Starting a new business is both exciting and rewarding, but it is also full of challenges. The level of commitment that is needed 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.
The physical and emotional demands of starting up in business should not be underestimated. Starting a business is a life-changing event and will require hard work and long hours, especially in the early stages.
There can 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.
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.
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.
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 of.
You will need
- a self-belief and passion about your product or service - your enthusiasm should win people over to your ideas.
- a belief that the outcome of events is down to your own actions, rather than based on external factors or other people's actions.
- the ability to take the initiative, work independently and to develop your ideas.
- the ability to be open-minded when listening to other people's advice, while bearing in mind your objectives for the business.
- the willingness to make personal sacrifices through long hours and loss of leisure time.
- the ability to continue despite setbacks, financial insecurity and exposure to risk.
- the ability to be resourceful and proactive, rather than adopting a passive 'wait and see' approach
- have a good grasp of cashflow planning, credit-management and maintaining good relationships with your bank and accountant.
- the ability to make long-term plans for product development and identify the people, materials and processes required to achieve them. In order to make such plans you will need to know your competition and your customers' needs.
- the ability to managing recruitment, resolving disputes, motivate staff and managing training. Good people management will help employees to work together as a well-functioning team.
- The ability to assess the strengths and weaknesses of your business and plan accordingly.
- A sound marketing approach will help you set up and oversee sales and marketing operations, analyse markets, identify selling points for your product and following these through to market.
- The ability to identify suppliers and positively manage your relationship with them. - You need to be able to identify potential customers and their individual needs, explain your goods and services effectively to them and convert these potential customers into clients.