Self Employment

Why self-employment?
By Shell LiveWIRE

Why people set up their own business
Resources needed for setting up your own business
BRIGHT ideas - what makes businesses work
What makes an entrepreneur?
Where to look for a business idea

Why people set up their own business

For many people, starting a business is the best - if not only - employment option available. Surveys have shown that in the UK this is expected to be the greatest area of employment growth in future years, building on the increase experienced over the past fifteen years. This growth has occurred for several reasons:

  • an increasing recognition of the value of small/medium sized businesses to the economy
  • changing patterns of work and downsizing of large organisations, creating opportunities for small niche businesses
  • more and more graduates see starting their own business as a valid career choice
  • an environment which is encouraging enterprise
  • increasing media interest and thus more general interest

The experience of running a business will be something that people can use in a variety of ways:

  • you will acquire additional skills and improve your chances of a job with an employer
  • it offers a career alternative at different periods of your working life
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Resources needed for setting up your own business

The resources needed can be classed under five headings:

  • expertise in enterprise - business/technical skills - training courses, legal knowledge, money management
  • financial - banks, grants, loans
  • personal support - agencies, counsellors, contacts
  • premises - renting, leasing
  • equipment - renting, leasing, etc

Expertise
Most people, even if they have suitable vocational skills, will still have to learn appropriate business skills. A range of training courses exists; indeed, going on a course can be one way of deciding if starting a business is really the right route for you.

Local Enterprise Agencies will be able to help either directly through their counsellors or by calling in expert help as required.

Other local groups, such as youth clubs, may also be able to help, either with expertise or with the loan of equipment. Some organisations lend out tools, for example. Others may have computing facilities available.

Personal support
People will often look to their business counsellor or careers officer or adviser for a great deal of support and encouragement, particularly if they have little support from their family.

Financial
In addition to the usual range of loans and grants that may be available to anyone starting in business, there are often specific funds available which young people might tap.

Keep an eye open for competitions and award schemes. Prizes often include help and advice, as well as cash.

Premises
In many areas there are 'managed workspaces' which are able to provide rented space, often partially subsidised, and a range of common services which may include typing, photocopying, telephone answering, etc. Often counselling and other support services are also available on-site.

If this sort of space is not available, or is inappropriate, then can the business be started from home?

Equipment
Instead of splashing out lots of money on brand new or even second-hand equipment that you don't use very often, why not hire or even borrow? Check with the library or ask your business counsellor if there is a community resource centre in your area.

Perhaps you could hire some of your equipment out and raise lots of money. Why not form or join an equipment pool? top

BRIGHT ideas

Many people dream of being their own boss, but they aren't sure what they could do. All they need is a good business idea and they'll be set for life - something like cat's eyes, Trivial Pursuit or traffic cones. Shame someone else thought of those ones first.

Business ideas need to be BRIGHT in order to be worthwhile:

Business orientated - the whole point of the exercise

Realistic - they must be, to succeed

Innovative - to do something new

Genuine opportunities - your business must fulfil an identified need

Honest - it goes without saying

Timely - be sure you haven't missed the boat top

What makes an entrepreneur?

What's your image of someone who runs his or her own business? Cowboy, superhuman, grafter, millionaire, shark?

You don't have to be a certain type of person or have particular qualifications to start a business. It takes a mix of qualities to succeed, a bit like being several different people at the same time.

Here are a number of skills that may be needed to run a business. Which do you think you have?

Manager - responsible, decision maker, leader, planner

Salesperson - winning customers, understanding people, knowing how to talk to them, winning confidence

Entrepreneur - identifying new business opportunities, wanting to succeed, a calculated risk taker

Administrator - keeping accounts, organising paperwork

Worker - as you're unlikely to have many employees to start with, could you do all the work yourself - cope with long hours and some pressure?

Learner - keeping an open mind, always prepared to learn

Thinker - coming up with bright ideas, problem solving

Different businesses require different balances of these skills. If you have one or more business partners you should agree who does what best. If you're lacking in a particular area you can get support from a specialist adviser. Shell LiveWIRE can help you find one. You may be able to get training to gain the skills you feel that you need. top

Where to look for a business idea

Look at yourself
What are your skills? What can you do? What do you know? How can you use those skills and abilities to start a business?

