A BRIEF LOOK AT STARTING A BUSINESS

 If you have a husband or wife or children, involving them in the decision to go it alone is important. Your home atmosphere should be very supportive, particularly in the early stages. Your family could also be useful as a sounding board, helping out with the odd task or providing feedback or finance. 

 You need to ask yourself if you are the right person to start a business. Compile a checklist with the help of the following questions: Can you work long hours? Can you take criticism? Will you be able to cope with financial insecurity? If your business struggled in the early stages, would you continue? Write down the reasons why you are starting a business. 

 Once you’ve got an idea you need to know that people will need it enough to want to buy it. Many people opt to begin a business by using a skill that they have acquired in their spare time as a hobby, such as jewellery-making. 

 Trying to sell a product that is new can be an uphill struggle. Being first is not always best, as you have to educate a market and convince them of the need for your product. So don’t be put off if your idea has been done before – think about how you can do it differently, by including an additional feature or benefit. 

 Carry out as much market research as possible. Find out about your market place, concentrating on areas such as the demand, your competitors and the size of the market. Talk to potential customers, suppliers, competitors, distributors and ex-employees of competitors. 

 Everyone has different motivations for starting a business, and toe-dipping means you can test your idea out without risking everything. You can carry on earning money from your job while you are starting up. Use your spare time to carry out your market research. 

 Identify what you do well and what you do badly, dividing it into areas such as financial, marketing, operational and general management. Be honest with yourself, but also be realistic. Try and get someone else to evaluate your answers – another person’s perspective can be very valuable. Identifying your weakness will help you to recognise what you are good at, and which areas you will need to find someone who can do a better 

 Remember – two heads are better than one. Seek out the advice of a family friend who has the experience of being in business, or someone who is recommended to you, or someone you are close to. Consider giving them a share of the profits or equity in your company in return for advice. 

 But remember that whatever you write down is not set in stone. Your business plan should have longer-term objectives, estimates and forecasts – try to make as many of your goals as possible measurable. The two most important reasons for having a plan are to show to outsiders if you need to raise money, and to help you keep your business on a planned course, so you can spot when things are not going to plan 

 An ideal format for your plan, if you intend it to be for outside use, is to have between three and ten pages of text that draw out the important points, plus a series of financial figures. Excessive detail should be confined to appendices. 

The Budding Boss is one of the most common types of would-be entrepreneur.

They’re interested in starting a business and know there’s still some work to be done before committing to everything that comes with building a company from the ground up.

Crucially, though, they already have the most important part nailed down: passion for what they do.

This entrepreneur type has the drive and desire to be their own boss but might need a gentle push in the right direction.

If that sounds like you, get started by reading up on small business finance and buckle down to save up that crucial start-up capital.

Not sure where to start? You’ll find a wealth of free resources on Sage Advice, such as this guide to starting a business with no money, and this handy article on how to write a winning business plan.

Good with numbers and manging your money?

You’re probably a Number Cruncher and could be in a pretty strong financial position to absolutely smash the start-up game.

Having a strong foundation in finance will set you up to boss your business from day one. But there’s always more to learn – so be sure to keep up with all the latest updates and legislation that might affect your operations.

When it comes to admin, Number Crunchers often need to work on managing their schedules and stay on top of practical tasks such as taxes, invoices and payroll if they have any employees.

If you fit into this category, you’re already a pro when it comes to finances – but you might just need some more time to settle into an entrepreneurial mindset.

Not sure how to do that? We’ve got you covered with this directory of resources for small business owners (and business owners-to-be).

If ‘switched on’, ‘organised’, and ‘on it’ are just some of the words people use to describe you, there’s a good chance you’re one of the Process Pros.

This type of entrepreneur works smart and has a keen eye for detail, acing admin and eating processes and procedures for breakfast. Sometimes even lunch and dinner.

As a Process Pro, you’re already miles ahead of the game.

Get to grips with the basics of business accounting and bookkeeping to identify any potential barriers to getting your business off the ground and pay special attention to start-up costs to make sure your current finances are in order.

Process-driven people sometimes have a habit of overanalysing or overthinking situations – and that can stop you from taking action.

To help you get into that can-do mindset and build the confidence you need to take charge, check out this insightful interview featuring entrepreneur Mathew Porter from VASO over on our Sound Advice podcast, and get some expert tips from someone who has seen and done it all before..

The archetypal entrepreneur, a Dreamer has a knack for spotting opportunities before anyone else, and is brimming with the kind of enthusiasm, vision and self-belief necessary to succeed.

But to turn those dreams into reality, it takes some doing – and it can be difficult for some budding entrepreneurs to make that leap.

To give your idea legs, start off by creating a solid financial plan, covering key aspects such as start-up funds and how you think you’ll manage your money.

Staying on top of admin is also important here, because big ideas need that infrastructure in place to keep things running smoothly in the day-to-day.

If you’re not sure where to start, we’ve got you covered with our small business pocket guide.

Keen Machines are diligent, focused and have the kind of work ethic you need to not only get a start-up off the ground, but see it thrive.

This entrepreneur type knows the market they want to tap into and have a clear picture of what they want to accomplish. And they always have a well-researched plan to back them up every step of the way.

If you’re a Keen Machine, you naturally have the drive and determination required to get the job done. But you might need to dedicate some time to figure out the finances, including how to secure funding and apply for any grants you might be eligible for.

Visionary entrepreneurs seem to just get it.

They’re creative, confident and business savvy, and know how money moves through a business. And, most importantly, they know that there’s always more to learn.

Think Steve Jobs, Karren Brady, Whitney Wolfe Herd, Bill Gates and Mark Zuckerberg.

A Visionary has the mindset and means to not just launch a start-up but see it reach great heights and never stop looking for opportunities to grow and diversify.

Don’t be intimidated by the fame and fortune associated with these names – the majority of big-time entrepreneurs started out with nothing more than a great idea, some self-belief, the desire to take action and a lot of resilience.

Meticulous. Sharp. Always pushing for the best.

For the Perfectionist, a job isn’t done until it’s done just so, and can probably turn their hands to anything and run the show without skipping a beat.

This type of entrepreneur knows their way around finances and has the skills to perfectly plan a route into profit, with the right advice to back them up.

From keeping track of taxes, invoices and timescales to managing a fully-fledged company, it all comes naturally to the Perfectionist.

The main thing the Perfectionist needs help with is learning to trust their instincts and focus their skills and attention on that winning business idea.

For an extra dose of inspiration, listen to what Made.com co-founder Julien Callede has to say about building a scalable business from day one.

As the name implies, the Ready and Set entrepreneur is standing in front of all the opportunity that awaits.

They’ve thoroughly researched every aspect of their business-to-be. They have a keen understanding of everything from admin and accounts to the day-to-day running of the business and a plan for the next few months or years.

They have a clear, vibrant vision for where they want to take the business, have what it takes to see that plan through.

They just need to take the leap and dive into it all.

If they haven’t done that yet, there’s a good chance that it’s all in the mindset. A little self-confidence and a hint of inspiration should do the trick – and you can get heaps of that by looking up entrepreneurs who turned their side hustle into a full-time career.