For most of us who dream of running our own business from behind the desk of a 9 to 5 job, probably the hardest decision to make is when to leave employment and go it alone. There are many different routes into self employment and the road you take will be determined by the type of business you intend to set up. Here, I am intending to focus on the journey of a sole trader within small business development. This is more of a gradual journey, through several learning curves, and it is probably the 'safest' route into self employment. You can, of course, start with a huge splash - leave your job, get a bank loan or remortgage your house, or fund the start up with 0% credit cards, the choice is yours. If you're intending to go straight in like this you must make sure you've done your homework - do lots of market research, know your competitors and make sure you understand the cost of paid for advertising, which can in some sectors, be immense.
Starting from this standpoint means that you'll need to spend money right away, and need to start recouping it just as quickly. Entrepreneurs that take the slower, safer route, will have the time to build up a following on social media sites, solicit free advertising in the form of editorial coverage and generally have the breathing space to create a quiet buzz around their business.
In this blog I am going to be focusing more on the 'slow burn' approach, it's safer as it doesn't rely on large bank loans and risk taking, but it does take much, much longer. Not great if you hate your job and you're impatient! You'll have to gradually build up awareness of your business until you reach the point where financially you can afford to leave paid employment.
Many people hold down full time jobs whilst starting a business, working every evening and at weekends. Does that sound hellish?! The truth is that if you're passionate about your idea, it will be easy to put the hours in. The advantage of taking it slowly is that you will be able to get a feel for the market and learn whether there is a need and/or desire for what you're offering before you lose the security of a monthly wage. If, like me, you plan to enter retail, be that eCommerce or a physical shop, you can test your market and learn your trade on sites like Ebay and Etsy. Many businesses started this way and it's a great way of learning. You'll get to understand customer expectations, learn how to deal with complaints, streamline your service (postage, packaging costs, couriers etc), whilst simultaneously building your brand.
There are plenty of opportunities to gain free publicity and spread the word about your brand. Take advantage of social media - set up a Facebook page, get tweeting and creating boards on Pinterest. It may feel like a waste of time in the early days but it really can help market your business and also help you to focus your idea. You can get feedback on your products/service and ask your followers for advice on how you can improve.
At this stage, one thing I would really caution against is running straight in and paying to have an expensive website built. Unless you're very computer literate, you'll be stuck with a website that you can't change. You'll be much better served by learning your craft at the coal face (that might be at a market stall, by visiting businesses in person or even selling your services door to door) and by developing your brand first. There are many free website builders which can be very easy to use, but again, don't rush in. Many people underestimate the importance of their business name when it comes to search engine listings, so before you purchase a URL make sure your brand is watertight. I'll be discussing websites and in particular, eCommerce, in greater detail in a later post.
When to go solo?
The truth is that only you can decide when the the time is right to leave employment and go it alone. Whilst risk is an essential part of business success I would caution against being too rash. If you have done everything suggested above and you know that there is a market for what you're intending to do, if you have already secured sales and can forecast that working full time would increase your profitability to the point where you could afford to leave your job - then go for it! Most successful people will admit to having been hard up in the early stages and it's likely that you will have to make some lifestyle adjustments in the first couple of years. Make sure you can generate enough income to cover mortgages, food, utilities etc, forget holidays, smart cars and new clothes for a while!
Make time to sit down and work out the minimum you need to live on a month. If you can, save up some security money before you leave work so that you can survive the quiet times.
If you are planning to get a business loan or grant then some of the organisations listed below can offer advice.
Financial Support For Small Business Owners
The Author
Ali Stokes is the owner of the UK based online boutique called Dazzle Vintage Furniture. My website specialises in selling authentic French furniture and accessories which have been imported from France. I have been self employed for 10 years and aim through this blog to share some of the knowledge I have gained.
TWITTER: @DazzleVintage
FACEBOOK: Dazzle Vintage Furniture
