Before taking such a step, ask yourself if you are fit and energetic enough for self-employment. How would you feel about taking business calls at 9 pm on a Friday evening or spending an entire Sunday putting together a tender for a job which you may not be offered? Try to take a realistic look at the business you are thinking about establishing. Do you have the skills to produce these goods or offer these services and, if so, what are your chances of success? Is your idea unique or are there other people swimming in the same pond?
You will also need to consider how to finance your business and see it through the early years when the outgoings may often seem to be larger than your income. Most likely, if you seek a business loan you will have to produce a business plan which offers a realistic estimate of the initial costs you will incur and the income your activities will generate. The plan will have to highlight periods when outgoings could exceed income and predict eventual profits. The plan may need to be detailed and explain how you arrive at the unit cost of the item you intend to make or sell. Initially, many small businesses make over-optimistic predictions about how cheaply they can market their goods or services. Only later do they appreciate the full extent of the expenditure which they incur through their activities. Poor preparation or an over-optimistic view of the possibilities is a major cause of cash-flow problems for many fledgling businesses. As in all things - careful research and preparation are the key to success.
By now, it should be clear that skill in one particular aspect of work is not enough to guarantee successful self-employment. Electrical skills, for example, are the basic requirement for a self-employed electrician, but, in themselves, they will not guarantee success. To manage his own business well, an electrician needs to be able to work out the price of jobs and to advertise and market his services and manage his time effectively. He should be highly organized, able to understand simple book-keeping and office practice, and be a good decision-maker, supervisor and negotiator.
If you are excited by the challenges of self-employment there is a good deal of help and advice available. Most banks offer special support for new businesses which includes free advice on business planning and initial financial support packages. Your local Training and Enterprise Council (TEC; LEC in Scotland) is responsible for business and enterprise training. TECs can help you with raising finance, market research, taxation, viability, legal matters, business plans and cash-flow forecasts. You may also be able to discuss the possibility of obtaining a business start-up allowance during the crucial first year of operation.
You are a human being with dignity and self-respect. You have beliefs and values central to your make-up and you know that some people hold you dear. Getting a job is important but it is not the only purpose of your existence. Pity the poor employer who cannot see your true worth. An employer who fails to appreciate your potential or who undervalues your experience takes nothing from you. You remain as skilled and experienced as before. It is his loss not yours. There may be times when you need to work at a level beneath your capability or lower your sights and take on work which carries less responsibility than before but you are no less a person for that.
Seeking a job can be a hard, lonely and depressing experience. Failure to seek a couple of jobs can damage your self-image. In work or out of it, you can keep your self-respect by putting more energy in those other aspects of your life which are important to you and giving more to those for whom you care. If you are active in promoting the well-being of others you will be valued and the respect you earn will ensure that you remain aware of your worth.
Further information
The Daily Express Guide to Being Your Own Boss, 2nd edition, David McMullan (Kogan Page, 1997)
The Daily Telegraph Guide to How to Set Up and Run Your Own Business, 15th edition (Kogan Page, 1998)
The Daily Telegraph Guide to Working for Yourself, 19th edition, Godfrey Golzen and Helen Kogan (Kogan Page, 1999). It is a goldmine of information for anyone considering taking the plunge. A list of helpful start-up books is available from Kogan Page.
Getting Started: How to Set Up and Run Your Own Business, Robson Rhodes (Kogan Page, 1997)
The Small Business Action Kit, 4th edition, John Rosthom, Andrew Haldane, Edward Blackwell and John Wholey (Kogan Page, 1994)
Starting a Successful Business, 3rd edition, M J Morris (Kogan Page, 1996)
