If you don’t already have an idea, 3b will help you establish whether you’re existing skill set could be the base for starting a new business. There are other options like starting a franchise or starting a business from home (i.e. selling goods via a website). Once you have a business Idea 3b will help you determine whether there is a market for your product or service and formulate a Business Plan (see section 1.3 for more information on a Business Plan)
Business Structure
3b will guide you through the most suitable legal structure to suit your business. This will depend on a lot of different factors and you should carefully consider the advantages and disadvantages of each…
- The TAX and NI (National Insurance) you have to pay
- The Records and Accounts you have to keep
- The way Management decisions are made
Some of the options are…
- Sole Trader – the simplest way to run a business. Accounts are straightforward and profits belong to you. However, you are personally liable for any debts.
- Limited Liability Company – You must comply with strict regulations, but can raise money through shareholders. The company’s finances are separate from the personal finances of their owners.
- Partnership – two or more people share the responsibilities of running the business, and take equal share of both profits and debts.
- Limited liability partnership – similar to a partnership but liability is limited to what each partner has invested and any personal guarantees they have given.
Other company formats include franchises, social enterprises and co-operatives. You should consider taking legal advice before choosing the legal status of your business.
Creating a Business Plan
Essentially the business plan describes the business objectives, its strategies, the market it is in and its financial forecasts. 3b will guide you through the process of writing the plan which will help you focus your mind on everything from where the business will be based to where you are going to find you first customer. It is also a blue print for the future development of the business that potential investors will want to read before they invest in your business.
Formulating a Marketing Plan
After writing the business plan, 3b will help you in writing a marketing plan, setting out how you will target and interest potential customers in your product or service. Section 1.4 describes market research in detail.
Mentoring
As a business mentor, 3b will advise you on how to run a business. For example, someone could come up with a new product idea but may not know how to produce or market it. Mentoring is regarded as a relationship, and it is important to have good two-way communication. A new entrepreneur can benefit from working with a business mentor by getting:
- Help with difficult decisions
- Guidance on improving the business
- Tips and hints on a wide range of issues, gained from practical experience
- Ideas for new products or ways of working
- Access to an established network of contacts with other business people
3b will not usually be involved with the day-to-day running of the business but we are likely to stay in regular contact through meetings, telephone calls and emails. The nature of the relationship may vary from being fairly casual (i.e. a monthly telephone call or informal visit) to being more formal and structured (i.e. Setting meeting agendas and business objectives to be achieved)
Not all mentors have to be formally established as such. Friends, family and business contacts can all act as unofficial mentors.
Networking
Business networking is an opportunity for business people to meet with the aim of making new contacts, getting new leads and finding ways they may be able to help each other. 3b will occasionally run Networking events which are often arranged as breakfast or after-work meetings and can involve both socialising and business promotion.
Networking is increasingly taking place online, via groups set up on social networking websites or through specialist websites such as LinkedIn. If you attend a business networking event, you may be asked to give a short, informal presentation to a small group introducing yourself, what your business does and how you think you can work with other people in the group.
At some events, the businesses taking part might be asked to put on a table-top display as an ‘exhibition stand’, for example running a presentation or sales video on a laptop, displaying products or giving out samples. Whatever the type of event, you should take a good supply of business cards, leaflets or other marketing or sales information which will help to promote your business. Hand these out or put them together as an information pack for people to take away.
There are several established business support networks for black, Asian and minority ethnic (BAME) entrepreneurs, including:
- The Asian Business Network (ABDN) – helps minority ethnic (ME) businesses to develop, by sharing best practice and improving opportunities.
- The African Caribbean Business Network (ACBN) – a business network helping African and Caribbean owned businesses in the UK.
- BME Business Women’s Aspirations Network (BWAN) works with other organisations to provide a range of activities to help foster sustainable business, including advice for new start-ups.
- The National Black Women’s Network (NBWN) offers consultation and support for black women in business.