Business Bolton

10 things to consider

Starting a new business is both exciting and rewarding, but it is also full of challenges. The level of commitment that you will need should not be underestimated.

The success of your business will partly depend on your attitude and skills.  This means being honest about a range of issues - your knowledge, your financial status and the personal qualities that you can bring to your new business. Commitment, drive, perseverance and support from family and friends will go a long way towards transforming your business idea into reality and will be especially important during the early days. 

This guide will help you decide whether you have what it takes to set up a new business or become self-employed.

10 things you need to consider before you start your own business...

 1. Are you committed to running a business?
The physical and emotional demands of starting up in business should not be underestimated.  It will be difficult, stressful and lonely in 99% of cases (at least for the first bit).  Starting a business is a life-changing event and will require hard work and long hours, especially in the early stages.  If you are really lucky your business will fly quickly and this won't last too long. Be prepared to give up to 6 months of hard work before giving up on an idea or seeing it really soar.

 2. Loss of company perks
Setting up your own business means that you will no longer be able to take advantage of the usual benefits associated with a permanent job. This includes the loss of "safety net" benefits such as pension rights, sick pay, paid holiday and other company perks.          

3. Pressure on close relationships
You will need the support of your family and friends. They should be aware from the outset of the effect starting up a business will have on your life and it is crucial that they are right behind you. Their emotional backing may also need to be complemented by a practical "hands on" approach. discussing these issues before they arise will help.

 4. Financial insecurity
There may be times of financial uncertainty and this may have a knock-on effect for both you and your family. For example, you may have to forgo holidays; you may have invested personal savings or used your family home as security and, in the worst case scenario, you risk losing your investment or even your home.

 5. Isolation
Being your own boss can be a satisfying experience. However, shouldering all the responsibility for the success of the business can prove lonely.  Unless you develop a network of contacts, there will be no one there to bounce ideas off.

6. Communication skills
You will be dealing with a range of different people including suppliers, staff and customers and will need a range of skills to communicate effectively with each of these.

7. Are you capable of making decisions on your own?
You can listen to advice from other people, but when it comes to making crucial business decisions you will be out there on your own.  Does the prospect faze you or are you capable of taking it all in your stride?

 8. Can you handle unexpected setbacks?
Inevitably not everything will go to plan.  What happens when you meet the odd occasion when things go wrong - do you have the grit and enthusiasm to persevere and overcome any temporary adversity?

9. Core business skills
As a business owner you need core skills eg business planning, marketing, finance, book keeping.  You should start by assessing your own skills and knowledge to identify what you need to improve on and where you can get help and advice.

10. Do you have some of the qualities needed to run a successful business?
Research has shown that there are certain qualities commonly found amongst successful business people.  A typical entrepreneur will have the following key qualities:

Self-confidence - a self-belief and passion about your product or service - your enthusiasm should win people over to your ideas.

Self-determination - a belief that the outcome of events are down to your own actions, rather than based on external factors or other people's actions.

Being a self-starter - the ability to take the initiative, work independently and to develop your ideas.

Judgement - the ability to be open-minded when listening to other people's advice, while bearing in mind your objectives for the business.

Commitment - the willingness to make personal sacrifices through long hours and loss of leisure time.

Perseverance - the ability to continue despite setbacks, financial insecurity and exposure to risk.

Initiative - the ability to be resourceful and proactive, rather than adopting a passive "wait and see" approach.

Ways to get in touch

For more information, call Farook Atcha on 01204 336222 or email farook.atcha@bolton.gov.uk