5 moments when you should consider setting up a business
Starting your own business is the dream of many experienced workers as well as those at the start of their careers who want independence and more control over their development. However, this decision involves many challenges and choosing the right moment is one of the most important factors leading to success. We invite you to read the following article, in which we discuss when it is worth setting up a business and what are the factors that may indicate that the time is right to take this step.
- Career change or job loss
Losing a job, a change of employment or job burnout often lead to a rethink about whether it makes sense to continue working as a salaried employee – many people are faced with the question of whether it is worth trying something new. At this point, it’s worth considering whether it’s worth starting a business, especially if you have a business idea or skills that you can use in the marketplace.
Starting your own business gives you the chance to be independent and have more control over your working life. However, before you decide to take such a step, it is worth considering what the costs of setting up a business in a particular country are. Remember that a business model that has great potential in Poland may not work in the UK (and vice versa).
- The need for greater flexibility
Having your own business not only gives you the chance to realise your own ideas, but also the opportunity to work on your own terms. For people who need more time flexibility – for example, young parents who want to combine work and childcare – going self-employed can be a great solution.
When a full-time job does not allow for flexible time management, running a business may be the answer. It is then worth asking yourself: is it worth becoming self-employed? Before making a decision, it is a good idea to familiarise yourself with the reliefs and benefits that the tax system offers to new entrepreneurs. One example is the national insurance relief for start-ups, which can significantly reduce costs at the beginning of the business.
We should also remember to get an idea of when the first national insurance contributions will become payable after setting up the company so that we can better plan the company budget.
- Having a unique idea or skill
People who have skills that are unique to the labour market or business ideas often face the question of whether it is worth starting a business. If you have competences that are in demand on the market, starting your own business may be the best way to make the most of them.
Before making a decision, it is worth analysing what the chances are of your idea succeeding in the marketplace. Whether you have an idea for a new service, product or specialist business, it is important to understand what the benefits of setting up a business are and how to realistically assess your chances.
- Financial stability and willingness to invest
Assessing when it pays to start a business often depends on your financial situation. If you have savings or a stable source of income, you may want to consider setting up a business as a form of investment. Such a decision can be particularly worthwhile if you have a plan to grow your business and see the potential to increase your earnings.
A stable financial situation avoids the risks associated with the uncertain first months of operation, when the company may not yet be making enough profit. Is it worth setting up a business at such a time? Yes – but remember to consider the potential expenses and determine what the start-up costs are.
- Seasonality of the business and choosing the right moment
Some industries are heavily influenced by seasonality – choosing the right time to set up your business can be crucial to its success. If you’re considering what month is best to set up your business, it’s worth analysing carefully when demand for your services or products is greatest.
Retail-related businesses can benefit from setting up just before the festive season, while construction-related industries can benefit from starting at the beginning of spring. Setting up a business at the right time can also significantly help its growth in the long term.
Do you already know when it is worth setting up a business?
Deciding to set up a business is an important step that requires you to think about many factors. Determining when to start a business depends on your life, work and financial situation. However, it is worth remembering that your own business can open many doors to professional and personal success.
Whether you are considering a career change, need more flexibility, have a unique idea or are financially stable, it is always worth consulting the experts. Essence Accounting offers full accounting and advisory support to help you take your first steps in business. Need professional advice/assistance? Contact Essence Accounting and get support in setting up your business.
