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Take the leap: turning business ideas
into action
Read time: 3 mins | Added date: 07/05/2024
Young Brits are buzzing with new business ideas and a growing number of them are taking the opportunity to create their own start-up.
Lloyds Bank recently surveyed 1,500 UK adults who have started their own business, side hustle or are planning to start one soon.
With Gen Zs – aged 27 and under – most likely to turn their side hustle into a full-time gig; it seems young people are leading the way. Three in five (60%) are currently considering quitting their jobs to start up on their own*.
The research shows that Gen Zs want greater financial independence (45%), a better work life balance (37%) and to make the most out of their passions and hobbies (35%).
And it’s paying off; those who have started a side hustle or business are making revenues of £2,317.50 a month on average, or £27,810 a year.
*Research with OnePoll of 1,500 UK adults who have started a business or side hustle, or are planning to, carried out in February 2024.
Leaping into action
While starting a business does come with an element of risk, there is plenty of support and advice available.
We found that the top three concerns among those starting a business were centred around money and the market.
A third (33%) worried about start-up costs, while a quarter (24%) were concerned about the financial risk and almost as many (23%) were concerned there was already too much competition for their business idea to succeed.
To help kickstart your start-up in the right direction, let’s look at three important stages before putting your business idea into motion.
Plan ahead
Every business starts with a formal business plan, which can help you understand if your idea is financially viable.
Setting your expectations for sales and profitability is important. This can be used to work out how long you can survive if demand is slow at first, and whether you can afford to expand if things go well.
Many entrepreneurs often need to ringfence their own savings or source extra funding from family and relatives when starting their business.
Consider different funding options
As your business grows, you can look for other options to manage cash flow, like a bank overdraft, but remember this comes with a cost, so make sure you include that in your business plan too.
A good business plan can also give banks and other lenders the confidence to lend you money to fund your company.
And, depending on the type of business you are starting, you may also be able to access funding from government financial support schemes.
Crowdfunding can also be another option, which allows businesses to appeal for small investments from a higher volume of consumers using online platforms.
This often allows business owners to test the popularity of a product or service and engage a community around your business from the outset.
Test the market
Market research is crucial when starting a business. This allows business owners to develop and improve their idea.
1. Understand your competition and how you can offer something different.
That could mean delivering a better product or service, selling at a different rate, providing more choice, or working more sustainably.
2. Learn more about your customers.
You may want to know their age and gender, how many of them there are and what motivates them to buy the product or service you are offering.
There’s plenty of information and guides available online, but it’s essential to have face-to-face conversations with potential customers where you can, to see what they think of your idea.
3. Refine your business idea.
As your business builds momentum, it’s important to continue adapting to what your customers and the market needs.
Have you got an idea for a business and want to be your own boss?
Read more about the products and services that Lloyds Bank offers for businesses, young and old.
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