Brits Urged To Seize 'Best Time In History' To Start Their Own Business

Is Now The Best Time To Start Your Own Business?
|
Open Image Modal
portrait of a successful...
shutterstock

Britons have been urged to seize on the improving state of the economy and start their own business, as new research to mark the start of Global Entrepreneurship Week showed that British entrepreneurs are set to enjoy soaring revenues.

Speaking to the Huffington Post UK, serial entrepreneur Luke Johnson, who once ran the Pizza Express restaurant chain, said: "You could argue that now is the best time in history to start your own business in Britain."

"The economy is now growing pretty strongly and that's very helpful. I think the ever increasing importance of the digital economy means it's much cheaper to start a business, much quicker to experiment, quicker to fail and try something else."

"Next year we could well grow at 3%, that'd be easily the best rate in the OECD and we should be very grateful for that. We've had 5 or 6 years of stagnancy so 3% is epic compared to what we've had over the last few years."

Johnson's comments came as research released today to mark the start of Global Entrepreneurship Week revealed an increasing optimism among British entrepreneurs.

Andrew Devenport, CEO of Youth Business International (YBI), which is behind Global Entrepreneurship Week in the UK, blogged on HuffPostUK: "It's encouraging to know that there is now an increasingly bright light at the end of the tunnel for UK entrepreneurship. The current picture is much more reassuring."

According to the YBI's "Entrepreneurial Environment" report, 50% of British entrepreneurs expect their revenue to increase by 30% or more by 2016 while 90% are expecting an overall increase in revenue.

The research also found that 30% of British entrepreneurs are expecting to start another business in the next year, with the figure rising to 53% for first-time business owners. The findings reflect positive news for Britain's employment as most of the business owners (76%) say they will be employing up to 20 people three years after starting.

Luke Johnson, who also part-owns and chairs Patisserie Valerie, Gail's Artisan Bakery and Feng Sushi, told HuffPostUK that Britain was doing "pretty well" as a global hub to start up a business.

"I'd much rather be starting a business here than in the eurozone. Culturally I think we have embraced the idea of risk taking and wealth creation much more than in the past, which i think it's very positive.

"Entrepreneurship offers the freedom and the avoidance of office politics. The era of a job for life with a final salary pension scheme in the protected public sector is history for the most part. I think running your own show has became a much more friendly thing to do, whether it be a for-profit business or a social enterprise."

Johnson, who recently warned that TV shows like Dragons' Den and the Apprentice risked putting people off business, said: "I think they do distort the reality of running your own business. You're not able to fire people like Alan Sugar can and real venture capitalists don't invest in the way the Dragons pretend to on telly.

"I accept though it's entertainment and not a documentary, so they're after audiences rather than absolute truth - at least it does raise the profile of entrepreneurs in society."

"If you want big audiences, you have to have conflict and you have to pick extreme candidates and so the reality of day to day business is much more mundane. It isn't show business."

See also - 10 Business 'Essentials' You DON'T Need To Succeed

Business 'Essentials' You Don't Need To Succeed
Originality(01 of10)
Open Image Modal
You don't need your own business idea, you just need to do it better than everyone else.Retail mogul and ex-Dragon Theo Paphitis admitted:"I've never had an original idea in my life. I just look at other people's ideas and execute them better". He's worth an estimated £210 million.
Any Specialist Knowledge Of Your Sector (02 of10)
Open Image Modal
Just look at Virgin boss Richard Branson, who is worth nearly £3 billion ($4.2 billion). Branson's Virgin Atlantic Airways soared to £1.73 billion ($2.7 billion) in value. Not bad for a guy whose previous experience was in the music business. He's said to have quipped "you don't need to know how to fly a plane to run an airline". To show that Virgin Airways isn't a one off, just look at his latest venture Virgin Galactic - offering customers the chance to blast off into space. Do you think Branson is a trained astronaut?
Lots of Money (03 of10)
Open Image Modal
You just need an idea - what on earth your business will do.You can try to get enough funds from business angels or alternative funding sources like peer-to-peer lending. Or if you can't get any money at all, you just need to know how to work best with what you've got . The story of one red paperclip covered a man's journey of swapping his way up the ladder from one red paper clip to his own house. He didn't have to pay anything as he relied on his bartering skills.In the same way, you never know what assets you can use to raise money, whether it be pension-led funding or your house.
Employees (04 of10)
Open Image Modal
You may have to do more yourself but you can save costs without forking out for a huge team. Entrepreneur Pleurat Shabani built up his Vodka brand "Konik's Tail" all by himself into a drink now rated as one of the world's best Vodkas, with the business worth £1m. He even goes as far as producing every bottle of vodka himself too thanks to his shoestring budget. If you're not up for such a slog, you can always outsource tasks like production for your business elsewhere. if you're not up for getting permanent staff in, you can always
Profit (05 of10)
Open Image Modal
That's right, you don't even have to make a penny in profit to build up a major business.Instagram was snapped up by Facebook last year for $1 billion, despite never making a profit.Meanwhile, YouTube was bought by Google for $1.65bn in 2006 - despite the online video site never having made a profit.
Good Press (06 of10)
Open Image Modal
You can cut through and get business success without having everyone like you.As hard as that may be to believe, just look at low-cost budget giant Ryanair and their chief executive Michael O'Leary. Despite the press, Ryanair have grown to be Europe's largest discount airline.
Advertising (07 of10)
Open Image Modal
The cast of Mad Men would be furious to hear this, but you don't need to fork out for big adverts to get customers mad about your business.Massive billboards may be nice to book, but are they really worth it to get the punters interested? With free social network outlets like Facebook and Twitter, you can advertise your business however you like. The internet means that a customer wanting what you have can stumble across you in the end. And when customers start to try out your business, the word-of-mouth spread can be all you need for its popularity to soar.
A Business Plan (08 of10)
Open Image Modal
Some may swear by thrashing out a business plan, but really it can get you bogged down on procedure and bureaucracy.Meanwhile, other start-ups can go out there, thrive and adapt what they do once they get a feel for the market and how customers feel about them. As author Dr. Alexander Osterwalder said: "I don't want you to ever write a business plan again because it's a waste of time."
Charisma (09 of10)
Open Image Modal
Boring guys can still succeed, as much as the swaggering tycoons like Alan Sugar and Donald Trump may try to suggest otherwise.Many top entrepreneurs are known to not like giving interviews, while very media-savvy figures don't have businesses in the rosiest of health.Take new Dragon Piers Linney as an example. His company Outsourcery may be valued at £34.6m, but his firm is still in the red, posting pre-tax losses of over £10m in 2012 alongside just £3.6m in revenue.
An Office To Base Yourself In (10 of10)
Open Image Modal
Offices rather can be a thing of the past, as business rates make running an office rather expensive for a young firm.With the spread of laptops and smartphones, you can take your "office" with you.