Moving from employment into self employment can be a daunting prospect. It's hard to give up a comfortable salary, support from colleagues and the resources of a large organisation. But if you've got a great business idea, the excitement of starting out on your own may be hard to resist.
The research tells us that to succeed you have to offer the right product or service to the right people at the right price. So it's vital to do a lot of groundwork before taking the plunge. Yes it's scary – but the rewards are fantastic if you can find the right formula.
Setting your goals
Start by clarifying in your own mind what kind of business you would like to set up. Focus on your existing skills, the things you love doing and the things that people and organisations need but can't get. A surprising number of people pursue their former careers on a freelance basis – for example, solicitors, word processing operators, trainers, driving instructors, translators and editors.
Or you could turn your hobby into a business. Consider things like upholstery, interior design, gardening or picture framing – the list is endless. Alternatively, what about one of the many new services that are being provided for 'cash rich/time poor' professionals? You might offer anything from image consultancy or house search to personal training or party organisation.
Preparation
The type of business you run depends, not only on your own abilities, but also on the needs of the market. That's why it's vital to do lots of research. Investigate what your competitors are doing: look at their websites, study their brochures, talk to them, email them. Then explore what your potential customers would want. Ask friends and colleagues if they would use the service you propose to offer, what their requirements would be and how much they would be prepared to pay.
Phone LearnDirect or your local college to establish whether there is a relevant training course.
Making a change like this often has significant financial implications, so it's important to work out your minimum monthly expenditure and calculate the income you will need to survive after you have given up your salary. Don't forget that you can do all your research, planning and training without giving up your day job.
You also have to calculate your start-up costs, which may include purchase of stock, insurance, marketing, stationery, catalogue, postage etc. All this information will go into your business plan. Some banks will send you a pack to help you do this, together with information on applying for a bank loan. You will also get some tips from my article Develop a business plan.
How to achieve your goals
If, having done all the preparation, you decide to go ahead, you could consider working part time while you do your training and start your new endeavour. This minimises the financial risks during the difficult first few weeks and months of a fledgling business.
One of the most cost-effective ways of finding customers in the early days is to set up a simple website and promote it as widely as you can through the internet. You can market yourself more quickly by registering with a web directory like
Clearly Business.
The things that will help you to succeed are motivation, belief in yourself and persistence. Successful entrepreneurs do not give up when they have a setback, they simply try another way. As long as you have the right business idea, you'll find a strategy for success in the end.
If you have the resources, it is most useful to employ a life coach for a time. It will be this person's role to encourage you, remind you of your vision, share ideas and work with you to achieve your goals.
Help available
You will find that there is plenty of help and support both in your community and on the web:
Everywoman provides a variety of networking and resource opportunities for women entrepreneurs.
Business Link is a network of government sponsored agencies which deliver a range of services to people starting up in business.
Banks such as Barclays and NatWest offer services for small businesses, including advice on getting a loan.
If you receive benefit, contact your Jobcentre to find out how New Deal can help you to set up and run your own business.
If you're under 30, you may be eligible for support from the Prince' s Trust.
