More and more graduates are starting their own business as soon as they leave university. A recent study by StartUp Britain showed that 63% of students are looking to start a business and more freedom and being their own boss are the key motives for going solo.
In such tough economic times, jobs are in short supply. In February to April 2013, 950,000 young people aged 16-24 were unemployed in the UK, which is down 60,000 on the previous year. However across Europe as a whole, youth unemployment is not looking that great.
So it’s no surprise to hear that many young individuals are taking their careers and financial future into their own hands. Starting your own business at any age can prove difficult but it can be extremely rewarding.
It’s a big decision to make and not one that should be made lightly. According to Adam Livermore from www.realbusinessrescue.co.uk various aspects that you need to consider but the return can certainly be worth it.
Success stories
Just take Jamie Murray for example. The entrepreneur and friend of Prince William is the owner of Prescription Eyewear Limited which trades as Glasses Direct. He started the firm whilst studying at university after discovering how expensive glasses are.
Upon doing some research, he found that a £150 pair of glasses only cost £7 to make so he set about using his student loan to fund his own business to sell glasses at a reasonable price.
Has it proved successful? Well in the first year of business he had a turnover of £1 million. In 2013, turnover reached more than £10 million per annum.
So, what things do you need to take into account?
· Get free business banking/advice
There many avenues that you can go down to get free financial advice. If you are aged 18-30, you can contact The Prince’s Trust for support. The reality is that you are going to need money to finance the business for start-up costs etc. and a student loan can only go so far.
Do you need an investor? Will you need to take a salary?
The government has a guide to starting your own business and Barclays offer free business banking for two years within the first 12 months of trading. They also offer free seminars and advice on profitability, employing staff and credit control.
NatWest also offers two years’ fee-free banking as well as fee-free overdrafts in the first year; and small business loans are available from £1,000 to £25,000.
· Utilise marketing efforts
You could have the most amazing idea for a business but if no-one knows about it, what’s the point? Utilise all marketing channels including business cards, social media, email and content marketing to get the word out. The faster people know about you and your business, the quicker it will take off.
Fun ways to market your business using social media and your mobile include LinkedIn, Instagram, promoted tweets, Facebook’s promoted posts and a QR code.
· Use your degree and take what you have learned to build a new business
It’s important to use everything that you have learned whilst at university to build an innovative, fruitful business. You don’t need a degree to run a business but core elements of your studies can prove valuable.
Yes a business and marketing degree is useful but you can still get insightful information from a communications course, accounting and finance, or an IT, engineering or science degree. You’ll learn analytical skills, critical thinking and how to process data which are all really valuable skills.
· Younger can be better
It’s less risky to start a business after university than when you have a mortgage and kids. If you have been thinking about starting your own firm there is no better time than now to grab the bull by the horns and give it a go.
Now is the perfect time- you have no responsibilities or ties and if you fail, so what? You have the rest of your life to learn from your mistakes and get back in the ring.
Buying a house and having children demands a certain level of accountability. You have an obligation to put food on the table and a roof over their head. This means you can’t take risks and starting a business is a case of Russian roulette. You might score big but you may also fall flat on your face.
As with anything in life, there are both advantages and disadvantages to starting a business fresh out of university. There will be ups and downs and you need to prepare yourself for success and failure but fundamentally, it is an exciting rollercoaster to be on and it is definitely worthwhile.