Think about jobs you've had before
Perhaps you have worked in a bar, or a shop, or maybe you have a trade such as carpentry and joinery under your belt. Have you worked in sales, or in a call centre? How can you use those skills? How can you adapt what you know and can do to a different business idea?

What are your hobbies?
What do you do in your free time? Perhaps you write, or read, or cook, or sew, or work with wood or metal, or enjoy photography. Just because you do something for recreation does not mean it would not form the basis of a good business. People may be willing to pay for you to do what you enjoy.

What are you like as a person?
Business ideas may stem from the type of person you are. Perhaps you are outgoing, or logical, or a consummate salesperson. What business ideas does your personality suggest?

Could you work from home?
Whatever you do, is it something you could do from home? Have you got storage space, an office or workroom, and a computer or phone - or whatever else you might need? Many opportunities exist for people to work from home and, particularly if you have children to consider, that might be the answer for you.

Look at other people
Do people you know have any business ideas? Talk to your friends and family - see what they think. They might be able to see talents in you that you didn't realise you had. Or perhaps they've got an idea that they wouldn't follow up on themselves but that might suit you. The only way to find out is to ask them.

Do other people make goods you could sell?
Many businesses are based on the principle of selling on goods made by other people. Perhaps you could act as a distributor for someone wanting to break into the UK market, or perhaps specialise in a niche market.

Look at your local environment
What goods or services do local people need? What do you hear people complaining about? What do you complain about? Meeting a community need could give you the basis of a profitable business.

What about tourism or leisure?
People need leisure pursuits. They work hard to earn their money and like to spend at least some of it having fun. Are there any openings for tourism or leisure in your area? Check out the local tourist board for some ideas.

Look at other ideas
Can you do something differently? There really isn't very much new under the sun - so can you put a new twist on an existing idea? Keep your eyes, ears and mind open and see what opportunities exist.

Can you copy somebody else's idea?
No, we're not talking about plagiarism or business espionage here, we're talking about enterprise. Perhaps you see something abroad that you think is a really good idea, but no-one does it here (or vice versa, if you want to live abroad). Be vigilant and creative.

Look at other businesses
What goods or services do other companies need? What do local companies routinely require to keep going? The chances are they'll be able to get major things supplied as a matter of course, but what about things they need day to day? Small businesses whose staff get a relatively short lunch break might appreciate a mobile catering service, for example. Think of how you can make their lives easier and you could be on to a winning business idea.

What do other companies buy in from elsewhere?
What is required by companies and public bodies that is not currently available locally? Can you fulfil that need? If so, you might find that they would prefer to deal with someone geographically closer. Think also about what is bought in from abroad. How are your language skills? Have you knowledge of another country or countries? Could you act as an import agent?

What businesses are up for sale?
Check out the local paper to see what is on offer - but check out also why a business is being sold. Beware of anything struggling to make ends meet. While that doesn't mean it's a definite no-no, you need to be aware of the circumstances surrounding the sale.

Look at the world around you
Can you come up with a business idea for something new? What about oxygen bars? Or holidays in space? They've been thought of already, but the world is changing rapidly - that might mean that there are new opportunities for those able to spot them.

What's on the news?
News reports are often full of problems that need solving. Can you help? Keep an eye on what's happening in the world and you could build a profitable business.

What about sustainability?
Not just sustainability of your business, but of the planet. Are there any opportunities for a 'green' business? People increasingly demand that companies that perhaps once got away with dumping pollutants in our rivers behave more responsibly towards the environment. What might that mean for you?

What legislation changes are planned?
The wheels of the law might turn slowly, but they do turn and things do change. Keeping an eye on what changes are planned could be very profitable. When the law changes, people need to change with it, both to actively comply and to avoid falling foul. If you are able to help them adapt in such circumstances, then you could have a successful business.
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© Shell LiveWIRE


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