Anita Brook is founder of Accounts Assist a growing firm of Chartered Accountants. She’s been advising small business, sole traders and consultants for 12 years
The fragile economy hasn’t hampered the UK’s entrepreneurial spirit, with recent research revealing that one in five people describe themselves as self-employed.
According to a survey published by Kelly Services http://www.kellyservices.com, enthusiasm for entrepreneurship has not been dampened by the recession.
Of the 6,000 people polled, 20 per cent said they wanted to start their own venture, with 18 – 29 year olds particularly keen on going it alone.
This trend can be accounted for by a number of factors. Kelly Services stated that it believes this coincides with businesses outsourcing non-core functions, reducing their permanent workforce and thus creating new opportunities for independent contractors.
I think that the recession has paved the way for a more even playing field when it comes to business. Customers are looking for ways to save and they’re more inclined to seek out the services of smaller independents – in the past choosing the big brand names may have been considered the safest option.
If you are thinking of starting your own business venture, here are my top tips for success:
1) Can you hack the pace?
While the rewards of job satisfaction and hopefully increased income may be great, setting up and running a business is time-consuming and at times stressful. In the early days you may have to work all the hours under the sun and without a boss breathing down your neck, you need high-levels of motivation.
2) What type of business?
If you’re going to be a sole trader, then you only have responsibility for yourself, but if you plan to take on staff, then there are a number of obligations. Make sure you know what these are, how to pay employees and how you’ll deal with their tax, before you offer someone a job. Business Link provides a step-by-step guide for anyone thinking of becoming an employer.
3) Play to your strengths
Be honest with yourself and identify what you’re really good at. Don’t try to do everything, if you struggle with words and you need a brochure, use a professional copywriter, which will allow you to spend time building your business. The money you pay out on an external service will be justified if you sell more of the product you’re offering. For one-off jobs there are a number of freelancer sites, where you can post jobs and search for suitable candidates. Freelancer.co.uk, is one example: http://www.freelancer.co.uk/.
4) Have you got enough cash?
When you start a new business it is unlikely that you’ll be making big bucks straight away, especially if you need to buy-in resources to get things off the ground. A well thought-out business plan should help sway the bank manager and there is a range of government funding streams available to start-ups. Business Link has produced a guide to the grants on offer.
5) Check the marketplace
You must make sure that what you’re offering has a place in the market. Competition is healthy and by checking it out, you’ll be given ideas as to how what you offer could be done better. Don’t ever be complacent – even once you’re established keep one eye on the ball and make sure your offering is constantly evolving and responding to customer demands.
6) Stick to a plan
Writing a business plan, even if you’re just a sole-trader offering a simple service, is crucial. It will help clarify your thoughts and flag-up any problems from the outset. If you need to seek funding, from partners or a bank, then a plan is imperative. If you don’t know where to begin, there is software available that will help you set out a plan in a structured format. http://www.business-plans.co.uk/
7) Call in the professionals
Don’t try and work it all out on your own. Talk to accountants, lawyers, banks and business advisors, many of which will give you free advice, that could mean the difference between success and failure. If you are considering becoming an entrepreneur, 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.
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