Benefits of CPD for Entrepreneurship in Business Startups

Starting your own business can be exciting and rewarding, but for many it is also a daunting prospect. It can seem overwhelming navigating the steps required to successfully start a business. Although all businesses are unique and face their own specific challenges, there are some key considerations necessary in a business startup. The following article aims to provide some helpful guidance for those looking to start a business and identifies the fundamental steps necessary. It also explains how Continuing Professional Development (CPD) can support entrepreneurs in starting and growing a business.

The benefits of entrepreneurship and starting a business

According to the most recent 2023 statistics from the Department for Business and Trade, there are 5.6 million private sector businesses in the UK. 5.51 million of these are classed as small businesses – this being defined as a business that employs between 0 and 49 employees (1).

With rapid changes in technology and the global market, there are increasing opportunities for entrepreneurship. Within this landscape, there are also a variety of key benefits starting your own business can provide:

• Freedom - Running your own business offers a level of freedom and flexibility not always found in traditional employment. It allows you to set your own schedule, make decisions and potentially work from anywhere.
• Be your own boss - As your own boss, you have the final say in decisions - from strategic direction to the day-to-day operations. It is an opportunity to implement ideas and see them come to fruition.
• Follow your passions - Entrepreneurship opens the opportunity for your passion to become your livelihood. Building a business around a passion, not only makes the work more enjoyable, but often leads to greater innovation and dedication.
• Financial Independence - Running a business offers the potential for earnings based on the success and growth of the enterprise. This enables business owners to reap the benefits of their work directly - offering not only a stable income but also the opportunity for wealth creation.

However, a business startup can also present some challenges including:

• Financial risk - Starting and running a business can involve significant financial risk. There is the initial investment to get the business off the ground, followed by ongoing expenses. Cash flow can be uncertain, especially in the beginning or during economic downturns.
• Diverse skillset requirement – Being an effective entrepreneur involves dealing with multiple tasks and challenges - sometimes simultaneously. This requires quick learning and adaptability. It demands transferable skills beyond a product or service itself, such as leadership and communication.
• Isolation - Entrepreneurship can be lonely. Without the built-in network of colleagues that comes with traditional employment, you may find yourself working long hours in isolation.
• Balancing work and life - Running a business presents the challenge of setting boundaries between work and personal life. The business can consume your thoughts and time, making it difficult to disconnect and maintain a healthy work-life balance.

Despite these challenges, for those suited and able to adapt to the requirements, starting and running a business can be hugely fulfilling and financially rewarding. There are more tips on the skills needed to start a business in our previous article here.

Key steps to a successful business startup and how CPD helps

There is much to consider in starting a business. Continuing Professional Development (CPD) can be a great means of gaining the valuable skills, knowledge and experience that help navigate the journey of business startups. CPD combines different methodologies to learning, which includes training courses, seminars, workshops, conferences, events and online eLearning programs. 

All businesses will have their own unique challenges and opportunities, but there are some key steps needed for any business startup. The following identifies the fundamental requirements for starting and growing a business:

Business idea

The most important step and basis of starting a business is a business idea. This can take many forms. It could simply be the desire to turn an individual passion or hobby into a business venture. Sometimes a business idea will be recognising a market opportunity for a new product or service - or seeing the potential to provide an existing service cheaper or in a fresh way.

A new business idea is not necessarily about originality. Many individuals will have experience working for other businesses where they have seen mistakes or failure to provide a good service. They use this as an opportunity to offer the same product or service better – thereby bringing their own previous knowledge and industry expertise to the business idea.

Market Research

Having established a business idea, it is important to thoroughly research the market for this idea. Market research can be conducted in many ways. It could involve conducting online research or engaging with social media, talking directly with both industry competitors and their customer base, or going to rival stores to assess the competition. It is important to build a strong network at this stage to gain as much understanding as possible. Participating in CPD learning and events can help build your network and knowledge base.

The are a few key questions to be answered during market research:

• Is there a demand for the product or service?
• Who will be the customer target market?
• What is the competition in this market?
• What will be your unique selling point (USP) that distinguishes you from the competition?

