Starting your own business
Desperate to be your own boss? If you've got the right idea and the energy to drive it forward it's a good start. Here's what else you'll need to turn your dreams into reality.
Ten young entrepreneurs are getting help starting their own business
Produced by Lifetracks
The Big Leap gives ten young people the chance to network with each other, learn presentation skills and how to market their ideas.
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"You'll need a good idea and a lot of hard work."
First you need to make sure your business idea has a chance of success. Research your market thoroughly. Find out who your potential competitors are by looking on the internet, in your local paper or Yellow Pages. Try and talk to people already running similar businesses. You may be surprised at how much help and advice they'll be willing to offer.
What else do I need to consider?
Ask yourself what will make your business stand out from the others. This can make all the difference between success and failure. Consider how you're going to sell what you're doing. Are you confident you're going to bring in enough money to cover your day-to-day costs? Be realistic and make sure you do the maths.
Where can I get help and advice?
Business Link is a good source of information and help for people in England – if you live in the rest of the UK see the resources in the 'what next?' box. Business Link is a government-supported organisation that can help you manage your finances, explain how you go about employing people, pay the correct tax and find courses and support near you.
Probably the most high-profile source of help is The Prince's Trust. Its Business Programme provides free self-help kits, marketing support and general advice. The Prince's Trust also lists other sources of help for those in Ireland, Scotland and Wales. You might also like to try the Bright Ideas Trust. It's a registered charity that was founded by Tim Campbell, the first winner of the BBC's The Apprentice. It exists specifically to encourage and advise young entrepreneurs, but it isn't free and may ask for a stake in your business – a bit like Dragon's Den.
Do I really need a business plan?
Yes, but don't be put off. A business plan is just a document explaining exactly what your business is, what you want to achieve and how you plan to go about it. It will also convince others you're serious about trying to make a success of things and have the skills to put your ideas into action. Possible financial backers will almost certainly want to see a business plan.
Where can I get financial help?
Talk to banks, local finance providers or even friends and family. Check out our guide to funding your own business for more information.
Do I need a lot of money for equipment and premises?
It depends on the type of business you're starting, but don't get carried away thinking you have to spend a fortune on a flash website or smart premises. All you generally need to begin with is a telephone and some enthusiasm. Consider working from home if you only need a desk, a telephone and computer.
I've heard about mentors - what are they and do I need one?
A mentor is somebody who gives their time freely to assist you. It's not essential to have a mentor, but they can really help you develop your business skills. They can also put you in touch with other people who can be of assistance. Try approaching people in your area with experience in your business field and ask if they would consider being your mentor.
Alternatively, Shell LiveWire is an online community for young entrepreneurs. Registering for a free account will give you access to a range of resources, including a social network of other 16-30 year olds.
Should I be trying to start up my business during a recession?
Starting a business at any time is always going to require a good idea and a lot of hard work. Remember many established businesses are struggling at the moment, so the going will be tough for a start-up. That said, it is still possible to succeed, just check your facts and figures carefully before taking the plunge.
By Dean Gurden
What next?
- Get as much professional advice as you can. Speak to an advisor at: Business Link on 0845 600 9006 if you're in England; Business Gateway if you're in Scotland; Business Support Wales; or Northern Ireland Business Info.
- Get your business plan into shape. Start by reading the Prince's Trust's Business Plan Guide then show it to friends, family and anyone you know in a similar line of business to get their feedback.
- Consider applying for the Prince's Trust's Business Programme, a 12-week programme to help you explore and test your business idea, or the National Enterprise Academy, where you can do the UK's first full-time accredited course in Enterprise.
- Read our guide to funding your own business to find out how you can get the cash you need to get started.
- Get inspired by watching our videos of young people running their own music business, fashion boutique and club promotion company.
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