Ditching the Day Job and Going it Alone

Although it is pretty common to moan about your boss, comparing them to David Brent and assuming you can do better, it takes time, effort and commitment to leave full-time employment and start your own small business. Though many people talk about taking the plunge, only the determined few will actually carry it through. However, Britain’s entrepreneurial climate is improving, and women in particular, are benefiting from a number of predominantly government-led schemes and initiatives. But do you have what it takes?

For a start, you need a business idea – either something that follows a tried and tested business model or an original idea that opens up a market. There are plenty of examples of how you can set up your own hairdressing business, but deciding that you are going to run a seaplane service from the heart of Glasgow to Oban takes a little more ingenuity. However, the latter is due to take off at any moment, quite literally, and your town or city may be oversubscribed when it comes to hairdressers.

Global economics and technological advances can both offer opportunities and threaten certain types of business. Facebook’s founder Mark Zuckerberg started the site as a free social network for Harvard students. After one month 6,000 people had joined up. Zuckerberg and his two roommates secured start-up funding and now have a business worth around $1.6bn. However, as China and India continue to grow as economic tigers, traditional British manufacturing businesses like engineering are feeling the pinch.

After coming up with an idea, you should also develop an objective and strategy – detailing what you are going to do and how are you going to do it. If you have decided to sell frozen baby food, then will you target small, independent health food shops or sell through the big supermarkets?

Then there is the need to secure funding, if you are to get your idea of the ground. This can be done ‘informally’, by taking out loans from friends or family, using savings or re-mortgaging the house. However, the formal funding route is to approach a bank, although they will expect you to be very sure about your facts and figures. Typically, they will also expect you to bring money into the business – usually 50:50. They may still consider you if you can’t. Most banks have a special team to deal with small business clients.

Professionalism will also stand you in good stead in the critical first year and beyond. It never hurts to look more ‘established’ and ‘professional’ that you feel; by creating a website, giving your staff (even if they are students or volunteers) different email addresses and using printed stationery. This will give customers and investors confidence – and will make you more confident as well. Last but not least, you will need perseverance and a sense of humour. Instead of laughing at David Brent are you turning into him?