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Frequently asked questions when starting a new business

By February 14th, 2024 No Comments
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For many of us, entering a new year is a time for change. This can include picking up a hobby, going to the gym, or even starting a new business venture.

In 2023, the cost-of-living crisis affected over 92% of us here in the UK. The cost of fuel, electricity and food all increased, with the inflation rate reaching a high of 11.6% in March. This price increase saw many people look for second sources of income to make ends meet. 48% of us are considering launching a side hustle in 2024, with 85% saying this is in relation to the cost-of-living crisis. Here are some of the most frequently asked questions when starting a new business.

What type of business should I start?

Some of the most successful businesses in the world started with one thing. A passion. It is a lot easier to dedicate time and energy to something when you have a genuine interest in it. When you are enthusiastic about something, it shows. It fuels resilience and gives you the ability to not lose focus.

If you are struggling to think of a business idea based on your hobbies, there are other options. You may get your ideas from products or services you currently use that could do with improving. Finding a solution to an existing problem can lead to great success. Think of something that often bothers you, how can this be resolved?

Once you have identified your chosen product or service, you need to do some research. Look at your competitors, leading brands, your target audience, and gaps in the industry. If your final idea is a passion of yours, you’re probably aware of your competitors and your target audience. Or, if you’re improving an issue with a current product or service, how many people are facing the same issue? What would your average customer look like?

What are the most profitable small businesses?

If you are starting a new business to aid financially with the cost-of-living crisis, here are some of the most profitable businesses in the UK according to Nerd Wallet.

Physical businesses:

  • Food trucks
  • Car wash services
  • Auto repair
  • Personal trainers

Online businesses:

  • Flipping and selling thrifted goods
  • Sweet food boxes
  • Homemade home decor
  • Homemade treats for pet owners

What should my business name be?

Choosing a name for your business can be hard. It takes five to seven brand interactions before a consumer remembers your brand. So, having a short and unique name is optimal for your business to be memorable. Before finalising your brand’s name, it’s a good idea to create a shortlist. You can then share this list with friends, family, or even strangers and see what name is most popular. After all, your businesses name is often the first impression people get.

After deciding on a final name, you must check that your chosen business name is not already in use. You can do this online via company name checker.

How should I market my business?

There are 8.5 billion online searches every day in the UK, so having an online presence is key to business growth. A good website will not only show your products or services, but also present your brand’s personality. Having a nice website is one thing, but getting people to see it is a whole other story. Only 0.63% of people click on the second page when searching for something on Google. For your business to get on the first page, you must understand how Google Search works.

Another way to direct people to your website is to link to it on social media. There are over 57 million active social media users in the UK across a multitude of platforms. Doing giveaways and following other similar accounts is a great way to boost your following. To reach a wider audience you can also boost and promote posts. Marketing your business on social media is a cheap and effective way to have your account seen by more people.

Many people forget about the uses of traditional media when setting up a business. For physical stores, advertising in a local newspaper is a great way to share the word about your business. You could even include discount codes or vouchers to entice customers to your store.

How should I accept payment?

In the UK, we pay for goods and services using card or contactless 85% of the time. In fact, over half of us will walk away from a business that only accepts cash. So, for your business to serve as many customers as possible, accepting card payment is the way to go.

Here at UTP, we provide a wide array of card machines to suit the needs of any business. We provide countertop, mobile and portable card machines for physical businesses. Our eCommerce Payment Gateway allows customers to make online purchases from your website. We provide some of the lowest transaction rates in the UK, helping your business to keep profits high.

Starting a new business can be daunting, yet the rewards can be life changing. If you’re thinking of starting a new business, the new year is the perfect time.