Start Your Business Magazine - 1st August 2014
Now summer has officially started, millions of workers across the UK will be counting the days until they can jet off for their Summber holidy, but instead of switching off, many of these vacationers will actually immerse themselves in planning the launch of their own business.
According to a survery of 1000 small business owners (who have successfully been in business for over five years), nearly one in five (19%) of them thought up their business idea whilst on holiday. Sandler Training (UK), a business development consultancy, commissioned the research to get insight into what makes people start their own businesses and the main obstacles they have to overcome in the first year.
The reserch found that the main issue that held small business owners back from starting their business was the need to take a salary (34%), followed by concerns about job security (25%), lack of knowledge about how to run a business (21%) and uncertainty about competition (19%).
For nearly half of small business owners (49%), the main factor that prompted them to take the leap and start their own business was interest from potential customers, followed by funding (31%). Friends typically offer the biggest support to start a business; 30% of small business owners said that friends gave them the most encouragement to start their business, followed by partners and colleagues (both ar 22%). The average amount of time between thinking up an idea and starting a business is 6.3 months, but for 16% of small business owners it took over a year.
Shaun Thomson, CEO of Sandler Training (UK) comments, "Having a rare moment to unwind can actually be the perfect time to think up a winning concept for a business idea. Although it may be hard to imagine whilst you are packing your suitcase, you could be running your own business by Christmas."
"But if you do get inspired, it could be wise to watch the pennies whilst you are away. Our research also demonstrated that small business owners are having to go into personal debt to fund their startup, and are spending an average of £3,511 via loans and credit cards, so they can afford to live before they can tale a salary from the business."
If the idea does hit while on holiday, it is also advisable to make the most of the relaxation period while you can. The small business owners outlined that they worked on average 56 hours a week in their first year of business - over 49% more than the UK average of 37.5 per week. This increased further in the Capital, with entrepreneurs in London working an average of 69 hours a week in their first year, 89% more than the UK average.
Mr Thomson adds. "Having a great business idea is just the first step. Many entrepreneurs find themselves overwhelmed in the first year by how much they need to learn. Having a clear business development plan and process for sales is key for business success.Britain is becoming far more entrepreneurial, over 500,000 businesses launched last year - it's great to think that after the summer holidays, tens of thousands more businesses will be founded before the year is out."