The UK has become a nation of startups. Small-to-medium enterprises have been nothing short of the nation’s lifeblood for generations now, with the FSB placing SMEs at over 99% of the national business population – but it is only since David Cameron’s ‘Big Society’ efforts on starting the Conservative government’s 14-year reign that start-ups became a truly vital aspect of regional and national economies.
Even today, with the threat of recession looming ever-larger over businesses new and old, startups remain a viable and even encouraged option for the nation’s entrepreneurs. Stimulating markets and economies with new innovations, particularly in newer fields like fintech, can only be a good thing for the UK’s international standing – and a good thing for those considering startups, where funding options are plenty. But how does a good idea make it from an idea to a viable product or service on the market?
Ideation and Concept
At the core of the issue is the quality of a given idea. Ultimately, successful ideas are good ideas, executed well; your idea should be well-developed and easy to market, ensuring an airtight business model and an almost-assured level of market engagement. This is not simply a job for inspiration or creativity, though.
Crafting a good initial idea requires a great deal of market research, from isolating gaps in regional markets to assessing what it is that consumers want. All of this, coupled with careful calculations surrounding the financial angle, will together build a strong case for a blossoming business.
In order to avail properly of a good idea, a startup needs seed funding. Funding can be acquired from a number of different places, but it is often the favour of other successful business owners that swings it for startup businesses. Venture capital funding is an extremely viable way to grow a business, and can also expose younger entrepreneurs to industry knowledge they would not otherwise be privy to.
A Strong Foundation
With enough funding in place, essential early costs can be more-than covered, and hence a strong foundation built. Startups are necessarily lean organisations, in order to maximise investment in outward expansion and secure a place in a given market.
In this way, usually-worrisome funding decisions regarding outsized ad spend and product development costs can actually be ballast for a newer business. Of course, startups also need to be robust enough to meet demand in the event of explosive interest, making administrative and internal concerns important to address within the first year of incorporation.
Compliance and Law
Speaking of incorporation, there are many legal frameworks to which businesses – even startups well below the 50-employee threshold to be a medium enterprise – must adhere. Tax law is an obvious consideration, but regulatory frameworks must also be considered when developing products and services in sensitive spaces.