Setting up a business, becoming your own boss and getting to pursue something you feel really passionate about is a dream scenario for many people.
There are lots of moving parts to running a business, thankfully, there’s lots of help available from different charities, the government and organisations such as FSB. This is a huge help, especially when it comes to working out some of the costs and issues involved in getting your business up and running.
The cost of the idea
The first thing you need to work out is if you can afford to set up your business. You need to think about scale, is this something you want to start off small, and gradually build up into a full-time career?
You need to think about the idea you have, is it practical? Is it achievable? Deciding to set up a business is easy, actually getting into a position to start trading is much more difficult.
You need to work out how much it will cost for equipment, materials, tools, training, all the things you will need for a business. This could be a case of buying better equipment to turn your photography hobby into a career, or it could be buying tools and maybe even hiring workshop space to make furniture.
The key is to make a list of everything you think you’ll need, focus on what is absolutely necessary to get started, then gradually add the other elements as your business grows. This way you can make your idea more practical and sustainable at the start.
The other major area to consider is how you manage your finances while setting up a business.
Do you need a business bank account? If so it becomes a case of searching for the one that’s right for you. Maybe you’re starting small enough that your personal account will suffice.
Regardless of the banking option you choose you also need to think about budgeting. When you begin working for yourself full-time your income might fluctuate. This can cause a degree of uncertainty in your finances, budgeting effectively can help ensure you don’t run into financial difficulty and can cover all of your living costs.
A business loan can help you to fund getting your idea off the ground, but until you get settled into a steady pace of work and become more established ensuring you can still afford to pay bills and meet other financial obligations is the biggest consideration you need to keep in mind.
Starting your own business can be exhilarating and liberating, letting you turn a hobby or an interest into a rewarding career. There’s ample support available for anyone looking to start a business, but it is important that you have a clear idea of the costs that will be incurred and how much you need to be looking to make in order to not only maintain your finances but ensure your business is as successful as it can be.