Starting up a small business of your own is an exciting prospect – harnessing the power of your niche in the market and personal business aptitude to achieve success. Independent businesses can garner loyal customer bases in their local communities and even national recognition when they play their cards right.
So, if you’re running your own small-to-mid size business and are looking for a few tips on running things more efficiently, then you should click here. We’ve covered why small, independent businesses have a growing potential in the UK and how you can make use of that potential.
The potential for SMEs in the UK
Small and medium sized enterprises (SMEs) play an essential role within the UK economy. At the start of 2020, there were 5.94 million small businesses which accounted for 99% of all businesses within the country.
Each SME is able to target specific sectors which prove popular and play to the strengths of the owner. This allows for crucial innovation within a variety of sectors, as smaller businesses are able to rapidly adapt to situations and take direct control over their strategy.
Representing 60% of private sector employment within the UK as well, it goes to show how impactful SMEs can be. With the right strategy and know-how, small businesses have the potential to carve out a place for themselves with a strong market position.
Smart tips for running a small business
Define your branding
The branding of your business establishes who you are within your sector. It’s the name of your business, visual identity, tone of voice, etc. A brand is what defines how people perceive your business. Conduct some research and figure out what your key attributes are, then bring it all together to create a cohesive and exciting brand image.
Formulate a new business plan
Setting out your strategic goals from the get-go allows you to start working towards them from day one. All your actions and decisions can be framed with these in mind. Understanding potential obstacles, market research and your budget will help you to make smarter decisions at every point.
Secure the necessary funding and finance
Having the financial position in place for your business allows you to unlock new opportunities and conduct your finances efficiently. Make sure you have an online business account to manage your money wherever you are and utilise financial products aimed at getting small businesses ahead.
Understand how tax works for your business
When running your own business, you need to ensure you’re keeping up with your tax responsibilities. Whether you’re operating as a sole trader or limited company, you need to register with the relevant government body. Check to make sure which form of tax you’ll need to pay and whether there are any tax deductible expenses you may have.
Keep records of your business activity
From your financial statements each month to any supply chain order confirmations, having records of everything your business does is incredibly helpful. This is the basis of your data which you can use to plan your business’ future and spot opportunities within the market. Identify things which are popular with your customers and enhance those areas to capitalise on their appeal.
With these five points to focus on, you can combine them with other strategic activities to run your business in a smarter way than ever before. Make the most of your niche and appeal to new customers without alienating your existing ones. Crucially, stay true to your business and remain authentic to what your values are.