setting up your own business

There can be many rewards from running your own business but there can also be many pitfalls. One of the key ways of minimising risk is to do some planning before you commit yourself to self-employment.

Generate ideas

What business will you start?

Generating business ideas is an integral part of business start-up , for example:

• to find one that is more interesting and therefore more motivating

• to adapt an idea to make it different to the competition.

It is also an invaluable skill when actually in business to help spread the risk, encourage growth, prolong the life span of a product or service and adapt to a changing marketplace.

Personal audit

Do you really want to do this? Are you able to run your own business? Do you have the skills? You will need not only the technical skills related to your product or service but also the financial skills to maintain control and selling skills to generate business. Business ownership requires tremendous commitment. Never set up just because you can’t find a job.

Marketing Plan 

• If you have no market you have no business.

• Product, price, place and promotion are the key components of marketing.

• Do you have a market for your idea? Do you know who your customers will be and are there lots of them? Will you be able to get more in the future?

• Who are your competitors and why should people use your product or service rather than theirs?

• Financial backers will want evidence of this market but you need to convince yourself that self-employment is a better option than working for someone else. So, you will have to do market research; ideally even have a skeleton order book.

Finance 

• Is your idea financially viable? Will you be able to maintain a healthy cash flow?

• Many good ideas don't make money. Only by drawing up a plan will you find out if yours makes financial sense. Financial backers will want a financial plan but even if you don't need an injection of cash, make sure you are not wasting your own time or money.

• Minimise your overheads. Only buy essential equipment; consider leasing instead. Taking on a lease on premises can become a millstone - would it be possible to work from home or from a friend’s premises? Make sure you are able to cover your living costs as well as your business ones.

• And finally…If you are going into business with a friend, a partnership drawn up by a lawyer is vital. A 'gentleman’s agreement’ is a thing of the past.

Sources of help and information 

Information at the Careers Service:

• Orange folders full of information and contacts for setting up your own business and finding financial help (see “Getting Started” section on Self-Employment/Starting Your Own Business).

• Reference books on self-employment 

• AGCAS booklet Alternative Work Styles, including Self-Employment. Also available on Prospects Web.

• The Careers Service runs an afternoon workshop for those who wish to test out the concept of business ownership. See events section for further details.

Careers Advisers and Information staff are always happy to point you in the right direction.

Sources of help within the University

• LAUNCH.ed is the first point of contact for students considering starting their own business. LAUNCH.ed is a support service provided by the University for its students and recent graduates who want to turn their business ideas into a reality. You can work with LAUNCH.ed to develop your ideas and finance your plans, creating the potential to work for your own company after graduation. LAUNCH.ed offers a range of entrepreneurship support, including one-to-one business clinics, funding advice, market assessment and business planning, mentoring, networking, hotdesks and online support. Please go to LAUNCH.ed startup business support for students for more information or contact enquiries@launch.ed.ac.uk to make an initial appointment.

• The Edinburgh Entrepreneurship Club at the University of Edinburgh Management School (UEMS) is a consortium of postgraduate Edinburgh students, alumni, researchers, faculty and staff, and colleagues from the wider community who share a common goal of fostering the entrepreneurial spirit. The clubs hosts visits from a wide range of external speakers to provide inspirational talks followed by an opportunity to network and socialise.

• The Edinburgh Pre Incubator Scheme (EPIS) is a joint project between the University of Edinburgh, Scottish Enterprise Edinburgh and Lothian (SEEL) and the European Regional Development Fund.  The scheme is aimed at technology/knowledge based business in the Edinburgh and Lothians area.

• Entrepedia - This site is aimed at both students and entrepreneurs and although developed within Informatics, the content is very general and will be of value to any would be entrepreneur. Entrepedia provides information on starting a venture (including writing a business plan, pitching an idea and securing funding); growing a venture; and learning for entrepreneurs. It includes a number of case studies (which are technology focussed). Also, lists of entrepreneurial events and training opportunities in the Edinburgh area including the EUSA Entrepreneurial Society events and those offered by Business Gateway and the Junior Chamber of Commerce.

• The Scottish Institute for Enterprise is a collaboration between all Scottish Universities. The aim of the Institute at the University of Edinburgh is to provide training and support in entrepreneurship and business skills. The Institute's activities at the University of Edinburgh include:
  · undergraduate and postgraduate study options 
  · programme of free workshops 
  · commercialisation advice and support 

• Transkills Courses for Business and Enterprise Training The University of Edinburgh has developed a programme of workshops to provide business and entrepreneurial skills education and training to post-graduate students. The programme is primarily a series of short half-day workshops. All events are free of charge and non-credit bearing. Workshops are held primarily for post-graduate students and are usually held in the Sanderson Building on the King's Buildings campus. For information contact Katrina Kerr, Transkills, on Katrina.Kerr@ed.ac.uk

Useful Links

Business Gateway Start-Up - lots of help, factsheets and online tutorials to help you start your own business.

Local Enterprise Trusts.  For people whose business ideas are more advanced, these trusts offer free business training advice, contacts and, in some cases, funding. They are publicly funded and exist nationwide. The trusts in Edinburgh are:

• Edinburgh Business Development, Tel: (0131) 477 7000. It is part of the Edinburgh Chamber of Commerce and offers a wide range of services.

• DHP Scotland Ltd, Tel: (0131) 346 3700.  You can telephone to make a confidential, one-to-one appointment with a business counsellor.  

• If you are 18–25 years old, the Prince’s Scottish Youth Business Trust offers specialist advice and possibly grants up to £1,000 on the production of a detailed business plan (which they will help you construct).  

• The Small Business Gateway, is worth a visit to browse through their information. 99 Haymarket Terrace, Edinburgh, Tel: (0131) 313 6060.

Scottish Enterprise - network news, events and information

Shell LiveWIRE – helps 16-30 year olds start and develop their own business and hosts a national competition for new business start-ups.

Scottishbusinesswomen - a website aimed at encouraging and assisting women in Scotland to establish their own businesses.

Startups - an extensive website for those thinking about starting their own business.