Blog - forming your company

The First Year In Business: How Successful Startups Made It Through

07 October 2016

Starting a business is a big risk, but often one that is worth taking. A lot of the time, start-up owners are on the line financially and sometimes even mentally during their first year of business. That first year is critical in deciding whether your business will be a success or a failure. While no one possesses a magic formula that can tell you for sure if your business will be a hit or a miss, these tips will help you to make that first year as good as it can be and line your business up for its best chance at success!

Keep on trying

When you read about businesses succeeding or failing, you’d be forgiven for thinking that there are only two options – magical unicorn businesses that are instant runaway successes and disastrous failures – businesses that have always lacked potential and are doomed from the start. The truth is that most startup businesses usually fall somewhere in-between these two extremes.

In order to influence your business in the right direction, perspiration and perseverance is required in order to make your inspiration pay off. It’s also important to try and maintain a positive outlook despite the challenges that your business will inevitably face. If you can see past these challenges to the future of your business, then you’re well on your way to succeeding.

Work together

Time is a commodity during the first year of a start-up and business owners are often immersed in the business, but it can be good to take some time to talk to colleagues, friends and other advisors. Collaborating with these people is a great way to gain feedback, insight and even new ideas that could help your business.

Not every conversation will be of value to your business, but in general most will be positive and you’ll also be building yourself a support network that will be useful in years to come.

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Enjoy the journey

This is an important one! There are a lot of risks involved with starting a business and some challenges can seem insurmountable and create a lot of stress. However, the opportunity to pursue something you truly believe in, to see it grow and to be your own boss is considered by most to be excellent compensation for the initial tough times after forming your company.

Plan for the future!

Planning for year two is something that is important to do. Setting long term goals, such as having five year plans, is also recommended by many leading entrepreneurs. This will also help you to see past any challenges that appear during year one and aid you in finding a way through to business success. It’s also great to set goals so that you know exactly what each task you do is contributing to!

Are you ready to begin your business journey to success?

From forming your company with our online company formation service, to business accounting and much more, we’re here to help your business on its journey to success. Find out more about the services we offer on our website: blog.eformations.co.uk Or alternatively, give us a call for a friendly chat on: 0208 232 5479.

Crowdfunding VS Bootstrapping: What’s Right For Your Business?

11 August 2015

If you’re starting a business but can’t see how you can possibly afford to fund it, what do you do? There are several options open to you. Some start-ups apply for a bank loan or seek investors. However, these ways of funding your business can be hard to attain, especially if you don’t have a track record of running businesses. Easier options for your company might be crowdfunding, or doing without any extra funding by bootstrapping your way to success.

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In order to help you choose the right option for your business, here are some pros and cons of the crowdfunding and bootstrapping methods:

Bootstrap your business

Pros

  • You are entirely in control of your business – what you decide goes!
  • Funding a business with your own money is great for focusing the mind for success. You don’t want to lose your investment.
  • It’s easier to make fast decisions and changes in your company as you don’t have to run it by anyone else first.
  • You’ll have more time to spend on the business as you won’t be involving others.

Cons

  • You’ll have to sacrifice anything that is not absolutely necessary – no plush office!
  • A lack of funding can limit what you can achieve, as you will have fewer resources.
  • It is entirely down to you whether or not your business succeeds or fails.
  • You are assuming all of the financial risk by putting your own money into this venture. Can you afford to lose that money?

Crowdfund your company

Pros

  • Funding means that your business can grow a lot faster and you can even afford to hire other people.
  • By creating a campaign and driving publicity for it, your business will have a head-start in marketing by already being in people’s awareness.
  • You may attract bigger investors who like your idea and have previous business experience you can call on.
  • More funding undoubtedly creates more opportunities for your business.

Cons

  • It can be hard to generate enough publicity and interest to attain your funding goals.
  • You will have to answer to and update those who have funded you. You will have to deliver on any promises made.
  • It is time consuming to raise the capital and it can also be costly. There’s also a chance you won’t hit your target!
  • You will have to be able to justify exactly how you are going to spend the money you’ll receive, which takes time and planning. Get it wrong and you might not have enough money to achieve your goals.

Take the first steps by forming your company!

Whether you decide to opt for outside funding, or give bootstrapping a go, one of the first steps to achieving your business dreams is to form your company. Your business can be formed and ready to go in 3-5 working hours, leaving you free to take care of more important tasks. Find out more about our easy to use, online company formation service here: https://blog.eformations.co.uk/prices-packages/

Need a helping hand in your business?

Here at eformations we offer many services for businesses. From business accounting, to a first class business address service, and online company formation, we’re here to help your company succeed. View all of our services and form your company today by visiting our website. Alternatively, if you have any questions, feel free to call us for a friendly chat on 020 8232 5479.