What do I need to consider first?
The ins and outs of starting out...
Is it for me?
Firstly, anybody can start up their business: business skills can be learned and it’s not just for those who have studied the discipline who can succeed. Many people who successfully run their own business come from various backgrounds and walks of life, with different reasons to start up on their own.
However, it is important that you have the momentum and determination for creating this change in your work and your life; that you have a passion for the nature of business you want to pursue; and that you have a clear vision for the business itself and what you want to achieve by it.
There are also characteristics that will help you on your way: being optimistic and self-confident will aid no end, particularly when times get hard; knowing yourself and being able to self manage so you’re on top form every day; you must be able to take (calculated) risks, but also know when to throw the towel in; and it’s useful if you’re able to identify opportunities and learn quickly in all the new situations and challenges you will be faced with.
Working for yourself has the potential to be one of the most fulfilling, challenging and rewarding careers of all. It takes a lot of hard work and long hours, but is worth the effort. If you think you have what it takes, read on…
Getting a clear picture – preparation and research
The checklist below is designed to highlight some of the key points to consider when becoming self-employed and to highlight actions you should consider taking first.
The business
The aims and the form your business takes will depend on the type of customer you wish to attract, the number of people involved in the business, whether you are seeking others to invest in your venture, and if it is to primarily maximise profit or serve a social purpose.
• What are your reasons for becoming self-employed?
• How feasible is your idea and why?
• Will your idea keep you interested and stimulate you?
• What’s the unique selling point of your business?
Your research
Before starting up, you should find out as much information as you can about the market you wish to conduct business: the customers, competitors, pricing, promotion, and distribution…don’t neglect this as besides helping you make the right decision for your business, it will be the foundation on which a successful business will be based.
• Which areas of research will you need to tackle first?
• Where will you find the information?
• Desk research only goes so far: who should you talk to?
• Who will you need to help you – inside and outside the business?
Funding
There are lots of options for financing your business, such as loans and grants, venture capital investment, Business Angels, bank lending and personal finance.
• How much money will you need to start the business?
• What resources and equipment will be required?
• What IT facilities will be necessary?
• Where will you be based and what will this cost?
• Which sources of funding will you approach first?
• How will you support yourself while starting up the business?
Practicalities
Having all for the practicalities of setting up in business established before you start will help not only to free up time to concentrate on the business itself, but also avoids surprises later down the line.
• What type of business will you run, e.g. sole trader?
• Have you found out how to pay income tax?
• What can you set against tax?
• What mandatory regulations must you follow?
• What pension arrangements will you make?
But you don’t have to do this on your own. There is so much advice and support available, no matter how far you are on your journey.