Six tips for running a successful business

Entrepreneurship is thriving in the UK with over 890,000 company incorporations in the year to March 2024, an increase of 11.2% compared to the same period of 2023.

Not all those new start-ups will succeed though. Running a profitable business that achieves big growth is tricky. However, if you properly plan, formulate a strategy, manage your cash flow and monitor costs, you can be one of the success stories.

Here are six key tips for running a successful business.

Have a strong business plan

Creating a plan when you launch your new start-up and continually reviewing it as your business grows will help you to achieve success.

A business plan acts as a benchmark for the performance of your company so use it to outline your strategy and objectives.

As well as helping you to make a success of your business and spot any potential pitfalls, a plan is also important when seeking funding.

The business plan should include:

• a description of your product or service
• the gap in the market your business is filling
• your unique selling points
• goals you want to achieve in the first year and later on
• market research of your target customers
• competitor analysis
• marketing and sales strategy
• profit and cash flow forecasts
• management team and personnel

An accountant can help you create a credible business plan which is particularly important when looking for business funding.

You should regularly revisit your business plan to check you are still on track. It should be updated and adjusted as necessary.

Staying on top of your strategy, planning for the future and adapting to different market and economic conditions will help you to stay on the road to business success.

Effective pricing

Good pricing is a crucial component in business success.

Before you start a business and when you launch new products or services, you should conduct research to understand your target customers’ attitude towards what you are offering and how much they are willing to pay. You can do this through running your own surveys and employing the services of a market research company. 

Understanding your costs is vital to ensuring you achieve a profit margin you are happy with. You need to know:

• direct costs: Those costs directly connected to producing a product or service such as raw materials, packaging and shipping costs.
• indirect costs: Those costs associated with running your business such as the costs of utilities, office supplies, insurance and marketing.

A third factor in effective pricing is researching what your competitors charge. It doesn’t necessarily mean you have to be cheaper than rival businesses but if you do charge more you need to make sure you are communicating enough value that your target customers are happy with the price you have set.

Pricing strategies can include upselling and cross-selling which will help you sell more products to your loyal customers. Our guide to boosting your business' profits offers some more tips.

Monitor costs and cash flow

It may be a cliche but cash really is king when it comes to running a profitable business. Keeping cash in your company allows you to stay in control of your expenditure. Understanding your costs is important in the early days of a start-up and is also something you should regularly monitor as you grow.

You need to stay on top of any activities where you are spending too much money and identify the most profitable areas to focus on. Using online accounting software can also help you to keep track of your costs in real time and tackle any issues.

Cash flow is the beating heart of any successful business, without keeping an eye on it your business will likely fail. Effective management of that cash flow is essential to achieving growth and navigating times of uncertainty.

Access funding

Many new businesses can be started with very small amounts of money, you may be able to work from home and do your own marketing and social media. As your business grows it may become necessary to find external finance.

There are various points in your entrepreneurial journey when you might need funding. They include hiring new employees, launching new products or services, investing in new equipment and moving to new business premises.

There are many different types of small business funding, but successfully accessing it can be one of the biggest challenges you face.

Understand tax and accounting

Staying on top of tax and accounting is important for business growth as the legal requirements you must follow are likely to change during your journey.

The business structure you select at the start will dictate the rules you need to follow as a start-up. As your business scales, you may decide to change your structure and recruit a team, which will add new payroll requirements.

In addition, there may become a point when you have to register for VAT which means you’ll need to submit VAT returns. There are also other government requirements you need to comply with such as Making Tax Digital.

Tax planning is important too. There are various allowances and reliefs available which can help minimise your tax liabilities.

You probably didn’t start a business to spend lots of time managing tax and accounting, so employing the services of an experienced accountant who can handle those elements means you can focus on achieving business success.

Embrace management accounts

Management accounts are not a legal requirement but entrepreneurs who use them can put themselves at an advantage. They show up-to-date financial information and other key data about a business which you can use to make strategic decisions and drive business growth.

Management accounts can also help you to monitor and adjust your costs, make your tax planning more efficient and secure funding.

For more detailed advice on the benefits of management accounts, read our guide.

How TaxAssist Accountants can help

TaxAssist Accountants can help with the financial elements for growing a successful business. To book a free consultation, call 01480 592 002 or complete our online enquiry form.

Last updated: 31st January 2025