Becoming a business owner is a goal for many of us, whether it's the chance to work on projects you're passionate about or the reward of seeing the results of your own efforts.
It's no surprise, then, that the sector's thriving: a recent report by Aldermore Future Attitudes reveals that 85% of entrepreneurs view their work as a success. With more individuals than ever establishing themselves as a sole trader or limited company – a record 80 start-ups were registered every hour in 2016 – here’s the need-to-know if you’re considering setting up your own.
1. Timing is crucial
Do your research and prepare for your launch date. When's the best time? The spring offers a fresh beginning whilst the summer is often great for catching the holiday boom. Winters see an uplift in the run-up to the Christmas shopping season.
That said, the Aldermore Future Attitudes report shows that businesses launching in the spring flourish the most. A notable 88% of start-ups founded in spring (roughly 4.8 million) say they have been successful.
Carl D’Ammassa, Group Managing Director of Business Finance at Aldermore, says, "Establishing or owning a business is a dream for many. However, it is key that all budding entrepreneurs realise the extensive amount of time and effort that will be needed to achieve their goals."
2. Get online
In the digital age of 2017, it’s more important than ever to be aware of the opportunities in ecommerce. According to the Office for National Statistics, a 21% increase in online sales was noted in December 2016, pushing the value of the ecommerce economy to £130 billion.
From a reduction in overheads (there’s considerably less rent when it's online) to longer opening hours for customers, internet shopping brings a whole new scope for opportunity.
3. Take a risk
If you’re planning to set up your own business, don’t forget to keep in mind the risks, such as missed payments.
Late invoices accounted for 51% of all invoices issued in the UK last year and it is one of the biggest impacts in cash flow. Simple factors such as forecasting in advance, preparing outgoings accordingly or ensuring you have savings can help ease capital problems.
Learn more here about what Dukes Bailiffs can do for your commercial loans or for advice on your debt repayments.