Are you looking to (Br)exit this year?
It’s official – after 47 years, the UK has exited the European union and is now officially ‘on its own’. This got us thinking about the many hundreds of thousands of individuals who might be looking to break away themselves this year and start up their own business. Much like the UK breaking ties with the EU via Brexit, setting up on your own will mean leaving a wider organisation and both its comforts and confines, having to negotiate your own deals and generally stand on your own two feet.
In 2019, 690,763 new businesses were incorporated in the UK – and with Brexit now finally agreed, this number might be even higher in 2020.
The statistics around entrepreneurs show that there are very few ‘true entrepreneurs’, with the vast majority of people setting up a business on their own due to external forces. These include being fed up with their boss or situation – or maybe seeing an opportunity that they believe someone else isn’t maximising.
So if this sounds like you – you’re not alone!
But how do you go about taking the step out of being employed into the big wide world of business ownership? These tips should help…
Take decisive action
Toying with the idea of setting up a business is a dream that many people harbour, but not everyone has the gumption to see it through. Whilst making a rash decision is certainly not something we’d recommend, if you are truly determined to be your own boss, you’ll need to put the steps in place to make it happen, ideally alongside a set timeframe. This is likely to mean working on your business plans in the evenings or at weekends whilst still employed, and perhaps seeking sources of finance or saving up so you can begin on a solid financial footing. If there’s one thing that we can learn from Brexit, it’s that uncertainty doesn’t benefit anyone. So make your decision and make it happen.
Do your research
As mentioned above, many people start a business because they think there’s a gap in the market. But thinking there’s a gap and actually doing thorough research into it is another thing. Before you go full throttle down one route, you will want to be sure you’re on the right course. This will mean canvassing opinion – not just from friends and family, but also from potential customers. Maybe the gap exists because there isn’t an audience or client base for it!
The other area you will need to investigate properly is pricing. You will need to be sure that the business model works; ideally doing your numbers so you can work out how many customers you will need in order to deliver a sustainable income.
Find the support you need
People that set up a business on their own quickly learn that they need to gain knowledge about a lot of things!
Where you may have been able to access the skills of others – such as an accounts team, HR department, IT support, in your employed role, there is only one person to bear the brunt of these tasks when you fly solo – you! For many people however, undertaking all of these tasks is simply not an efficient way to operate. Although having a basic level of knowledge can be helpful, having to learn specialist skills is a job in its own right, and can quickly distract you from the core purpose of your own business. Therefore, decide at the outset where you may need specialist assistance, and seek a suitable company to help. One mistake people make when setting up a business is failing to account for either the time, or the expenditure needed to ensure that the everyday tasks that keep your business running can be completed.
Agenda work with new business owners to help ensure they start out on the right path. For more information or to arrange your free consultation, please get in touch.