

2. Make a business plan: If you haven’t already, you should invest time in preparing a business plan. a good way to look at this is I’M OFF: idea, market, operations, finance and friends – including advisors and those who can help you get started.

You can create a business action plan with Mastercard on Enterprise Nation’s free Strive app. It walks you through everything from finance to marketing strategy.

It helps you stay on track and accountable and achieving the goals can also be very motivating.

3. Start Selling: Reaching a wider audience instantly without having to invest a huge marketing budget can be done through powerful global marketplaces such as Amazon, Etsy and eBay, which give you easy access to customers in the UK and around the world.

Customers can also be reached through powerful social media platforms such as TikTok and Instagram which now come with a built-in e-commerce feature.

4. Get Paid: It sounds ridiculous, but having processes in place to ensure you can get paid on time is vital.

If you have cash in the bank, you are less likely to have to take on unnecessary and expensive financing.

If you use marketplaces, the money will come in automatically, but if not, get used to billing regularly and following up to get paid.

Fast payment is vital for small businesses.

5. Refresher training and network: As soon as orders or work come in, start networking to broaden your contacts and build skills. We know that companies that seek advice or a mentor do better than those that don’t.

Joining local groups and attending events while you can is a great way to learn and explore in business.

Enterprise Nation hosts friendly local gatherings hosted by local leaders. It’s free to join, but you’ll need to buy your own coffee from independent coffee shops, where we hold the meet-ups.

Ben Law, Head of GoDaddy UK and Ireland

Ben Law, who owns his own business, shares some tips for budding entrepreneurs.

Like Jones, he emphasizes the importance of networking with other small business owners and ensuring that business and marketing plans are in the best shape.

He also points out the importance of sustainability in the current climate.

6. Put Your Foundations In Place: It sounds obvious, but it’s so important for any new business to make sure you get the basics watertight.

With clear business and marketing plans, entrepreneurs can capitalize on growth opportunities and respond to problems.

Businesses need to have a proven view of their target audience, a clear idea of ​​what it takes to achieve profitability, and a validated proof of concept.

If you haven’t already got all of these things in order, it’s worth taking the extra time to make sure you’re fully prepared to survive your first year.

7. Network, Network, Network: It’s easy to think that all entrepreneurs are out on their own and unwilling to share help and advice, but that couldn’t be further from the truth.

Small business is a close-knit community, with many entrepreneurs eager to help those just starting out.

With the prospect of a possible recession looming, you can find others who survived the 2008 financial crash and can offer some wise advice.

When you meet people, make sure it’s easy to remember or refer you. A professional email address with your business name or full name is a good place to start, as is a business domain name.

8. Don’t skimp on your ecommerce offering: Whether it’s ordering products and services or doing more research on your brand, consumers are increasingly suspicious of companies without an online presence.

Setting up a great looking, easy to use website is essential for small businesses in their first year and can be the difference between gaining a loyal customer or never seeing it again, and building more of the former in your first year. the better.

Your online store acts as your virtual storefront and should be as attractive as possible.

For those looking to start a new venture or expand an existing business, I would recommend a website builder such as GoDaddy’s online store. Setting up Google Business profiles and social media accounts will also help significantly in SEO.

9. Demonstrate your green credentials: Now more than ever, consumers want to support sustainable businesses.

For a company to get through a tough first year, it has to be built for the future, and being transparent about suppliers and products is an important part of that.

Micro-enterprises are in a unique position to embed sustainable practices from the outset.

By embracing environmental sustainability, small businesses not only help the environment, but also open up to a wider customer base that will support the business year-round and beyond.

10. Set Yourself Goals: Having clear goals will give you a sense of focus and help you determine which areas of your business to work on.

You can track progress by week, month or quarter in your first year – and make changes to adapt to the market.

Pitfalls to Avoid

There’s a lot to do in the first year of trading, so things like networking may not be your top priority when you’re getting to grips with running a business.

For Andrew Wolfson, who runs Pembroke VCT, an early investor in Pasta Evangelists, startups often lead the way before they have established the company’s founding principles.

“In the first year of trading, it’s often tempting for founders to try to run away before they can walk,” said Andrew Wolfson, chief executive of Pembroke VCT, an early investor in Pasta Evangelists.

“We’ve often heard how founders will build a £100m company. Our advice is to focus on building a £5million first.”

David Abrahamovitch, chief executive and founder of coffee company Grind, agrees.

He adds: “When I speak with small business founders, I’ve found that they are often focused on things that just don’t matter at that early stage — they’re concerned about registering trademarks or protecting their business.” ideas against competitors.

“There are some exceptions where this is important of course, but in the vast majority of cases nobody cares, and although your business means everything to you, most of the world pays no attention to it.

“All your effort and money should go into getting your business off the ground, finding your first customers, making your first hires, and taking this thing from an idea to a real business.

“Obviously you have to check a little bit that you’re not using a brand name that already exists, but once it starts working and you’re really into something, you can protect these things later.”