Plan your career
Working for yourself
Many people consider self-employment at some stage in their lives. Being your own boss, enjoying the financial rewards and job satisfaction sounds very appealing. But it's a big leap, so it’s important to think carefully first.
Why run your own business?
A new business can be selling a new product or invention, providing a service or selling goods through a distribution network. Perhaps you have developed knowledge, experience and skills in your field and want to go it on your own. You may have spotted a gap in the market. You might have found the perfect solution to an everyday problem, or want to turn your hobby into a business. You could also consider self-employment if you inherit a family business, are made redundant or unexpectedly come into some money. Only you can decide if you wish to take the risk.
The advantages of running your own business
If successful you can earn a lot of money, you reap the rewards of your own hard work, and you can work when it suits you to fit around other commitments. It can give you independence and job satisfaction. You choose what type of work to do and, as you are your own boss, you make your own decisions (and mistakes), without company hierarchy or office politics.
What else do I need to consider?
- 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
- your working day will probably be just as long, if not longer, than when you were 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.
Running a successful business
To succeed in running your own business you should:
- be self-disciplined and self-motivated
- have drive and determination
- have knowledge and passion about your product or service
- be innovative, imaginative and creative
- be single-minded
- have sound business sense
- be persuasive and good at selling
- be flexible to adapt to changing market needs
- 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
- check your any training needs
- check your experience of the business area
The more you know about your market and product/service, the greater your chances of success will be.
What are the early challenges?
The most common are:
- finding funding to start up
- identifying and reaching customers
- setting the right prices
- generating enough business and dealing with competition.
You will 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.
Different types of self-employment
Many self-employed people are sole traders or run limited companies. You could also work in a partnership, a co-operative or take on a franchise. Find out more about the different types of business on the Business Link website.
What's a franchise?
A franchiser has an established business and brand name, such as a chain of restaurants, and sells the concept to people who want to run it – the franchisees. You then implement the concept or system, in this case by running another branch of the restaurant. Running a franchise can be less risky, as many of the essential items are already in place – the brand, advertising, materials, premises, etc. But you should do your homework and make sure the franchise is a genuine opportunity and not a failing business or a bad idea.
You can find out more about running a franchise from this site:
I want to go for it. What’s the first step?
When planning to launch your own business, you should get as much help and advice as you can.
Business Link is the main source of advice for starting up your own business. Business Link offers impartial business advice and a range of other services to help people who want to set up their own business. They also help recently launched small firms. Their advisers aim to be able to answer all types of business enquiry, from small one-off queries to in-depth help with business planning.
Funding the start up your own business
If you don't have your own sufficient finances to set up a business, you'll have to look for funding. You may get funding from government grants, the European Union, regional development agencies, local authorities and other organisations. A bank may also fund you if you discuss your business plan with them.
Here are just a few of the organisations offering funding or funding advice for starting up your own business:
- New Enterprise Allowance
may help you if you want to start your own business. If you've been getting Jobseeker's Allowance for at least six months you could get a mentor and up to £2000 to help set up your business
- Prince's Trust offers loans for people aged 14-30 to set up their own business
- Shell liveWIRE provides advice to people aged 16-30 to start and develop their own businesses and also runs an annual competition for young entrepreneurs with a prize of over £10,000
There are many more schemes and sources of funding, such as those aimed at:
- people in certain parts of the country, such as deprived areas
- people starting up a business in a particular field, such as the arts
Contact Business Link for advice on which funding sources you might qualify for. They also list the main sources of finance and grants on their website.
