Given the considerable uncertainty and volatility that has been triggered by Brexit, it should come as no surprise that confidence among UK SMEs has recently fallen to its lowest point since 2011.
The SBI stands at a paltry -9.9 in the fourth quarter, with this number reflecting a level of pessimism not seen since the fall-out from the 2008 financial crash. In fact, the second lowest SBI reading since 2008 (-2.9) was recorded in 2016, in the wake of the UK’s vote to leave the European Union.
While 43% of small businesses expect their performance to worsen over the course of the next three months, now is hardly the ideal time to start a business. Markets such as sport may offer a little more opportunity to entrepreneurs, however, with a number of brands currently breaking into the lucrative world of sports nutrition.
With this in mind, here are three key considerations when looking to launch a brand new sport’s venture:
1. Identify a Clear Niche and Market Opportunity
The are some business rules that remain universal across a number of markets, with the need to identify a clear niche important for all entrepreneurs.
The reason for this is simple; as this adds clarity to your business proposition and makes it easier to determine its viability.
At the same time, it also helps you to evaluate the true nature of the opportunity before you, making it possible to tailor costs and estimate your future return.
This information can be used to inform your business plan and wow investors, which may be central to the realisation of your goals and long-term commercial growth.
2. Understand your Legal Requirements
Compliance and legal understanding is another universal requirement for all aspiring entrepreneurs, it just so happens that these factors are particularly complex in the diverse worlds of sport and entertainment.
In this sector, both commerce and law are intertwined with diverse regulatory frameworks, meaning that you’ll need experienced and reputable advisors that have a detailed understanding of the marketplace.
This is why sports and entertainment law firms are among the most specialised within the legal sector, while they also tend to cover a large number of disciplines within the space.
By partnering with a proven and knowledgeable service provider, you can set your new business up for success and guarantee long-term compliance.
3. Make Marketing a Key Watchword
In such a competitive and thriving marketplace, startups have to invest heavily in promoting their brand and building a recognisable visual identity.
This will require a healthy advertising spend, and one that can help to build brand awareness and also drive recognition amongst customers over a prolonged period of time.
A prominent logo and professional graphics should serve as central elements of your marketing campaign, as they will help to distinguish your new brand and create a sense of familiarity amongst consumers.
The market leading sports brands also boast a heavy and active social media presence, and while you shouldn’t necessarily strive to compete with these companies it’s important that you focus on engaging your customers through such channels.
3. Make Marketing a Key Watchword
In such a competitive and thriving marketplace, startups have to invest heavily in promoting their brand and building a recognisable visual identity.
This will require a healthy advertising spend, and one that can help to build brand awareness and also drive recognition amongst customers over a prolonged period of time.
A prominent logo and professional graphics should serve as central elements of your marketing campaign, as they will help to distinguish your new brand and create a sense of familiarity amongst consumers.
The market leading sports brands also boast a heavy and active social media presence, and while you shouldn’t necessarily strive to compete with these companies it’s important that you focus on engaging your customers through such channels.