There's no time like the New Year to launch a new business venture, however, the key to its success will be having all the right plans and trade tool insurance in place before you get started.
For many going self-employed is a life-long dream; there's the freedom of being your own boss, unlimited income potential and greater flexibility around your work, family and social life. Last year, the Office of National Statistics reported the number of registered self-employed workers increased by 90,000 in the first quarter of 2019, reaching a record-breaking 4.93 million!
So, if you're up for the challenge, Covermytools are here to help and not only to keep your trade tools insured but also we have put together a beginners guide to going it alone.
Sort out the right trade and tools insurance
The only sure-fire thing you can count on during the tumultuous beginning stages of your business or later in its development is the protection offered by commercial insurance. Avoid losing everything to a disaster that you could have easily insured - purchase robust and comprehensive commercial insurance to keep your small business protected on all sides.GET A QUOTE
Small businesses vary widely in their insurance needs. Many different factors—including industry, location and size—will determine the type of insurance your business needs to survive. All businesses, however, can benefit from the essential covers listed below.
- Specialist tools insurance provides all-risks protection for loss, damage or theft of hand tools and portable power tools in the UK or anywhere in the World for up to 30 days. For more information call one of our expert team on 0330 1240730 or get a quote today
- Employers’ liability is mandatory for all UK employers. It covers employers’ liability for bodily injuries or diseases their employees may suffer in the course of their employment.
- Property protects your commercial property, buildings and contents from a broad range of risks.
- Business interruption recoups lost profits in the event that insurable property damage causes your business to temporarily close.
- Public liability covers your liability for third-party injury and property damage arising from your business’ operations.
- Products liability insures against damages and costs arising from accidental injury or damage caused by products supplied by your business.
- Cyber liability provides protection against a host of cyber threats, including hacking, stolen data and system failure.
If you need any more information on getting the right business insurance for you, then call one of our expert team today.
Find Partners and Suppliers
You need to work with others in order to develop and sell your idea. Many businesses start with just one person but consider taking on partners and suppliers.
- Having a partner allows you to bring in someone with different skills and expertise with whom you can share responsibilities.
- Contact potential suppliers if you need raw materials, supplies or equipment to run your business. Get estimates, negotiate prices and develop relationships with reliable and trustworthy suppliers.
Forecasting Cash Flow Problems
All businesses are susceptible to cash flow problems. To overcome this risk, and to identify and prevent potential difficulties, you should diligently monitor your business’ finances.
- Sales forecasts estimate your business’ expected sales from month to month. This involves calculating your projected sales revenue, or the number of units you plan to sell multiplied by the price of each unit. Your projected sales revenue is based on assumptions such as your market share, resources, pricing and competition. Sales forecasts need to show the sales income you expect each month based on realistic expectations.
- Profit and loss forecasts incorporate your sales forecast and your costs to determine how profitable you expect your business to be. You should include expected revenue, cost of sales, gross profit and net profit.
- Cash flow forecasts build off the sales and profit and loss forecasts you have already done to estimate whether you will run short of cash at any time. Your cash flow forecast should include any costs not accounted for in the first two forecasts, such as stock, material, equipment, wages, rent, utilities and daily operating expenses. This information, coupled with knowledge of your customers’ payment patterns and when your bills are due will allow you to analyse the cash moving in and out of your business on any given day.
Attract New Customers
One of the fastest and most effective ways to attract new customers is to increase your business’ local presence. You can do this by asking customers to recommend you to family and friends, advertising in local media and using online and other forms of marketing
Plan for Growth
Once your business becomes profitable, you need to start planning immediately for future growth to ensure continued profitability. Consider taking the following actions as part of your plan.
- Research ways to increase sales from existing and new customers.
- Improve your products and services by testing changes with your customers.
- Develop new products and services, and breach new markets.
- Hire new employees and implement training programmes for all employees.
- Look for extra sources of funding, such as additional investors.
- Consider selling your products and services online.
- Work with a business mentor who can help you draft a plan for the future.
This list is not exhaustive, but you can use it as a starting point to prepare your business for future growth and success.
For more in-depth information, please contact Covermytools or see the additional resources below.
Additional Business Resources
- For business advice and support over the phone, call the Business Link Helpline at 0845 600 9006 (Monday-Friday 9 a.m. to 6 p.m.).
- A number of business training courses are available from the National Careers Service. Look up available courses at www.gov.uk/find-business-training-courses.
- For help in developing business ideas, visit the National Enterprise Network at www.nationalenterprisenetwork.org.