In January people often reflect on the previous year and look at things they would like to change. Those in full-time employment in the UK spend more waking hours at work than anywhere else, and that’s why it’s vital to do something you are passionate about. For me, this has always been entrepreneurship: I love the thrill of running my own business, the excitement of the challenges and the problem-solving. It’s what gets me out of bed in the morning.
If you have always wanted to be your own boss, there has never been a better time to start your own business and make 2015 your most fulfilling year yet. Instead of talking about taking the next step, why not set yourself a timescale and think about some key decisions, spend time developing your idea and see if your business ambitions are truly viable.
Are you suited to self-employment?
Before you do anything else, you need to be really honest with yourself and ask: am I truly cut out to start my own venture? You need to be calm, clear-headed and rational. When thinking about starting a business passion and enthusiasm are essential but you need to think with a business mind at every stage. You have to take a step back and try to be non-emotional when deciding if you’re ready to go it alone. Try and look at it in the same way you would if you were advising someone else. The best advice I can give is to essentially interview yourself. Would you back you to lead a company?
Is your business viable?
You probably already have a business idea in mind: most ideas come from a problem you’ve come across that needs solving. Your idea doesn’t have to change the world. The most successful business ideas are often simple, ingenious tweaks on an existing way of doing business, but delivering it faster, better, cheaper or more easily. You need to find your unique selling point. What sets you apart from your competitors?
Research and planning
Once you feel confident about your idea, research and make sure there is a market for it. Give your idea a tough grilling. Ask yourself if your idea is fulfilling a genuine customer need: will somebody really want to buy your product or your service? And, if so, does the price you plan to offer it at match what they would expect to pay?
Make sure your business appeals to potential customers, take time to understand their wants, needs, concerns, opinions, behaviour: only then can you build a business that meets their requirements.
Don’t be paranoid. Share your ideas. Tell as many people as you can. Ask for feedback and you’ll be amazed what you can learn. Somebody will give you a piece of advice or the one angle you hadn’t thought of that could make all the difference between success and failure.
Where can I get support and funding?
Once you have spent time analysing yourself, your business idea and potential customers and feel that your business will earn money, you need to find finance to help get it off the ground. Support and mentoring are just as vital in making your business a success. This is one of the main reasons I wanted to be chairman for the government-backed scheme Start Up Loans. We offer finance and mentoring for individuals who can’t get funding through normal channels, such as banks, or don’t have family or friends they can borrow from. Banks are still cautious about lending to startups, but self-employment is at an all-time high and is helping the economy get back on its feet. Start Up Loans isn’t the only option. There are also various crowd-funding platforms and “angel” investment is another avenue to consider.
Make sure you seek as much expert outside advice as possible: it’s no good asking the opinion of a friend or family member if they have no idea about your sector. Seek advice from others in your industry. Businesses that have mentors are far more likely to still be trading after five years than those that don’t.
Read more
Make the most of your business mentor
How to master the art of pitching your business
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