A new study of 1,000 aspiring entrepreneurs has revealed that the prospect of securing funding for their business is one the most off-putting aspects of starting up. 40 per cent cite the fear of failure as a close second.
This according to a new study commissioned by self storage provider Space Station, which also revealed that despite financial fears, two in three Brits want to be their own boss, with more women (65 per cent) than men (59 per cent) aspiring to work for themselves.
Flexible location and working hours were found to be the top reasons why future business women wish to start out on their own. On the other hand, men are more driven by making more money and being financially independent, compared with just 22 per cent of women.
Self-achievement and the ability to choose people they want to work with also ranked highly for both male and female respondents. However, economic instability was one of the biggest obstacles of starting a business, according to over a quarter of respondents.
While future entrepreneurs may differ on what might make owning their own company worthwhile, it seems more than a third of respondents are unsure where to start their own business venture, with more women feeling unsure at 33 per cent compared with 28 per cent of men.
According to the House of Commons Library, 2015 saw 383,000 businesses enter the market, the highest number since records began in 2011.
For niche business owner, Kevin Hall, finding what makes your product or service different can be it’s strength. As a LEGO brick artist and designer, Hall believes finding your niche is the key to small business success. “I’ve always wanted to do something creative and I’ve been collecting and building for about 36 years now. I was six years old when I decided I wanted to produce unique LEGO creations as a business,” he said.
“Although starting up a new business is an exciting prospect, it’s easy to overlook the simple things such as organisation and planning that can have the most impact. Plan where you want to be and stay on top of your finances if you want to make your venture a success.”
Building a big network of people you work with and creating new relationships is also very important, according to Hall. “Over the years I’ve built some great relationships with companies, from helping us shipping our models to storing them. These relationships are crucial to my business.”
Another business hiccup for entrepreneurs can be regulatory hurdles. According to Jeremy Gaisie, co-director at Pump n Grind Coffee Roasters, as enjoyable as starting up has been, managing and anticipating regulatory challenges can make or break a business. “We’ve been hit with many unexpected governmental hurdles such as the introduction of rising staff costs and tax changes but we’ve also had incredible support from our local community in Leeds,” he said.
“My advice would be to take people up on their assistance when it is offered. A friend of mine wanted to start a web design company and offered to put our website together for free. We’ve also received great furniture from other businesses that are refurbishing their premises and we’ve connected with the local independent scene which greatly helps in free promotion and community involvement.”