Got a great idea for a business but not quite sure how to start it? Smaart Graduate has teamed up with Make Your Mark to give you the lowdown on what to do!
Does running your own business and making your own rules appeal to you? Perhaps the idea of becoming a super-rich businessman or woman is what gives entrepreneurship that glossy sheen. Whatever it is, don’t be seduced by the glamour without realising that the perks come with some down sides of their own. Because setting up a business is one hard slog. There will be lots of late nights, moments of despair, times when you’re not sure what your next move should be. On the other side, it’s an exciting experience, you get to make the rules, and other people (if you get to employ anyone else) will call you ‘boss’. But before this can even happen, you’ve got to turn your dream into a reality. And it’s here that a lot of people get stuck – how on earth do you start a business?
To help you start out on the right foot, Make Your Mark, a not-for-profit organisation which helps to inspire young people to have ideas and make them happen, has given you a guide to how to go about starting up. So read on, then for even more inspiration read the case studies that follow. There are a lot of young people out there chasing their dreams, and it’s inspiring to see. Good luck!
Turning your ideas into reality: a brief guide to setting up your own business
Being an entrepreneur is the top career choice for many 14 – 30 year olds. But how can you make the leap from aspiring to run your own business to actually doing it? Here is some advice and tips to help you take the first steps.
Finding a business idea
Many people get stuck at the first hurdle because they don’t think they have a good idea. It could be an invention, a new product or service or a solution to an everyday problem.
It could even be an interest or hobby that you can turn into a business. Thinking carefully about your own passions, skills and the problems you encounter in your daily life can often lead to that magic ‘eureka’ moment. For example, Student Beans, www.ratemyplacement.co.uk and the Gradulicious network were all formed on the basis of their founder’s experiences at university or as a new graduate.
Get talking and connect with othersOnce you’ve got an idea that you would like to pursue further, you should test it out on others. Getting feedback is a great way to check your idea has potential. Why not invite a few people together in your living room, café or local park to discuss it. Find out if anyone else is already doing something similar and think about looking at different industries to find inspiration.
In his best-selling book, The Tipping Point, Malcolm Gladwell says: “The closer an idea comes to a Connector, the more power and opportunity it has”. We aim to connect young people to help them make their ideas happen with the help of experience, knowledge and contacts of others. Visit www.makeyourmarkconnect.org.uk to find networking groups and events across the country. You can also post a question to the network.
From speed-networking fests to rants in cafes, people are plotting, planning and scheming with likeminded souls across the country. Networking might seem daunting but burying your head in the sand will get you nowhere! And with the growth of the internet, there is no need to even leave your house to network! Farzana Baduel is the Founder & Managing Director of two businesses. She says: “Be friendly, positive and make the effort to introduce yourself to people, even though they may seem cold at first impression. Get out of your home and office and go and meet people at networking events.”
Thinking finance
The next step is to do your sums; this is when you really start to test the feasibility of your idea. Calculate your basic income needs and find out how much your business needs to earn. Every new venture needs start-up money - before your first sale you may have to buy equipment, rent or lease an office space and spend money on marketing. Once you’re trading you’ll need cash to pay the bills and keep the business going - so it’s likely that you will need additional finances to get your business off the ground.
Make sure you have taken into account how much money you need to live on. In the early days you might not earn spare cash that you can spend on yourself. You may need alternative sources of income while your business is growing. Many businesses can earn enough to cover their outgoings, but don’t make a profit in their first year. If you do make a profit, you may want to reinvest it to help your business develop.
Writing a business plan
Once you’ve had a good look at your finances, you will need to flesh out your idea. A well thought out plan will help you get your idea off the ground and will open the doors to finance and support. Writing a business plan isn’t as daunting as it sounds and is invaluable in laying the necessary groundwork for your company. It lets people know that you’re serious and demonstrates that you’ve thought about the many aspects of your new company, including its outgoings and profit.
Don’t be afraid to ask for help. There are many different types of advice available to budding entrepreneurs depending on the type of business you are planning. Governmental, professional, educational, voluntary and non-government organisations (NGOs) can all be useful sources of advice and ongoing support.
Try, and try again!
Most importantly, remember that everyone makes mistakes when starting out. In fact, many successful entrepreneurs say that this is the best way to learn! The more you know about starting and running a business the more prepared and less afraid you’ll be of facing and making big decisions when the time comes.
Our quick tips for starting a business:
1. Find out if your idea is any good
2. Raise money/funding
3. Get connected - talk to other people
4. Safeguard your idea
5. Be prepared to gamble
6. Hard work makes ideas happen
For more advice and next steps, on anything from money matters to mentors, visit www.makeyourmark.org.uk
Hannah Bourne, Make Your Mark, the national organisation to create an enterprise culture in the UK.
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