Starting Out in Self-Employment
Planning, Resources, Confidence All Key to Starting a New Business
Leaving your full-time job for the world of self-employment. Here are a few basic tips to consider when starting out at the very beginning.
Self-employment is both a daunting and challenging experience. On the one hand, it takes you out of your comfort zone. In a full-time position working for someone else, there are always other people making the important decisions and supporting you in your role. Your income is assured and at the end of the day, when you go home, you can relax in the knowledge that you've done what you need to for the day.
With a small, start-up business, the responsibility for success is fully on your own shoulders. You are responsible for ensuring that the necessary business planning, marketing and selling are in place and you are responsible for your own income. If something goes wrong, you have to sort it out and bear the consequences. The Department of Trade and Industry (DTI) estimate that over 90% of small businesses go bust within the first 6 months. There are many reasons for this, but here is a summary of the most important:
- Lack of adequate planning -- many startups fail to research the viability of their business idea. Careful planning and preparation is essential to success.
- Lack of financial resources -- many startup businesses fail because they fail to adequately evaluate and prepare for the cost of running a business, as well as supporting themselves.
- Fear of failure -- fear of failing is one of the reasons why many business ideas never get off the ground in the first place or flounder at the first hurdle. At the mere thought of failure, many people simply pack up and run to the nearest secure job they can find.
Here are some basic tips to consider when starting out on your own start-up:
- Plan and plan again. Make sure you thoroughly research your idea, and have a clear understanding of who your customer is, why they will want to buy your product or service and what differentiates you from your competitors. Put together a business plan for your venture.
- Don't try do everything yourself. Being willing to delegate to others is an essential skill for business success. If possible and appropriate, find a partner who is willing to go into business with you. Not only will this provide much needed motivational support - but having another person who believes in your business idea is already a good sign that this is not just a hopeless pipe-dream you are embarking on. A business partner can help share the workload and financial costs, sanity-check your decisions - and ideally complement your own skill set with their unique knowledge and abilities.
- Treat your venture as a challenge and a learning experience. In other words, have a positive approach to what you are gaining from your venture. Even if you do not succeed initially financially, you will still be gaining invaluable learning experience, which you will be able to take with you to your next role or venture.
- Have faith in your abilities. The wonderful thing about being human is our versatility and adaptability. Place us in a difficult and challenging situation, and we find ways to tap into our hidden resources and abilities and rise to meet the challenge. The more demanding the situation, the more it means you need to rely on your skills and abilities.
One way to think of starting up your own business is to use the analogy of a plant that is wilting for want of space, which you re-pot in a larger pot with new soil. 'Re-potting" yourself will bring new opportunities for self-development and growth, and eventually, financial rewards.
