With programmes such as The Apprentice demonstrating that becoming an entrepreneur is a viable career move in today’s world, there has been an influx of business minded individuals using their initiative to start up their own business rather than to seek employment. Furthermore, following the global economic crisis, there has been an inevitable rise in employment and an increase of university tuition fees, causing more young people to look to start up their own business than study towards a career.
Success stories like Facebook’s also entice creative hustlers to start their own business – and build wealth via entrepreneurship. Since the launch of Facebook back in 2004, its creator Mark Zuckerberg, having dropped out of Harvard, went on to become one of the world’s richest entrepreneurs with a reported net worth of over $9B.
Attractive, but you need to jump through hoops
There are up to 500,000 new businesses being launched each year in the UK, with 7 out of 10 start-ups evolving as a result of an entrepreneur’s eagerness to be their own boss. In contrast, across the pond in the US, there has been a slowdown in their small business growth statistics, with new businesses accounting for just 30% of the US employment rate in comparison to 40% of new business providing employment in the 1980s. Indeed, becoming your own boss is not an easy task but small businesses are essential for any economy with the employment and revenue they provide.
There are many reasons an entrepreneur may decide to start-up their own business, from their need for independence or for bleaker reasons such as the fact that there are no jobs available and it is the only way to get hired. Whichever the reason, you will need to find an original concept and have the financial backing and entrepreneurial know-how to get your business up and running.
Now enter costs; there are many costs that any new business will incur that need to be taken into account. You will need to consider the use of professional service people such as accountants, financial advisors or lawyers. Any new business will need insurance and business premises, whether it is a shop or warehouse or even from an office at home, simpler things such as telephone and electricity bills will need to be paid for. You will have to also consider your staffing needs which will include costs for staff training and recruitment. Additionally, you will incur marketing costs when you come to promote your business and set up your company website.
An option to explore: Buying a business
One other option for aspiring entrepreneurs is to purchase an existing business from one of the numerous business for sale websites such as Business4sale.
There are many advantages to buying an existing business, the preliminary groundwork to get the business afloat has already been completed and any teething problems have already been ironed out. With the business being already established it may be more easily trusted than a new start up when you are negotiating for finance. However, you will need to understand why the current owner is selling a business that looks financially viable. Perhaps the business has been neglected and you will need to make an overhaul of the original business plan, ensuring that staff are happy with the change of owner.
There is a wealth of support for new business start-ups as they play an important role in helping a country’s economy. The internationally known entrepreneur Sir Richard Branson, the mastermind behind The Virgin Group, is keen to promote small businesses. He has recently recommended that current strict business regulations could be minimising the growth of small businesses and therefore reducing their profits.
About the Author: This article is written by Lauren Edwards