Starting up and running a business is a risky thing to do and is clearly not for everyone. There are a large number of factors you should take into consideration before deciding to go down this road. Being your own boss can be hugely rewarding both financially and by way of providing yourself with a real sense of personal fulfillment and satisfaction.

You should have the specific technical skills and experience relating to the core functions of your planned new business, an overwhelming interest in the subject and the right personal characteristics to withstand the risks involved and the pressures you will face.

Abilities & resources
Your business idea will involve either offering a service(s) to people who will use it in a personal or a business-to-business capacity or a product(s) to sell. You will need an in depth knowledge and belief in what you are offering to make your clients or customers want to use your service or buy your product. Only by knowing your subject inside out, will you gain the confidence to be able to sell and grow your business.

Qualifications, Experience & Skills
You should either have a qualification or experience of working in your chosen field. You may feel nervous at the start but both these attributes will boost your confidence considerably which will grow as you go along.

If you feel unsure about setting yourself up as a “specialist or professional” then you should consider either investing in more training, gaining more qualifications or working as an employee and learning more on the job before attempting to set up on your own.

Finance
Unless you are blessed with rich friends or family, you will probably have to borrow money to get your venture of the ground. The first port of call here are the High Street Banks. It is imperative to present yourself and your business idea as clearly, concisely and convincingly as possible, so you must prepare a Business Plan.

If you need help to do this contact Business Link and they will put you in touch with an adviser at your nearest Enterprise Agency. In many instances, a certain amount of the advice they will be willing to give you is free. The Small Business Manager at your Bank could also help with the preparation of a Business Plan if you do this before formally asking for a loan.

The more money you need to finance your project the greater the risk you will be taking on. If your business fails you could lose your house (if you are lucky enough to own one), or if your parents or relatives act as your guarantors, they could lose theirs. This is why it is so essential to produce a business plan which will go a long way to reassure everyone involved, especially yourself, that your venture is a viable proposition.

You should also consult an accountant about your business idea and they will advise on such matters as budgets, cash flow projections, a business plan, booke keeping, marketing plan and accounts and management procedure.

Personality
Not everyone is suited to becoming a budding entrepreneur; Feelings of isolation are something that many people working for themselves experience. There is no office comradeship and no one handy to use as a sounding board.

Joining networking associations and clubs can overcome this to a certain extent, but at the end of the day every function needed to run the business and all decisions that have to be made will be down to you so a degree of ‘toughness’ is a must.

Family
If you are planning to start your own business it is crucial that you discuss your plans with those people who will be most affected by your change of status. You really do need to make sure that they are behind you, and will support and respect you in your new role. If there is friction in the family, life could be very difficult indeed.

Motives
What is motivating you to enter the field of self-employment? Make sure it is not because you cannot think of anything else to do. Why does it appeal to you? Certainly it will provide you with independence and to some extent, flexibility and you will be in control. On the flipside, you will almost certainly have to work long hours, and if things go wrong the responsibility of putting them right will be entirely down to you.

People often talk about the three Ds when they refer to the attributes needed to be a successful business person “Dedication, Determination and Damned Hard Work.” If you succeed, and there is every good reason to believe you will, you will be rewarded by great feelings of satisfaction and a huge sense of achievement, not to mention, we hope, eventual financial gain.

Age
Age is no barrier to starting up a business of your own. However, there is one advantage that older people have over you which is not your fault and about which you can do nothing. Simply put, because they have lived longer they have a greater wealth of experience to draw on. Since a “job for life” is largely a thing of the past they will probably have tried out more types of work and have more resources from which they can choose.

Even though you are comparatively young you will have gained life skills already that are an addition to the ones you have learned at school and at college or university. Helping your parents or friends do things in the house or garden, playing sports, participating in out of school activities, travelling abroad or in this country and working in a wide variety of jobs or doing voluntary work will all have provided you with the skills needed for success. Could any of these experiences form the basis for a business idea?

You will also have what are known as transferable skills, which can be used in more than one type of work. Typing and computer skills are prime examples of this.

Business Skills
Business management skills can be learned either by enrolling on an MBA, an MA or similar course. An easier path – and considerably less expensive – is to learn the desired skills on the job working as an employee in a well-performing and well-managed company. You need to be organised and capable of carrying out all the administration work required to manage your business.

Many businesses fail because their owners spend all their time working ‘in’ their business rather than ‘on’ it. It is no good just having an in depth knowledge of your product or service if you are not able to spend time getting out there and selling. Convince people what a fantastic service you are offering or product you are selling, and that no one can possibly do without them.

Market Research
It goes without saying that this is essential before launching any business. You must identify a gap in the market and make sure there is sufficient demand for your service or product. You should study the products or services of your competitors and be convinced that you have the qualities needed to beat them at their own game. If there are no competitors you have to ask yourself why this is – does it mean there is no demand for your service or product or could it mean that no one has had your brilliant idea yet. Talk to family and friends and find out what they think about your idea. You can usually sense the difference between real enthusiasm, conviction and a lukewarm reception.

For further Information:
Business Link (England)
Tel: (0845) 600 9006
www.businesslink.gov.uk
Business Eye (Wales)
Tel: (0845) 796 9798
www.businesseye.co.uk