With job loss rife in the past few years, many of us have been forced to re-evaluate our careers.
While risky, this might just be the time to follow a dream and start your own business.
Recession is obviously not a good thing, but in some respects the breakdown of big business has created a more even playing field for start-ups. A shake-up in confidence of trusted brands and a desire to save money means people are more inclined to look elsewhere for products and services. For canny entrepreneurs, a bad situation could just be turned into a lucrative one.
Before jacking in your day job you must be sure (as you can be anyway) that you’ve thought everything through. Not everyone is cut out for self-employment; it takes a great deal of discipline and you need to be prepared for some stressful times, plus the prospect of working evenings and weekends – particularly in the early stages.
Don’t choose a business concept that you have no hope of following through, however much you might like the idea
1) Choose a business idea that suits you
We all have dreams – some are realistic and some aren’t. Don’t choose a business concept that you have no hope of following through, however much you might like the idea. Play to your strengths and consider getting other people in to help for the bits you’re not so confident about.
2) Get some cash together
Unless you’re very lucky, it’s unlikely that money will be flowing straight away. Save as much as you can and if you need to ask the bank for a top-up make sure you’ve got a well thought-out business plan. There’s also a range government funding streams available for start-ups. Visit Business Link for more information.
3) Do your research
Check what you’re offering has a chance of selling and that you’re not joining a completely saturated marketplace. Look at what the competition is doing and learn from what they’re getting right (and wrong).
4) Stick to a plan
Big or small, every business needs a plan – to clarify your thoughts if nothing else. If you need to seek funding, from partners or a bank, then a business plan is imperative. Use it as a guide and refer back to it as you go along, to help stay on course and meet specific goals.
5) Seek advice
Before you take the plunge talk to as many people as possible - friends, family, fellow business people and most importantly, professionals. Banks and business advisors are all there to help and much of this advice is free. Employing the services of a reputable accountant will ensure you don’t pay too much tax and help alleviate any stresses at the end of the financial year.
Going it alone is not an easy choice, but if you put the hours in and hit on a good idea, then the rewards of a real sense of purpose, being your own boss and hopefully making lots of money, are definitely worth it!
