The Reasons Why People Are Setting Up In Business In Increasing Numbers.

Setting up in business on the increase!
Perhaps somewhat unsurprisingly the numbers of people we are supporting as part of our outplacement service, looking to set up their own business has steadily increased over the last few years. In this document we will look at the reasons for this increase and the attractions behind setting up in business in a depressed job market. In subsequent articles we will look at the most common reasons businesses fail in the first few years and how our experts at Connor work with the individual concerned to ensure their business has the best possible chance of success.

1. Your own boss/ control.
If you start up your own business you are only answerable to yourself, this puts you solely in charge of your own destiny and no-one should be more motivated in looking after your own interests than you. Of course this can be quite scary as you will ultimately live and die by your own decisions but that is what attracts people to setting up their own business in the first place. We are finding that an increasing number of people are getting to a stage in their career where they are fed up with circumstances beyond their control e.g. an acquisition, a new boss etc. causing a major upheaval in their life and as such they are attracted to their own control that being their own boss gives them.

2. Autonomy/ freedom.
One of the key attractions of setting up a business is that you have the freedom to do what interests you, no more completing complex spread sheets that no one will ever read! Within reason you can decide what you do, where you do it and who you do it with.

3. Lifestyle balance.
Perhaps the most common reason of all for setting up in business is to obtain a better work/ life balance; however people have a slightly utopian view of what running a business actually entails. One of the key skills we have at Connor is drilling down into the person’s reasons for setting up in business and dispelling some on the myths surrounding people’s perception of what is entailed when setting up a business and how this impacts on their lifestyle. What is true to say is that your commute is likely to be less and this in itself can be attractive.

4. It can be very profitable:
Although the hours can be long, if you run your business well (and keep your fixed costs low) the rewards can be huge and you get to keep the fruits of your labours yourself.

5. Tax considerations:
Being your own boss gives you the flexibility to structure and run your business in any way you see fit (within the parameters of the law!) which can mean that more of the money you earn ends up in your pocket, rather than the tax man’s.

6. It is less complicated and expensive than you might think:
There are a plethora of accounting firms who will help you with the mechanics of setting up in business and you can register a new business from as little as £5. We at Connor will help you decide on the career legal entity for your business and the questions you need to ask your accountant.

In next month’s article we will start to explore the reasons why companies typically fail and what we at Connor do to make sure the individuals we work with avoid these pitfalls.

For further information on our outplacement service, please call a member of the Connor team on 01491 414 010.