As many as half of all workers seriously consider setting up their own business during the summer holiday according to research.
Emma Jones, founder of small business support network Enterprise Nation, said: “The combination of sun, sand, sea and downtime means we’re more relaxed and have time to contemplate what we want.”
Relaxing on a beach with time for reflection can make us aware of any dissatisfactions with our current status or job. It is also an opportunity to think what else you might do if stuck in a rut and you want to “take back control” of your life.
But what is involved when starting up a new business?
The key is to identify a clear purpose and define the product/market mix for your business, essentially to be able to answer “why” questions. This may require research but you cannot start planning until you have a clear purpose. Turning dreams into reality is more than simply having a good idea!
To help you find your purpose, here is the link to a TED Talk, ‘Finding your Why’ by Simon Sinek.
Find your Why before you go any further with your start-up
The core of Sinek’s argument is that all successful businesses have a belief in the core proposition which in turn inspires others.
In essence, he says, people buy into a product or service out of self-interest, and this is why the self-belief of the business’ founder is crucial to its success. This explains why sometimes even the best capitalised business with the most innovative products can fail, because they fail to convey a fundamental belief, or enthusiasm, for what they are doing.
This is not about money or fame and the most successful companies, such as Apple succeeded because their founders not only believed in what they were doing but were able to persuade others that buying into that belief would in some way enhance their own lives.
So, when you are thinking of starting up a new business this is central to whether it will succeed or fail.
When is the right time to launch?
It does not really matter when but you shouldn’t do so until you have identified your “Why”.
Of course, in preparing to launch you should do research such as trialling the idea most likely with test marketing slightly different products/services with slightly different markets/customers before settling on your core proposition. Once you know what will sell you can develop a plan that might be used to raise finance or simply be used as a discipline for following so you don’t get hijacked by others who come along with other ideas such as where to spend money on promotion initiatives.
Another key decision is what type of business, you should trade as, whether as a self-employed sole trader, as a limited liability company or as a partnership with others. Each has advantages and disadvantages which will inform your decision.
Other factors might be the state of the economy, industry or annual cycles, availability of finance, people and other resources or opportunity.
It might be counter intuitive but during a recession can be a good time to set up a business since established businesses often take their eye of their customers when they switch their focus to one of survival. This is particularly true for larger businesses since they are also less agile and often unable to cope with a changing market.
In summary there is no right or wrong time to turn your start-up dream into reality providing you are prepared.