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When Is the Right Time to Start a Small Business?
12 July 2022
Is There a Right Time to Start a Small Business?
When Is the Right Time to Start a Small Business?
Starting a business is never easy. You will need to decide on your service or product offering, what your target audience will be—and when it is a suitable time to launch.
How many actually know what it takes to start, run, and grow a business? Entrepreneurs use lots of reasons for starting their businesses, including disliking their current job, needing a creative outlet, or just feeding a desire for more money. Regardless of what motivates you, the timing for establishing a business must be thought out in depth. Recoup Business Support Centre was launched in November 2019, after Christmas that year the world entered the Covid 19 pandemic. Luckily, the board of RBSC had completed extensive research into the target market for the business, developed a strategic plan that set small targets for growth over the first couple of years. This plan was supported with a good financial analysis with minimal costs for the business.
Some of the key things that need to be considered are:
Research and Find Your Target Audience At the heart of every great idea is who you intend to serve. Your target audience comprises the people who need or want your product or service, and, in turn, can help your business become successful. Over 60 % of new businesses close within the first three years so as you develop your business idea, survey your target audience often to understand how you can solve their problems and meet their needs. One such viable way to find your target audience is through social media groups.
Test Out Your Idea on the Target Market If you have a business idea, but are not sure that it’s going to work, the best way to find out is to test the waters. In early 2019, RBSC board evaluated their market by offering free services to micro-SME’s. This included providing free courses to entrepreneurs looking to start their own business, helping them actually understand what it takes to start, run, and grow a business.
Do You Have the Time, Energy, and Resources? If you are ready to launch a business, you will need to have time to devote to it, energy to push through challenging times, financial resources, and a network that will support your venture.
Time and Energy While you may be anxious to get your business started, time is a crucial factor you need to consider, especially regarding your home and professional life. You should still believe in the value of your idea but always consider the importance of building a new business on solid foundations.
Financial Resources How do you plan on funding your new business? For many entrepreneurs, launching a business will mean creating a budget for legal structure, operating costs, marketing, and supplies. As you consider whether now is the right time to start your business, ask yourself these important financial questions:
Network Support The ability to network with others—through social media or networks like peer-to-peer networks is crucial to starting a business.
You’ve Made a Plan Whatever your industry, the best way to launch a business is by developing a robust and strategic business plan and being realistic in your ability to execute and sustain it. Running a business requires dedication and an understanding of your target audience, your industry’s economic outlook, and your own financial capabilities. However, a strong business plan, complete with your competitive and market analysis, can reinforce your vision—and help turn your idea into a reality at whichever time feels right for you.
Starting a business is never easy. You will need to decide on your service or product offering, what your target audience will be—and when it is a suitable time to launch.
How many actually know what it takes to start, run, and grow a business? Entrepreneurs use lots of reasons for starting their businesses, including disliking their current job, needing a creative outlet, or just feeding a desire for more money. Regardless of what motivates you, the timing for establishing a business must be thought out in depth. Recoup Business Support Centre was launched in November 2019, after Christmas that year the world entered the Covid 19 pandemic. Luckily, the board of RBSC had completed extensive research into the target market for the business, developed a strategic plan that set small targets for growth over the first couple of years. This plan was supported with a good financial analysis with minimal costs for the business.
Some of the key things that need to be considered are:
Research and Find Your Target Audience At the heart of every great idea is who you intend to serve. Your target audience comprises the people who need or want your product or service, and, in turn, can help your business become successful. Over 60 % of new businesses close within the first three years so as you develop your business idea, survey your target audience often to understand how you can solve their problems and meet their needs. One such viable way to find your target audience is through social media groups.
Test Out Your Idea on the Target Market If you have a business idea, but are not sure that it’s going to work, the best way to find out is to test the waters. In early 2019, RBSC board evaluated their market by offering free services to micro-SME’s. This included providing free courses to entrepreneurs looking to start their own business, helping them actually understand what it takes to start, run, and grow a business.
Do You Have the Time, Energy, and Resources? If you are ready to launch a business, you will need to have time to devote to it, energy to push through challenging times, financial resources, and a network that will support your venture.
Time and Energy While you may be anxious to get your business started, time is a crucial factor you need to consider, especially regarding your home and professional life. You should still believe in the value of your idea but always consider the importance of building a new business on solid foundations.
Financial Resources How do you plan on funding your new business? For many entrepreneurs, launching a business will mean creating a budget for legal structure, operating costs, marketing, and supplies. As you consider whether now is the right time to start your business, ask yourself these important financial questions:
- How much money do you have saved to fund your business?
- What does your credit look like, and will it help or hinder you from starting your business?
- What start-up capital do you need to fund your business?
- What are your business expenses?
- How will launching this business help or hurt your personal finances (especially if you quit your job to start this business)?
Network Support The ability to network with others—through social media or networks like peer-to-peer networks is crucial to starting a business.
