Are you starting a business this year? New year, new resolutions and whole new you – sound familiar? The winter months, particularly January, are a prime time for would-be entrepreneurs to come up with a new idea. Maybe that’s why Companies House data showed April 2nd to be the most popular date for new start-ups in 2014. It takes a while to turn ideas into action. But before you get too carried away, it is worth asking just how ready you are to make that leap. Fortune may favour the brave, but it tends to be uncompromisingly cruel to the unprepared.
Know your market
Knowing your market is not just a matter of seeing lots of potential customers out there. As outlined by Angela Munroe from Microsoft Devices, it is as much about knowing how you are going to stand out from the other people who are already pitching at those people. Anyone who has seen Dragons’ Den will have learnt that knowing how the competition works is key to differentiating yourself from the herd. There is a Small Business Quiz by Hiscox which is a great little litmus test of just how close you are to the sort of detailed, nitty-gritty knowledge you’ll need to see you through.
Learn to love the Taxman
The Taxman can be a one of your best friends in business – provided you know what he can do. Irrespective of the sector you are working in, there are allowances and dispensations that can give your bottom line a serious lift. That can be in terms of allowances for day-to-day expenses, tax breaks for capital spend, or how you choose to pay yourself. As that same Hiscox test points out, if you are prepared to view your relationship with the Inland Revenue positively they can be a key contributor to your cause.
Understand your obligations
Your business is a serious legal entity. It has responsibilities under the law to your staff, your customers and your neighbours. Understanding your public liabilities (and how to insure against them) as well as how you must handle staff issues (such as childbirth or illness) is not something you can take for granted, as explained by the Institute of Directors. Being prepared for the unexpected starts with knowing your obligations, as outlined by a number of online banks.
Exciting Times for Entrepreneurs
Office for National Statistics figure show there has never been a better time to set up on your own. In total, 4.61 million of us now work for ourselves – that’s over 15% of the UK workforce. And that proportion is growing all the time. In 1975, when records began, the figure was 8.7%. Starting out on your own represents an increasingly well-trodden route to economic security.
The Start Up Britain campaign – an initiative run by the Centre for Entrepreneurs and given Government backing to encourage start-ups – is one of a range of organizations that exist simply to give people like you a practical boost. Don’t be shy in asking for advice – you never know who you might find yourself talking to. The Chamber of Commerce or the Prince’s Trust are brimming with the business-minded men and women who have made the mistakes you are trying to avoid. The Government website www.greatbusinessadvice.gov.uk is also an excellent resource.
If that all sounds a bit exciting – that is because it is. But it is important not to get carried away with that can-do mentality before you have made sure that you know exactly what you are letting yourself in for. It is always worth asking yourself just how ready you really are.
