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Entrepreneurship

Maybe you’re excited by the challenge of working for yourself, or think you could do a better job than your employer!

Perhaps you’ve become interested since seeing the recent TV programmes about being an entrepreneur: The Apprentice?

Many people consider self-employment at some stage. Being your own boss, enjoying the financial rewards and job satisfaction is very appealing. But it's a big leap, so it’s important to think carefully first. Here we answer some of the most common questions about starting up your own business.

A new business can be selling a new product or invention, providing a service or selling goods through a distribution network.

Here are some of the main reasons why you might want to start up your own business:

• you’ve developed knowledge and skills in your field and want to go it on your own
• you’ve noticed a gap in the market
• you’ve had an innovative idea – a solution to an everyday problem, for example
• you want to turn your hobby into a business.

You might also consider self-employment if you inherit a family business, are made redundant or unexpectedly come into some money.

if your business is successful you can earn a lot of money

• you can work when it suits you – around your children’s school hours, for example
• your independence gives you job satisfaction
• you choose what type of work to do
• you are your own boss and you make your own decisions
• no company hierarchy
• no office politics
• no worries about becoming unemployed
• you reap the rewards of your own hard work.

Other considerations:

• you’ll lack the support and safety of having a large organisation behind you
• businesses can be vulnerable in the early stages
• in the early days you might not make much money
• irregular income
• no employer benefits such as paid holidays, sick pay, pension scheme
• the buck stops with you – you may have to make decisions without advice or support
• you will probably work just as long hours, if not longer, than you would being an employee
• it might be lonelier – no socialising with company colleagues.

While it’s important to consider the risks and challenges ahead, don’t let these put you off. If you’ve got a good product or service and the skills and aptitudes to run a successful business, there’s no reason why it shouldn’t be the best move you’ve ever made.

If you’re not quite ready to take the plunge and start your own business full-time, you could begin by running it part-time. You could continue working in your present job while trying to get your business off the ground.

To succeed in running your own business you should:

• have drive and determination
• be innovative, imaginative and creative
• be single-minded
• have sound business sense
• be persuasive and good at selling
• be self-disciplined and self-motivated
• be flexible to adapt to changing market needs
• have knowledge and passion about your product or service
• be prepared to take calculated risks
• have the self-confidence to take responsibility for your own decisions
• have good organisational skills

Things to consider before setting out:

• research your target market
• identify your competitors
• know your product or service
• get up to speed with legislation or regulatory requirements – insurance, health and safety, employment law, patents, VAT, National Insurance, PAYE, planning and building regulations, environmental regulations
• have you any training needs?
• have you got experience of the business area?

The more you know about your market and product/service, the higher your chances of success will be.

You might need to learn bookkeeping, time management, or learn how to use a computer package. You could also do a course on starting your own business, which cover many of the skills you might need.

Challenges that might be confronted when starting up are, the most common of these are:

• finding funding to start up
• identifying and reaching customers
• setting the right prices
• generating enough business and dealing with competition.

Also, you’ll probably need financial, emotional or practical support from your family and friends. They’ll need to be patient and supportive, and understand if you work long hours or have to scale down your outgoings.

Source: www.learndirect.co.uk