Fancy being y
As job losses hit 730,000, your essential guide to striking out on your own
WHAT can you do if you can’t find a job? Make one for yourself. Last week Money Mail launched its jobs crisis survival guide, taking you through your basic redundancy rights and how to navigate a competitive labour market.
But the harsh reality is that work could be scarce.
The Bank of England has revised its unemployment forecast down from 10 pc to 7.5pc but firms continue to haemorrhage jobs and the economy may not recover until the end of next year. So it could be time to take matters into your own hands.
It’s a well-trodden path. More than a third of those who have been made redundant start their own business, according to Direct Line.
Emma Jones, of business network Enterprise Nation, says recessions often trigger an ‘uptick in startups’ and June saw a record number of new businesses being created. But there’s no need to go it alone completely. There is plenty of support available. Here is Money Mail’s guide to how to get started . . .
WHAT’S YOUR BIG IDEA?
MAKE it your mission to solve a problem you care about. Alec Hawley, business expert at startups.co.uk, says a good business idea marries your own passions with wider trends.
He adds: ‘If you’re creative and good with your hands, then selling things you’ve produced online can be a great way to start, especially with online sales booming as a result of the UK lockdown.’
WILL ANYONE BUY IT?
THErE is no point in throwing time and money at something nobody wants. Is the industry profitable? If you enter a growing market, you don’t have to be the biggest fish to make a splash.
Test it before you launch it. You can launch a website with £50 of Google marketing to see whether people will buy the product. Or you could go old-school and stop people in the street.
IS IT PROFITABLE?
NEXT you should create a business plan. Mr Hawley says: ‘It doesn’t need to be hugely detailed when you’re starting out. You simply need to think about your costs and who your audience is, as well as the best ways to reach that audience.’
What is the growth potential? To create a business worth at least £1million, you will need to map a path to making at least £100,000 profit each year.
DO I CROWD-FUND IT?
HOW much capital you need will depend on your concept. If you decide you need to raise money, there are various ways to do it. A Government-backed start-up loan allows you to borrow up to £25,000 at a low rate of interest for up to five years and also provides 12 months of mentoring from a business expert.
Business loans are similar to start-up loans but are not available just for new businesses. The Federation of Small Businesses launched an online funding platform last year which allows you to access hundreds of funding options via just one application.
COUNT THE COSTS
TrAcK your finances. Emma Jones says the key is to use resources efficiently. She recommends using free digital tools such as Google docs and time-management apps such as Toggl, while accounting software such as Xero helps you to keep records of invoices.
Setting up a business bank account is a must if you’re a limited liability company, as you are legally required to separate your business and personal finances.
GET OUT THERE
SOcIAL media is a free and effective way of getting yourself and your business noticed. Ms Jones says LinkedIn is essential for B2B businesses and you should be on Instagram for fashion and food. ‘Twitter and Facebook are also musts,’ she adds. Mr Hawley says a slick website will help potential customers find you. He adds: ‘Luckily, website-builders make it easy to quickly create a professional website that showcases your brand.’ Examples include Shopify, Wix and Squarespace.
HELP IS AT HAND
THIS guide won’t turn you into Apple boss Steve Jobs. It simply can’t cover everything — but the key message is to access available support, much of which is free.
The Prince’s Trust Enterprise programme is available to those aged 18 to 30 who are unemployed or working fewer than 16 hours a week.
Enterprise Nation has teamed up with the Government to provide small firms with free one-to-one mentoring with expert business advisers. There are also dozens of free online guides available — and don’t forget friends and family.