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Is it worth starting a business under recessional conditions?

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It would seem that now is not the best time to start your own business. In fact, rising inflation, increasing energy prices and general market crisis are not preventing Britons from creating startups. In 2021, more than 800 thousand new businesses were registered in the UK. As of 2022, as many as 5.5 million entrepreneurs are registered in our country. Everyone of them had many doubts and started with an idea. We will help you to objectively evaluate the situation and make a decision.

The main stages on the way to your own business:

  • Define a business idea;
  • Analyse the market and competitors’ activities;
  • Prepare a business plan;
  • Find premises and a basic set of equipment;
  • Gather a team;
  • Register your business and trademark.

Everyone can start a business. It requires an action plan, a clear goal understanding and motivation. Successful London investor and financier Dmitry Leus claims that everyone has the energy to implement their plans. It is important to be prepared to take risks, take responsibility and wisely face defeats. Whatever you do, it is impossible to avoid failures. Consider them as an experience and move on.

How to assess your business idea potential?

If you are reading this article, you probably know what you want to do. Before you begin, answer a few questions. Do you have knowledge and skills to implement your idea? If you understand that your qualifications are not enough, start learning. The second question concerns originality: how your idea differs from competitors. Think about what potential customers’ needs you can satisfy.

Philip Bacon, a digital marketing agency Bacon Marketing founder claims that “a successful business is born out of acute need”.  It is crucial to understand whether your product or service will be in demand. Should your startup meet people’s needs, solve their problems or improve their lives somehow, it is prospective. Finally, answer the most difficult question: is it realistic to implement your idea? Consider industry peculiarities, competition and your financial situation. Should insufficient funding remain the only problem, look for investors.

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Analyse the market, potential customers and competitors

Imagine that you need to cook dinner for a large group of strangers. It is quite challenging if you do not know their tastes and eating habits. Some of them may be vegetarians, some may be allergic to nuts or lactose intolerant. In order to succeed, you should learn more about your guests and accommodate their tastes when developing the menu. In business, this process is called market analysis and it is the key to success.

Market analysis will allow you to better understand potential customers’ needs and learn how competitors work. Anneka Wallington, Commercial Director of Recognised Ltd, considers analytics to be the key element of business planning. Only market analysis allows you to understand trends, real customer needs and gaps in competitors’ work. Define an idea of target audience and find a way to communicate with them. When you understand customers’ needs, you will easily complete all the steps of the plan outlined above.

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