Striking out on your own

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STARTING a business is, for many people, the fulfilment of their dreams, but it is not an immediate ticket to untold riches and a life of idleness – far from it.

Being your own boss entails hard graft and an unswerving 24/7 commitment to your business.

Scots have always had an entrepreneurial zeal, and in the north and north-east, in particular, there have been numerous business successes – but how do you get to take your first step on the self-employment ladder and strike out on your own?

People start their own business for a variety of reasons – often, it is the result of a significant life change, including unemployment, redundancy, a change of family circumstances or coming into money.

A change in your circumstances might be an opportunity to start again or do something you’ve always wanted to do, and redundancy payments or receiving a lump sum of money can provide an opportunity to invest in a business.

But major life-changing events can be very stressful. It may be unwise to make further big decisions at times of personal upheaval, and starting your own business is unlikely to provide a speedy return on your investment and you should be prepared for a long haul.

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 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.

It’s important that you have a sound knowledge of the business you are going into, or a good business idea – this could be an invention, a new product or service, or an original idea or solution to an everyday problem.

It might also be a gap in the market that you can fill, a business related to the work you do already or an interest or hobby that you can turn into a business.

Whatever your idea is, you’ll need to be sure that it fits with your needs as an individual, as well as being a viable business proposition.

Being your own boss can give you the choice to work more convenient hours – such as working around your children’s school hours and holidays – and you will be the one in the driving seat making the decisions that enable you to lead your chosen lifestyle.

If your business takes off, the pay-off in financial and lifestyle terms can be huge.

On the downside, you will probably have to work longer hours, and you may find it difficult to separate work and home life, especially if you run the business from home – which can put extra demands on your family.

Some business owners also suffer stress when things are not going so well, and perks such as pension schemes, holiday pay and sick leave will suddenly become unavailable.

Many people who set up their own business decide to work on a part-time basis to enable them to balance their home and working obligations.

Some people decide that the safest option is to continue with their current job while setting up their business. Legally, you don’t have to tell your employer that you are setting up a business, although there may be a clause in your contract preventing you from doing other work.

You might want to ask your employer for more flexible working arrangements. These could involve reducing or rearranging your existing working hours.

When you become self-employed, issues such as changes in national insurance contributions, requirement for VAT registration and which business bank to choose are among a range which will have to be addressed, and you should canvass as much help and opinion as possible.

The telephone Helpline for the Newly Self-Employed – 08459 15 45 15 – is open from 8am until 8pm Monday to Friday, and from 8am until 4pm Saturday and Sunday.

You can also get free professional help from your local enterprise agency – find your local enterprise company on the Scottish Enterprise website – or discuss your ideas with friends and colleagues, particularly those who know about the business.

People under 30 can get help with setting up their own business from the Shell LiveWIRE scheme, or if you have a good idea for a business but can’t get funding, the Prince’s Trust scheme could help you by offering a low-interest loan, a grant or a mentor.

If you’re on jobseeker’s allowance and want to get back into employment by starting your own business, find out how the New Deal can help you by calling the New Deal Helpline on 0845 606 2626.