David Watkins has been involved in the start your own business programme since 1986. In the last 24 years, he has helped many hundreds of people make that leap of faith into the world of self employment. Today, he works closely with business support agencies as a business champion in addition to producing and delivering practical workshops that really make a difference.

In this article, he asks whether now is a good time to start thinking about starting a new business.

As he says, ‘Having converted a part time business into a full time one ten years ago, I am often asked if there is a ‘right time’ to launch a new business. The answer is always the same. 'You will know when it’s right'. For some, the time is right when redundancy forces their hand, for others it’s something they have been working towards as part of their ‘life plan’.

So is now a good time? Is the current economic climate with rising unemployment and tight credit lines conducive to striking out on your own?

Some would say definitely yes. After all there are 2.5m people unemployed in the UK, including 1.2m who have not worked for six months or more, thereby providing a readily available talent pool. Unemployment or the fear of redundancy is a major motivator for thinking about going it alone.  Being made redundant for the first time in my life (and in my late 40’s) gave me the impetus to take control of my own destiny and swear that I would not allow anyone else dictate my professional destiny.

So what about the money. Surely, the severe restrictions on lending are a handicap to setting up your own business?

Not necessarily. It’s true that it is now more difficult to obtain venture capital and speculative funding but is that such a bad thing?  Maybe this limitation actually encourages us to focus on our own creativity rather than buying unnecessary items such as flash cars and expensive offices.

Also, with increased competition and decreasing margins, suppliers know it’s a buyers market and therefore offer increased discounts and better terms simply to secure your business. Money, or lack of it, should never be a stumbling block to starting your own business. Recession or no recession.

In fact, there are many successful businesses that started out during period of economic downturns that have not only prospered but become world leaders. Microsoft is an example of a company launched during the 1970’s oil crisis recession that has flourished. According to business historians, there is no single formula for success. Like most, if not all, entrepreneurs, Bill Gates' success is down to a combination of luck, a good idea and hard graft.

Bill Gates spotted an opportunity – namely the growth in personal computers and choosing a partner, IBM that was able to exploit his software program. As in all economic depressions, certain market sectors will grow rather than decline, The skill is to recognise the blossoming markets and provide a solution to a an identifiable problem or issue.

Tough times demand tough responses A different ways of doing things. Not only thinking smarter but responding quickly with innovation and creativity. This is what entrepreneurs do best. Many business academics say that bad times are the best times to start a company.

So what about age?  Is there a ‘right age’ for starting your own business? Although research recently undertaken by the commercial bank Santander, did find that around a third of all start ups were between 26 and 35, there are many notable exceptions. Ray Kroc was 52 when he bought out the McDonald brothers to set up the Big M, Harland (Colonel) Sanders was 65 before he started to franchise his Kentucky Fried Chicken whereas Fred Deluca was only 17 when he started Subway in 1965. There are now more Subways than McDonalds in the USA.

Being involved with a number of business starts up programmes in South Yorkshire, I get to discover the key reasons as to why people start their own business. And it’s not always the obvious ones.

For example, a large number say it’s the personal freedom that working for yourself gives you. The idea of breaking away from the 9 till 5 shackles and not reporting to a Boss is very appealing to most people. Unfortunately, the reality is somewhat different. Working for yourself invariably means longer hours and more discipline rather than less. After all, it’s now you that makes all the decisions, raising funds, obtaining and keeping customers and all the admin. that used to be done by someone else. 

Having said that, it’s up to you how you allocate your work load. Flexible hours incorporating family commitments and choosing the hours that suit you (and the customer of course).Others tell me it’s the lack of personal development that stifles them at work. They are looking to expand their knowledge and experience and find that promotion prospects at work are limited.

Working for yourself will expand your horizons almost over night. You will have to master many skills completely outside your comfort zone. The danger is you become so busy working in the business rather than on the business that you lose sight of your personal goals.

So is working for yourself just one big ego trip?  Many entrepreneurs would agree that you have to have a healthy ego to succeed. For many this is simply a recognition of their worth and value. Inner belief or ego is the mechanism that drives people to say ‘I can improve on that’ or ‘I have the ability to run my own businesses’

Alan Sugar (sorry, Lord Sugar) started his own business at the age of 21 as he could not see himself continuing a career path in the civil service. He is now worth a reputed £830m.

So it must be money then that encourages people to start their own business? Many people think that working for themselves is an easy route to making money. They see the success of years of hard graft on programmes like Dragon’s Den and assume it’s ‘easy money’  If you need a regular consistent income, self employment may not be for you. Working for yourself if more of a roller coaster than a train ride.

So what is the number one reason for starting a business?

One word. Passion.

Entrepreneurs are passionate. About everything. They wake up in the morning full of vim and vigour. The glass is always half full and ‘can’t do’ is not in their vocabulary. Are you passionate about starting your own business? Have you spotted a gap in the market? Do you think you can improve on a current product or service, do you have the self – motivation and discipline to create and sustain your own business?

If the answer is yes. Now, might be a very good time to start your own business.

© David Watkins
Photos copyright acknowledged: BBC / BE-SY / DonBAC / Microsoft Corporation

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