Did you know that 774,420 new businesses registered in the UK in 2022?
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This uptick is no surprise, considering the UK is a great place to start a business – it’s got a great talent pool, highly educated population, well-developed infrastructure, and a supportive business culture that promotes innovation and creativity.
Besides, the steep inflation, rising cost of living, and the Great Resignation have people convinced that there’s no better time to start a business than now.
Market Competition Getting Tougher by the Day
With each new entrepreneur entering the market, the competition gets tougher, raising the stakes.
It has been observed that 20% of startups fail in the first year, and 60% don’t make it past 3 years of being in business.
The first few years are the most challenging for a new business. With reasons ranging from the failure to raise new capital to a flawed business model and getting outcompeted, we can attribute most quick failures to a lack of preparation and misjudging the situation.
Too many people think the tough part is behind them once they’ve created a business plan and set things in motion with a team (or one-man army) that knows what they’re doing. They underestimate the extra hours and commitment required to manage the cash flow, monitor costs, and run the business correctly, only to realise later that they can’t wake up each day as excited to do the books as they were on day 1.
Nevertheless, the idea of being their own boss and having the freedom to work per their schedule keeps people going—just as it should be.
But the belief that you’ll beat the odds and the determination to keep your dream alive should be backed by a sound knowledge of running a business smartly and efficiently.
To help you on this path, we’ve rounded up some tried and tested tips for running a new business in the UK.
7 Tips for Efficiently Running a New Business in the UK
- Keep Referring to Your Business Plan
Remember that business plan you put so much thought into to identify potential obstacles, set achievable goals, and determine optimal resource allocation?
That’s your roadmap for success!
You must continue to look back at it and see how far you’ve come and what you still need to do. It’s a great way to keep yourself focused and motivated and ensure you’re still heading in the right direction.
While at it, you may find opportunities or changes in the market that you hadn’t thought of before. That’ll be your cue to review your current strategies and make necessary adjustments to keep up with the latest trends.
- Delegate, Delegate, Delegate
Starting a business in the UK is a big undertaking, and you’d want to be in control of every aspect of your company.
However, it’s important to remember that there are only so many hours in the day. You need to be able to focus on the tasks that are the most important for your business, which means you can’t do everything yourself.
Delegating specific tasks while avoiding micromanagement can help you improve your business’s efficiency.
When delegating tasks, it’s important to make sure you assign them to the right person. Look for someone with the skills, time, and enthusiasm to complete the task. It’s also important to set clear expectations and deadlines, so everyone knows when tasks must be completed.
Once a task has been assigned, trust your team to accomplish the desired results and put checks and balances in place to monitor the process without breathing down your employees’ necks.
When done right, delegation makes your team take accountability and become more invested in the success of your venture.
- Invest in Software to Automate Processes and Workflows
Repetitive tasks often take small businesses down with them. You must invest in the best tools and software that automate frequent tasks to run your business more efficiently and gain a competitive edge.
Most new entrepreneurs think automation will affect employee jobs and introduce unnecessary upfront expenses, but this is far from the truth. In reality, automating business processes and workflows free up your team’s time to work on more critical aspects of your business and increase your bottom line.
With a streamlined workflow, you’ll enjoy consistent growth and ease in navigating uncertain times. More importantly, the valuable insights and analytics generated by the automation software will help ensure that your finances are in order and your business complies with HMRC regulations to avoid potential fines and penalties.
- Incorporate a UK-Based Online Payment Solution
One of the most important aspects of running a new business in the UK is having a reliable, efficient, and secure online payment solution.
In today’s digital age, customers increasingly expect to be able to make payments quickly and easily, regardless of the type of business you operate. This is why new entrepreneurs in the UK must use technology disruptions to their advantage to stand out from the crowd.
There are many online payment solutions available to businesses in the UK. Finding the right one for your needs is critical to keep your operations running smoothly.
- Promote a Culture of Open Communication
Communication is the lifeblood of any organisation, and it’s especially important for new businesses. Encouraging a culture of open communication in your company can help you build trust, improve collaboration, and identify and solve problems quickly.
Here are our top tips for promoting this culture:
- Set clear expectations: Make sure everyone in your organisation knows what’s expected of them. Set clear guidelines and protocols, so everyone knows how and when to work.
- Listen: Active listening is key to any successful communication strategy. Ask questions, be curious, and make sure you really understand what the other person is saying before responding or coming to a conclusion.
- Show respect: Treat everyone with respect in all forms of communication, whether via email, in person, or on the phone.
- Encourage two-way dialogue: Open communication is a two-way street, so make sure everyone in your organisation feels comfortable speaking up, voicing their opinion, and contributing to conversations.
- Make time for face-to-face conversations: Regular face-to-face conversations with your team are a great way to build trust, improve engagement, and encourage collaboration.
- Use technology wisely: Invest in communication tools and apps that make it easier for inter-departmental team members to contact each other for hassle-free communication.
- Celebrate small successes: Acknowledge and celebrate milestones as a team to encourage everyone to perform to the best of their abilities and push themselves outside their comfort zones.
- Set Short-Term Goals
When you look at the finish line from the starting point, it may seem too far-fetched for your liking. Many people feel the same way after starting a new business in the UK.
The key to avoiding getting overwhelmed is breaking long-term goals and targets into small, actionable objectives that are easier to achieve and quantify.
For example, if you’re aiming to launch a new product by the end of the year, you could work out which tasks you need to complete each month to achieve this.
When you have clear, achievable goals with a deadline, you’re more likely to stay on track and motivated. You’ll also know what skills or resources you need to reach those goals and find it easier to put together a plan to get there.
Plus, it’s incredibly satisfying to tick off each task and get closer to achieving your overall objective.
- Adopt an Agile Approach
Setting goals and targets for your business doesn’t mean you have to stick to them rigidly. If you find that something isn’t working or you’ve identified a better approach, don’t be afraid to make changes to your plan as appropriate.
As a small entrepreneur, your ability and willingness to embrace change and modify your ideas and processes as you go will set the right tone for your company’s culture.
Preparing for change and having the courage to face challenges head-on is critical. Otherwise, your business will stagnate and be outcompeted by forward-thinking businesses that welcome change in the face of changing economic situations, consumer demands, and market trends.
Maximise Your Business Efficiency with OpenAEuropeanCompany!
Starting a new business in the UK or multiple countries is the first step towards a successful and rewarding future. But it’s only the beginning.
The tips above offer an actionable plan for running a new business in the UK. Nevertheless, budding entrepreneurs should get any help they can to get their businesses off the ground and turn their dreams into reality.
If you’re interested in setting up a business in the UK, please reach out to OpenAEuropeanCompany. Our company formation agency can guide you in setting up your business and can also match you with a third-party vendor that offers a suitable online payment solution you can link to your accounting software. Contact us today and take your UK business to the next level.
Read other articles about setting up a business in the UK