It’s a big commitment to set up your own business and it is also a huge achievement. You will be your own boss, you’ll be creating jobs which will help the Irish economy and you’ll be generating your own income. Although the latter may take a lot of time, energy and hard work in the beginning, starting a business is a very exciting time in your life.
But do you have what it takes to get started? Let’s talk about four things you need to know before you start a business.
1. You need to know if your business idea is a viable one
Talk to your friends and family about your business idea. Your business idea does not need to be unique, groundbreaking or new to your sector. Maybe you feel you can produce goods of better quality or cheaper price. Perhaps you can provide a certain service better than anyone else in the marketplace.
Maybe you can reach new markets by extending online or new regions. Talk to a professional who has experience in the industry you’re trying to enter. The Irish Government has an online support website where you can get access to all the support networks in your location.
2. You need to know if you have enough cash to support your business in the beginning
Starting a business on your own means you’ll need cash to support the initial stages of business development. You could use your own savings, borrow from friends or family or receive a loan from the bank. Even if you don’t know how to do a cash flow projection, start by budgeting everything you need to get your business started in a spreadsheet. This will help you map out how much money you need to support your business in the beginning.
Consider keeping your job in the beginning and working on your Startup on the side. This takes discipline, focus and passion for your Startup. We have many clients that come to us while they’re still being employed full time. This is a perfectly good way to fund your Startup in the beginning but may not work long term. Set savings goals so you don’t lose sight of the bigger picture (your business).
Local Enterprise Office
The Local Enterprise Office also have grants and supports for entrepreneurs who want to start a business in Ireland. Take advantage of these free resources as they’ll push your business in the right direction.
3. You need to know if you have what it takes to be your own boss
Take a personality test
Personality tests are a great way to determine what kind of person, leader and boss you are. Hubspot has a list of 14 free personality tests you can take online. Take a few of these tests and determine the type of person you are – you may identify with a few different characteristics.
Being your own boss means you’ll be held accountable for the actions of your business and the progress of your Startup. Consider what will happen to your work / life balance and if you have a good support network around your to keep you and your business on track. Meetup is a great platform that will put you in touch with entrepreneurs who are on the same journey as you. There are a lot of events happening near you so find one that suits you and get involved with the Startup community.
Download productivity apps
Productivity is also an important part of being your own boss. Since the beginning of 2019 to date (October, 2019), there has been an average of 55 companies being formed every single day. If you want to get your Startup off the ground, you’ll need to streamline your business activities. Download productivity apps to help remind you of important tasks, meetings and milestones. Some great productivity tools we use are Trello, Slack, Zoom, TeamViewer, LastPass and Grammarly.
4. You need to know the next steps to start your business
The next thing you’ll need to consider is if you should set up as a Sole Trader or Limited Company? Both have pros and cons and your answer lies within your business idea. It’s easier and quicker to set up as a Sole Trader but a Limited Company offers you more protection against certain claims against the business. When you set up a Limited Company, you are setting up a separate legal entity which allows the company to enter into contracts and do business. You can be a Director of a Limited Company and you’ll only risk what you put into the business. As a Sole Trader, your whole livelihood can be used as collateral for the business.