You’ve Made a Plan Whatever your industry, the best way to launch a business is by developing a robust and strategic business plan and being realistic in your ability to execute and sustain it. Running a business requires dedication and an understanding of your target audience, your industry’s economic outlook, and your own financial capabilities. However, a strong business plan, complete with your competitive and market analysis, can reinforce your vision—and help turn your idea into a reality at whichever time feels right for you.
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Understanding the Struggles of Small Businesses with Delayed Payments & Debts
How your business can combat Late Payments
What is Credit Control and How Can Outsourcing Help? Credit control is an important part of a business’s financial management strategy. It is designed to reduce credit risk and ensure that debtors are paying their debts on time. Credit control systems help businesses to identify customers who are at higher risk of defaulting on their payments, and also help them to collect outstanding debts. With the right credit control system in place, businesses can manage their credit risks more effectively and minimize losses due to bad debt. Outsourcing credit control can be a great way to free up your employees and resources to focus on other aspects of your business. By outsourcing this task, you can save time and money that would otherwise be spent on hiring additional staff or investing in costly training programmes. Furthermore, you can also benefit from the expertise of experienced professionals who have an in-depth knowledge of credit control processes and regulations. This will help you ensure that all accounts receivable are managed efficiently, while also reducing the risk of bad debts. Benefits of Outsourcing Your Credit Control Functions Outsourcing credit control offers businesses a range of benefits to improve cashflow, reduce costs and free up key resources. It can help to ensure that invoices are paid on time and the process is managed in an efficient and effective manner. With outsourced credit control, businesses can gain access to expertise and experience in the field of debt collection. This means that they can benefit from improved processes, as well as aged debt recovery and can help make better decisions about when and how to extend credit, as well as strategies for collecting payments quickly and efficiently. For your employees, outsourcing can help to reduce stress levels for staff by taking away the burden of chasing payments or handling difficult debtors. How to Choose an Outsourcing Partner for Credit Control Services Outsourcing Credit Control can be a great way to increase efficiency and reduce costs, but it can also be seen as a risk to your business relationships. Many businesses fear that outsourcing their credit control team will lead to strained relationships with their customers and suppliers. However, taking on a company with a strong reputation for exceptional service and interaction with debtors will mitigate this risk and ensure that their involvement does not jeopardise your business relationships. When choosing an outsourcing partner for credit control services, it is important to consider their experience in the industry, their customer service record, and the quality of their services. It will always be valuable to look for a partner who is willing to provide tailored solutions that meet your specific needs. Be sure to take into consideration the cost of their services so that you can make an informed decision, there is a wide range of options and companies out there offering these services. Best Practices for Implementing an Effective Credit Control System Getting paid on time is a challenge that many businesses face. It involves constantly chasing payment with reminder emails or calling your customers for an update on when your invoice will be paid. This process can be time-consuming and tedious, but it is necessary to ensure your business's financial health. To ensure that debts are paid in a timely manner, it is important to have effective credit control processes in place here are a few examples that are worth implementing even if outsourcing is not on the immediate horizon. Before entering into any contract, it is important to conduct thorough research on your new customer or client. This will help you make sure that your customer or client is reliable and trustworthy, and that you can be confident in the agreement you are about to enter into. Researching a potential new customer or client can involve checking references, verifying information provided by the customer or client, and conducting credit checks. If your business is often spending time chasing late payments from customers, it might be worth reconsidering your invoicing processes. By making your invoices as clear and concise as possible, you can avoid any confusion or misunderstandings about payment terms. This will help ensure that customers know exactly what they need to do in order to pay you on time. Additionally, having a consistent invoicing system will help streamline your processes and save you time chasing up late payments in the future. Make the Right Choice & Outsource Your Business's Credit Control Functions Today! Healthy cashflow is crucial to the success of any business, it’s amazing how many businesses neglect their credit control function and often employ inexperienced workers or overworked accountants. Outsourcing these functions to a trustworthy and experience party can have huge benefits for companies struggling to keep onto of credit control functions. Outsourcing credit control can help improve your business cashflow, reduce bad debt, improve client relationships and provide reliable solutions without the need for costly in-house solutions. Recoup is a leading debt collection and credit control company that has been in business for decades. With our extensive experience, they have developed bespoke solutions tailored to the specific needs of a wide variety of businesses. Their solutions are designed to help businesses manage their debt collection and credit control processes more efficiently and effectively, while also providing them with the necessary tools to ensure compliance with the relevant laws and regulations. By leveraging Recoup's expertise, businesses can ensure that they remain compliant while also minimizing their financial losses.
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If a creditor waits too long to take court action, the debt will become ‘unenforceable’ or statute barred. This means the debt still exists but the law (statute) can be used to prevent (bar) the creditor from getting a court judgment or order to recover it.
A County Court Judgment (CCJ) is a type of court order in England, Wales and Northern Ireland that might be registered against you if you fail to repay money you owe. F