Business Plan

Once established that a business idea is achievable, it is necessary to create a business plan. A business plan will provide clarity, identify any issues, and be important as the basis for securing funding for any venture. Engaging with CPD in areas such as business strategy can help develop the skills needed to create an effective business plan.

A business plan will incorporate the following elements:

• Executive summary – This is an overview of your business in a concise, short form. This helps attract potential investors and defines the overall mission of your business.
• Describe product or service – A profile of the products and services you will offer. The description will include how they fit in the market against current competition, how they are unique and how they will be priced.
• Market analysis – This will be a summary of the market research previously conducted. It will define the condition of the current market and why your product or service will stand out and be successful.
• Financial planning – This will set out expected costs and budgeting. It anticipates monthly and annual expenditure and will identify operating costs – such as premises required or the purchasing of essential equipment.

Finance

Creating a business plan will help establish the best means of funding your venture. Depending on the nature of the business and personal circumstances, there are several potential means of securing funding for a business:

• Personal savings
• Funding from friends and family
• Government backed small business grant
• Government backed start up business loan
• Private bank business loan
• Crowdfunding

Register business

Once funding is secure it is necessary to decide on a business structure and officially register the business. The choice of business structure will depend on the nature of the business and the financial plan. These are the most common types of business structure:

• Sole Trader - A sole trader is an individual who is self-employed. In this business model you are the exclusive owner of your business and keep all the business post-tax profits. However, you will also be solely responsible for any debts.
• Partnership - In a partnership, control over the business and responsibility for debts and obligations is shared between you and your partner or partners. This includes sharing the risks associated with the business, any profits or losses, and the bills associated with running the organisation.
• Limited Company - As a limited company, you will be legally and financially distinct from your business. A limited company will have shares and shareholders and can keep any post-tax profits. As the business is legally separate you are not personally liable for any debts.

Set up business

This stage will involve establishing where your business will operate. The business may be run from your own home or may require new premises. New premises will involve key decisions such as ideal location and commercial rent costs.

A business website will also be needed at this phase. There may also be a need to invest in necessary equipment or potentially build a team and hire staff.

Promote the business

With everything set up, it will now be the crucial phase of promoting and marketing the new business. The best marketing tools will depend on factors like the nature of the business, target audience and overall budget considerations. Some of the marketing options may include:

• Digital marketing – website articles, online pay-per-click and web advertising
• Offline marketing – posters, billboards, TV advertisements
• Email marketing – sharing content and promotions via email
• Social media marketing – utilise platforms like Facebook, Twitter, Instagram and TikTok
• Affiliate marketing – collaborating with partners who advertise your products or services

CPD can be invaluable in developing the skills and knowledge to successfully promote your business. CPD learning will be available in all aspects of marketing, as well as offering wider opportunities to improve overall business and industry knowledge.

Find CPD courses for entrepreneurship and business startups

The CPD Certification Service works with a wide range of providers offering accredited CPD learning which may be beneficial to individuals looking to become entrepreneurs and start a business. All courses and training on our website have been reviewed, recognised and certified for meeting the required industry standards. Active CPD can prove a hugely valuable tool when navigating the journey of starting and growing a business.

Within the CPD Courses Catalogue, there are a comprehensive number of business-related online courses, educational events, eLearning programs, workshops and seminars. These cover all the key areas of importance in starting a business – from courses in digital marketing to learning in business strategy and financial planning.

To find out more about a particular CPD course listed on our website, complete an enquiry form and the details will be sent directly to the relevant CPD provider.

How to become an accredited CPD provider

We hope this article was helpful. Established in 1996, The CPD Certification Service is the world’s leading and largest CPD accreditation organisation working across all industry sectors. If you are looking to provide training courses, seminars, workshops, eLearning or educational events that may be suitable for Continuing Professional Development, please visit the Become a CPD Provider page or contact our team to discuss in more detail.

Alternatively, if you are looking for a free online CPD record tool to help manage, track and log your ongoing learning, as well as store your professional training records and attendance certificates in one simple place, go to the myCPD Portal page.

REFERENCES

(1)   https://www.gov.uk/government/statistics/business-population-estimates-2023/business-population-estimates-for-the-uk-and-regions-2023-statistical-release#:~:text=there%20were%20estimated%20to%20be,of%20the%20total%20business%20population