Is this brilliant or barmy? It totally depends what kind of business you want to start.
The Times Says Brilliant – If You Are Business-Like.
Lauren Tompson in The Times, last Saturday, discussed the fact that many people being laid off in the current recession are using their redundancy money to set up their own small business. People are finding that it is harder to find a new job at the moment and 'taking the risk' of starting their own small business seems a good way to go.
Pros and Cons
There are many pros and cons to starting your own business
Pros:
- There are opportunities in the market for two basic reasons: 1. The recession will have weeded out many inefficient businesses, and left a gap in their market and: 2. Life is changing and opportunities are springing up that just did not exist 10 years ago.
- Banks are beginning to lend money again and interest rates are at a historic low.
- Starting your own small business could give you much more control over your life.
- You may be able to work from home, thereby cutting down on travel and child-care costs.
- You may want to create another income stream, not a whole business.
- If you do not plan, prepare and produce very efficiently, you are at risk of losing your shirt.
- You do need to produce a good business plan before the bank will even consider you for a loan.
- You may end up working longer hours for less money.
- You may find you hate being an entrepreneur.
- Do your business marketing - make sure people will buy your product – even in a recession.
- Put together a good business plan.
- Make sure you understand all the different ways there are to run a business today.
- Understand what legal structure will suit you best
- Look for loans and grants through local and governmental organisations
- When going to the bank for a loan, don't forget to ask them about the Government's enterprise finance guarantee scheme.
- Take advice from everyone, especially Business link.
What Business?
The Times' article really focused on off-line businesses. Chris Simpson of Business Link (government funded adviser) said that he "had seen a growth in hair-dressing salons, fitness instructors, reiki practitioners and other well-being businesses."
If you are wondering about the best industry to be in, Check out our analysis on good industries to be in in 2010 to see what the experts said about this.
Online or Offline?
What Chris did not mention is that many small business start-ups can start their business from home and run it online. Why would you want to do that? Well, our website runs through 4 business models we think all of you could handle with not too much trouble. but in summary
- You get access to a huge market
- Your start-up costs are generally much lower.
- You can work from home.
- Small companies can look big online.
Rob Marcus of Chat Moderator believes that the online business and the family mix very well after hiring his wife. "I admit that private meetings concerning strategic direction run on a shorter fuse than I'ver experienced in previous organisations, but this could be because of being married or simply being joint owners." Rob says.
So could an online business or money making activity be the answer you have been looking for? Find out by reading all about it and by sending for our free introductory course to affiliate marketing Then join out 'Society of Small Entrepreneurs or SoME© to learn more about the subject.
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