Your business idea and proposalThe business proposal is a document that describes your business idea and sets out the reasons why you think that it will succeed. It may be a single sheet of A4 or a file of business reports, scribbled notes and calculations that you have been collecting, but all will help you to streamline your ideas. Your first consideration should be whether: - you have a skill or an idea (service or product) to sell;
- there is a market for what you can offer.
In the process of putting your proposal together, you will need to ask yourself a number of questions: - What relevant skills do I possess?
- Could I adapt or add to my existing skills?
- Where will I work from?
- What goods or services are needed locally?
- Could I sell (resell) services or products made by other people?
- Can I spot new ideas?
- Can I sell existing ideas in a different way?
- Should I buy into an existing business?
- Do I need a business partner(s)?
This list is not definitive: it is merely a starting point. Write down a summary of your idea(s), carry out some initial research and then organise your notes and findings. Once you have completed your proposal summary you will be ready to move on to creating the essential business plan. Remember that you need not be proposing something original, but putting your own stamp on a well-represented trade, such as translating, or running a restaurant. If you are proposing a new invention or concept, or crafting something creative such as a play or a design, take steps to protect these from being copied, used without permission or exploited. The key factor is to keep tangible, dated evidence that will confirm your ownership – in court if necessary. A patent can be taken out, which gives you exclusive rights to make, use and sell your idea or invention and prevents others from misusing it. A trademark entitles you to further protection. Copyright and design right (covering content and appearance) are automatic in the UK, but are notoriously difficult to prove legally. Always add the copyright symbol to work that you send out, keep any originals and mail yourself copies via recorded delivery. Consider paying to register your design. The website of The British Library has a section devoted to this topic, as do websites of organisations such as Intellectual Property Office (IPO). back to top Working with othersCollaborating with a partner(s) can be a good way to get your business off the ground and is especially useful if you each have different skills to bring to the enterprise. Regardless of how well you know each other, ask a solicitor to draw up a tailored agreement about how the business will be run and what will happen in certain eventualities. back to top Doing your researchThere is groundwork to be done on practicalities such as funding, legal considerations, markets and competitors. Don’t neglect this as it is the foundation on which your successful business will be based. Searching the Internet will provide useful information, but local businesses and university libraries will have a wealth of market information available for free that may otherwise carry a charge if you access it online. back to top Business nameYour business name may be your own name accompanied by an indication of your role, e.g. ‘Jane Smith, Advertising Consultant’. Alternatively you could adopt a memorable title and perhaps a logo. If it is a limited company, it must be registered in a name of its own. You will have to check whether the same name or something similar is already in use. Companies House is the main source for information about this and about the wordings that are permitted and appropriate. back to top Your business and ITYou will need an up-to-date computer and a dependable internet connection, plus a dedicated and professional sounding email address. A website may be an optional extra at first, unless you need it for e-commerce, i.e. taking payment over the internet. Your website URL should not replicate or resemble anyone else ’s. Ideally, it will reflect the nature of what you are providing. You can register at Nominet, which has information on suitable and available internet addresses. back to top Registering as self-employedWhen you start working on your own behalf, you have a few months to register as self-employed for tax and National Insurance (NI) purposes. Contact the local tax office. You can register as both employed and self-employed if you have a second job. back to top PremisesThere are several different types of locations from where you can run a business - it is important to think carefully about what type will suit you best. Before agreeing to rent premises, identify all possible setting up and running costs (e.g., installation of machinery, refurbishment, business rates, electricity, gas, water, heating, service charges, legal agreements, survey, removal costs). - Choosing business premises: Plan your space carefully. What will the insurance cost you? Is it convenient for customers to find you? Speak to other tenants re: ‘hidden’ problems. Are any subsidies available?
- Health and safety: If you are in external premises, they must conform to health and safety laws with regard to features such as: fire hazards and escapes; planning consent; ventilation; environmental issues. The list becomes longer if you are employing staff or allowing access to members of the public. More regulations come into play with particular types of enterprise, such as construction or food related businesses.The Health and Safety Executive (HSE) supplies guidelines on these matters and they or a local environmental health inspectorate may make regular checks.
- Working from home: Do you need planning permission? Will it affect your house insurance? Check neighbours’ potential reactions. Is it professional enough for client visits? Will you feel isolated? An alternative is working out of a communal space (such as artists’ workrooms or a clinic shared by several therapists) where all expenses can be shared. Cheaper options include workspaces rented out to small businesses by enterprise agencies, charities and, increasingly, by universities. Visit UK Business Incubation (UKBI) for more information.
back to top Advice and help- University sources: If you are a student, your college or university may run sessions on setting up in business and your careers library should contain some information on this.
- Local authorities and adult education colleges often provide classes on self-employment.
- Jobcentres and local careers services may have advisers who can deal with start-up queries.
- Business Link is probably one of the most comprehensive and authoritative resources you can use.
- Banks: Every bank on the high street gives free information on this topic.
- Websites: For a comprehensive overview of everything you need to know, go to Business Link.
- Charities and similar enterprises: The Prince's Trust is an example of an organization that nurtures intending entrepreneurs and supports them in developing their ideas. Some businesses run competitions and events for this purpose: the best known of these is Shell LiveWire.
- Membership of professional bodies, trade associations and unions: There is very likely to be a professional body relevant to the work you intend to do. For example, the National Union of Journalists (NUJ) can tell you about freelance rates of pay. The The Chartered Society of Designers (CSD) will help with copyright issues.
- Sector Skills Councils: Some sectors have their own careers services, which that are fully clued up on matters relating to self-employment. Skillset: The Sector Skills Council for Creative Media is a prime example of this.
- Other relevant bodies and sources of advice are listed in contacts and resources.
back to top Gaining business skillsGaining relevant work experience is one of the most effective ways of preparing for self-employment. Observing how any small business works first-hand is invaluable in providing an insight into: - the skills you will need to run your business;
- the workload and stresses you will be under;
- the level of commitment you will be making.
If you are looking to ‘sell’ knowledge or expertise, previous and often prolonged work experience will be essential for you to develop the necessary knowledge, contacts and professional credibility. There are numerous initiatives aimed at students and some may be available through your university.
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