Running your own small business isn’t the easiest way to make a living, but when you get it right, it’s hugely satisfying. According to the latest government figures
, there were 5.4 million private sector businesses in the UK at the beginning of 2015, 99.3% of which were classified as small businesses.
If you are about to set up your own business, or have just taken the plunge, here are our business solicitors’ best tips to help you succeed.
Compete on service, not price
You’re never going to be able to match the prices offered by the large, established businesses, so concentrate on excellent customer service instead. Your company’s reputation will spread if your customers are happy enough to recommend you to their friends and family. And don’t just sit there waiting for people to come to you, get involved with your community through local activities and charities to put you and your brand at the forefront of people’s minds.
Networking
Small business owners understand the importance of networking with other businesses and there are more and more business networking groups being set up all the time. Try out the groups in your area to see which ones work best for you, then commit to going to them regularly. You’ll meet all sorts of people running a huge range of different businesses, providing each other with a lot of support as well as custom and recommendations.
Shout about your business on social media
If your potential clients don’t know you exist, you need to find them and tell them where you are. Research which social media sites they are most likely to use, then set up accounts, start following people, and make sure you post and repost regularly and frequently. If you’re not sure how best to go about it, or haven’t got the time to do it yourself, invest in the services of a digital marketing specialist.
Keep on top of your finances
According to smallbusiness.co.uk
, entrepreneurs underestimate the cost of setting up a new business by £2,525 - an amount which could mean the difference between success and failure. So when you’re setting up. make sure you research all the costs and set aside a contingency fund for unexpected costs.
Don’t cut corners on professional advice
A favourite lawyer joke was coined by Shakespeare: “The first thing we do, let’s kill all the lawyers”. It was a throwaway line by a minor character in Henry VI, Part Two made by a butcher to a group of working class men who were discussing what they’d do if one of them was made king. Whilst a lot of people may initially agree with the sentiment, when you think about it in more depth, there are situations where the services of a lawyer could save you a lot of trouble and expense in the future. For example, you decide to take on 3 year lease on new business premises because the rent is low enough for a start-up. But what if there is a problem with a leaking roof further down the line? Do you know for sure that the landlord is responsible for repairs? With such a low rent, it’s more likely that you have actually signed a lease with a full repairing obligation which means you have to replace the roof at your own expense. A lawyer would have prevented you making such a mistake in the first place leaving you in a better position now.
Another example is if you start a business with a close friend. You’ve known each other for years and get on so well there’s no reason to instruct a lawyer to draw up any agreements. Many friends have set up businesses in this way, but in some cases one of the friends dies and the family from hell takes over, giving you no end of problems and costing you a lot of money to get out of the situation. If you and your friend had drawn up an agreement in the first place that dealt with such an event, you would be in a much stronger position and would not have had to spend so much money.
According to the Law Society
, “A specialised business solicitor can help you identify future legal problems and advise you on what steps to take to prevent problems before they happen, which will protect your business from risk and save you money.” This means getting the right advice about business structure, choosing a name and registering your company, finance, tax advice, constitutional benefits, premises and legal contracts, protecting intellectual property, your legal duties and documentation.
Talk to one of Duffield Harrison’s business solicitors
for advice on all aspects of business
and HR.