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Thinking about starting a business this year, but not sure where to start? You are not alone.
Despite the deteriorating economic outlook, the number of registered companies has risen sharply in the past year.
And it seems unlikely that it will stop in 2023. New data from Virgin StartUp shows that 26 per cent of adults in the UK would like to start their own business this year.
Founder Friday: The first Friday of the year sees a spike in interest from would-be entrepreneurs, data shows
January is one of the most popular times to do this. In 2022 alone, there were 46 percent more new businesses in the first quarter of the year than in the second.
The first Friday of the year is known as Founder Friday as it tends to see a spike in interest among those considering starting their own business.
To coincide with this, Virgin StartUp has opened a toll-free business support line where prospective entrepreneurs can speak to an experienced advisor and go through their plans.
We explain how you can benefit and share some top tips from three successful small business owners.
>Read our business doctor Dave Fishwick’s top tips on starting a small business
With Virgin’s support line, small business owners get the chance to reserve a 30-minute slot with an experienced business advisor, who will answer questions and guide prospective founders through the first steps of getting a business off the ground.
This can be anything from creating a business plan to financial forecasts, as well as assistance with getting loan applications started.
Andy Fishburn, managing director at Virgin StartUp, said: ‘At the start of a new year, we’ve historically seen January as a peak period for founders looking to get their business idea off the ground.
“Many will have used the time between Christmas and New Year wisely to do their research and see where their business fits in the market.
‘To help these future founders who are looking for reliable sources of advice when it comes to starting a new business in 2023, Virgin StartUp has launched an expert business advice line… With this we hope to give new founders the best start at their entrepreneurial journey.’
Free help: Entrepreneurs can get advice from an expert through Virgin StartUp’s helpline
What are the biggest challenges for budding founders?
While more Brits may want to start their own business, it’s a tough time being a small business owner.
Just as the UK emerged from the pandemic, the cost of living crisis hit in full force, forcing entrepreneurs to grapple with a triple whammy of supply chain problems, rising prices and reduced consumer demand.
Chancellor Jeremy Hunt’s autumn statement has made things even more difficult for entrepreneurs by cutting the dividend payout. The £2,000 grant will now fall to £1,000 in April 2023 and £500 in the following year. This means that directors who pay themselves largely or partly in dividends will have to deal with higher tax returns.
Aside from the tough economic backdrop, there are plenty of challenges that budding founders might not have even thought about.
“I used to think coming up with a product would be the hardest part of starting a business, but as it turned out, sales and marketing were so far from my experience and comfort zone for me that I struggled to realize the true potential of my business for a while,” says Sally Gouldstone, founder of natural skincare brand Seilich.
“I remember a business consultant asking to see my marketing strategy and asking, ‘What’s that?'”
The lack of resources in the earliest stages also poses problems, but Jeroo Cherag Doodhmal, founder of sustainable children’s footwear brand Pip and Henry, found this to work in her favour.
“You have more room to try different things, fail quickly — less publicly — and learn a lot in the process.”
Victoria Poon, who runs Alpaca Coffee, claims the best advice she was given at the start was ‘It’s a marathon, not a race’.
“I’m lucky enough to be surrounded by inspiring entrepreneurs and I hear this regularly — so it’s kind of community advice,” she said.
“This really stuck with me because it’s a testament to the fact that rest is important, and the seeds you sow today sometimes take a long time to germinate, but that doesn’t mean they won’t.”
Interested in receiving free business support from Virgin StartUp? You can reserve a slot here.
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