A small business can be owned by a sole trader or a limited company, but what sets it apart from larger businesses is that it employs fewer than 50 people. In the EU, a small business is defined as having an annual turnover of less than £10m; however, financial values do not apply in the same way in the UK.
Launching a small business
To set up a small business, it must first be established that a need exists for the products or services it will offer. Entrepreneurs should undertake due diligence and market research to determine whether their proposed products or services will be desirable to their target audience.
Many small business owners branch out on their own after developing the requisite skills, experience, connections and knowledge as an employee of a business in a similar industry sector. Others will need to develop a comprehensive business plan in which they will identify their target audience, make accurate financial forecasts, and develop a strong understanding of the legal and regulatory requirements with which they must abide.
Entrepreneurs wishing to start a small business in Cheltenham should consider engaging the services of a Cheltenham business advisory services provider to assist them in creating a strong evidence set to support any funding applications they need to make.
The importance of a business plan
A business plan is an essential document for small business owners. It allows them to consider the economic environment in which they will work and to consider factors such as the way in which interest rates could affect financing decisions and business growth.
The business plan is a vital document that lenders will scrutinise prior to loaning funds to set up a business; what’s more, it is a live document that should be reviewed and updated every time a material change occurs.
A Cheltenham business advisory service provider can advise prospective small business owners on their tax liabilities, growth strategies and resilience measures in addition to providing coaching, supporting them with their accountancy services, and complying with regulatory requirements.
