Why new business success starts with five Cs

Despite Covid and all the chaos it has brought to our lives, almost 100,000 new businesses started between July and September – this is up 5% on the same period last year.

Lockdown gave people the time to think about their skills, what they have to offer and the drive to give it a go. But what should new business owners be thinking about when setting up?

We have teamed up with Bobby Lane, chief executive of outsourcing firm Factotum (wearefactotum.com), for his five Cs for setting up shop.

CASH

Don’t underestimate the funds that you need to get started.

You need to make sure there is enough cash within the business to pay the bills and keep the wheels turning once you are up and running. You can have the most profitable business in the world but if you can’t pay the bills you will not be in business very long.

COSTS

Keep your outgoings as flexible as possible. Outsource as many of your back office services as you can, such as accounting, legal, HR and marketing. That way you can turn it on and off when you need it and focus on what you do best.

If you need premises, look at flexible space rather than tying yourself in to a long-term deal.

CONTROL

Get the right systems in place. You want to make decisions on accurate information, not guesswork.

Research systems for areas such as your till, stock control, payment processing, CRM (Customer Relationship Management) and accounting. It might be a lot easier and cost you a lot less than you think – and it’ll be money well spent. CUSTOMERS

Without your clients, you don’t have a business.

Focus on the customer journey and experience. If you don’t look after them, they will go elsewhere.

Understand their needs, identify how you are working with them and engage with them. If you are an online business you must think about how to build relationships and loyalty in creative ways.

COMMUNICATION

Internal and external communication is vital. If you have a team, make sure they know what is going on.

Communicating with customers – whether digitally, through more traditional means or via personal, socially distanced meetings – is vital, so they know you are open and what you have planned.