Ian Whiteling - Start Your Own Business 2012

Edited by Steph Welstead
& Ian Whiteling

Start Your Own Business

Steph Welstead & Ian Whiteling

This second edition is published in 2011 by Crimson Publishing

Crimson Publishing, Westminster House, Kew Road, Richmond, Surrey TW9 2ND

Crimson Publishing 2011

Epub edition 2011ISBN: 978 1 78059 100 1

British Library cataloguing in Publication data

A catalogue record for this book is available from the British Library

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Whats in this chapter?

Its still a great time to start a business

Becoming an entrepreneur

Do you have what it takes?

If youre reading this guide then its safe to assume youre thinking of starting your own business. At www.Startups.co.uk, we believe theres no substitute for learning from those who have already founded their own ventures. For more than 10 years now weve been interviewing both new and established business owners to share their entrepreneurial insights with you. After all, what better way to learn than from those who have already overcome the myriad challenges involved with setting up a business and gone on to succeed?

So to kick things off, and before we take you through the journey of starting your own business step by step, we will take a brief look at the current environment for starting up (and explain why its still a great time to go it alone), before profiling the entrepreneurs behind four great companies Betfair, Climatecars, Huddle and Moonpig to look at how the founders turned their ideas into highly successful businesses.

So youre thinking of starting your own business? Well youve come to the right place. In the wake of the economic downturn it may not be the most hospitable environment for start-ups at present, but over the next few pages we will endeavour to argue why its still a great time to start a business. After that, we will give you a taster of whats to come in the rest of this guide, and the support and guidance we will offer you as you strike out on your own.

A recession and its aftermath can actually be a great time to start a business

First things first, lets not pull any punches or peddle any false hope its not the easiest time to go it alone. The credit crunch, banking crisis and economic downturn have made the last few years a nail-biting time for even the most seasoned of entrepreneurs. And while the UK is no longer technically in a recession, its still a tough climate for trading. The hangover of economic uncertainty and weakened consumer spending has yet to subside, and access to capital remains scarce.

But its not all doom and gloom. Starting a business is never an easy option no matter how robust the economy. In fact, with the right business model, cost management and a healthy dose of hard work, a recession and its aftermath can actually be a great time to start a business. There will be challenges, of course, but economic downturns also present many opportunities for aspiring and established entrepreneurs.

For a start, when budgets are squeezed and spending is weak, theres more scope to negotiate better deals. Whether youre looking for premises, stock or advertising space, if companies are faced with unsold inventory theyre more likely to budge on price, while firms are also generally more open to partnerships and more creative deals. Equally, when unemployment is high it is often easier and cheaper to find great people.

Starting up during or just after a recession also instils a sense of financial discipline that will stand you in very good stead for the future. While a booming economy can sometimes prop up weaker firms, if you can start and survive in a downturn, the chances are youre onto a winner. And even though funding is undoubtedly harder to source than it once was with banks and equity investors (who take a slice of your company in return for funding) more risk averse if you keep a tight rein on costs and present a rock solid business plan, its not impossible to find.

Economic downturns also present many opportunities for aspiring entrepreneurs

So dont let the economic uncertainty put you off. There will always be risks involved in going it alone, but with the right idea, planning and support you can still make your venture a success. And of course, there are also many benefits to becoming your own boss which is no doubt part of what drove you to pick up this guide in the first place. In fact, here are 10 reasons why starting your own business beats being an employee.

10 reasons to start a business

Being your own boss

If you have your own business, the only person you have to answer to is yourself. Being your own boss gives you the freedom to do things your way and implement your own plans. Of course, you live or die by your decisions, but thats whats good about it, isnt it?

Doing what you love or at least have a keen interest in

The good thing about being an entrepreneur is that you can choose what kind of firm you start up, and where. So, provided that youve done your research properly and there is a gap in the market, you can turn a hobby or interest into a profitable enterprise.

Playing by your own rules

Start your own firm and you get to set and meet your own deadlines. Of course, you wont be able to just lie in bed until 2pm you will need self-discipline. But meeting your own targets can be a huge motivation to work hard and drive the business forward.

The freedom to express yourself

If you have considered going it alone, you will have thought about how you would do things your way. You will have the freedom to express yourself and develop your concept in any way you choose. Of course, there may be financial constraints, but you will have the opportunity to be as creative as you like.

Plenty of support available

The news is full of stories about the amount of red tape and taxes that small firms have to face on a daily basis. However, over the past few years, several measures have been introduced that should make it easier to go it alone and to help small businesses through the downturn. From the government-backed loan guarantee scheme, the Enterprise Finance Guarantee (see Chapter 6), to various inner-city projects, neither the previous nor the current government can be accused of doing absolutely nothing for budding entrepreneurs. With the Princes Trust, Shell LiveWIRE and other support organisations also up and running, you should be able to secure the help needed to get you started.

Making a fortune or at least enough to live

There are countless stories of entrepreneurs hitting on a great idea, exploiting it successfully and being well on their way to their first million by the end of the year. Although the start-up process can be tough, with long hours and little money not uncommon, if you run your business well, the rewards can be huge. And, from a purely selfish point of view, you will get most of the profits yourself.

Doing a variety of things