By Nicky Larkin, Goringe Accountants
With multiple job cuts across the board, the future looks uncertain for much of the UK’s workforce. For some it’s undoubtedly a worrying time while for others it’s a good time to reconsider their career and start up a business. Some of the world’s greatest businesses, such as IBM, Disney and Fedex were started during a recession.
For those that are considering launching a business here are 10 top things to consider.
- Choose something that you enjoy.
- Consider the structure.
- The importance of market research.
- Decide what your perfect customer looks like.
- Structure your pricing carefully
- Choose your employees wisely
- Effectively fund the business
Savings - perhaps from a redundancy – put into the business as capital, as a loan or a mix. As with any investment you have to decide how much you’re willing to risk.
Investors – they may also offer other services besides cash and they will have a vested interest in your business to make it a success. This money doesn’t also have to be returned. Think carefully about how much equity you’re willing to give up to investors and don’t overinflate the value of your company.
Debt - but this is particularly difficult for start up’s because without security it may not be possible to borrow traditionally. You could look to friends or family to borrow from, but this can be risky.
Alternatively, local Enterprise Partnerships (LEPS) or public bodies like Innovate UK are good for potential options and grants, particularly if you have an innovative product or service.
- Select some trusted confidantes outside of the business
- If you fail to plan you plan to fail
- Think about how and when you want to leave the business.
Building a business is hard work so really consider is this what you want to do? If you aren’t fully committed it is much better to stay as an employee. But if this is your passion, go for it, but be sure to find time for your family and friends and exercise. You need to keep healthy to keep your business healthy.