by Bob Gomersall, author of “Worthwhile Wealth: An Entrepreneur’s Guide To Success That Satisfies”
So what are you going to do about it?
You could look at changing your job, as most people do – or you could think about setting up a business. That may seem daunting but it is certainly worth a look, and there is plenty of evidence that lots of young people are doing exactly that.
What are the obstacles?
It is said that most people reject most of the ideas that come their way in less than five seconds. So take a bit longer to think about this one and think about the obstacles as you perceive them.
Is it money?
If so then think about the following.
Do you have some savings? Will your family help? Will your friends help? Can you get people to help you on a promise of shares in a business? Would family and friends invest in a share of the business? There is no one answer to each of these questions because everyone’s situation is different. It would be easier if you had financial support to fall back on, but some people don’t One of the case studies in my book (“Worthwhile Wealth – an entrepreneur’s guide to success that satisfies”) started with absolutely nothing, and was a single mum as well. Clearly it was very, very hard, but she was innovative, entrepreneurial and used her brain to work out how to get round this particular problem. There are always obstacles and lack of money is just one of them; but there are nearly always ways around the problems, and it is a case of thinking hard about it. A wise old businessman once told me that business is predominantly about thinking, and this is just one example.
Is it status?
Think hard about this. Do your family and friends really care about your status? Really? Ask them! I think you will find they are not as impressed by your current status as you think, and indeed they don’t care much if you do something entirely different.
If they do care then think about changing your friends. What kind of values have they got?!
Now it is true that a lot of parents want their children to have a “proper job”, with money coming in every month. You may feel the same, in which case another job might suit you best. But it is worth remembering that you are working for yourself and for your future, and there is no point in doing something just because it pays well. The happiest people I know are not the ones with the most money. It is those who do work they love, or feel they have control over their lives, or perhaps who feel they are doing something of value to the community. If they are well paid then so much the better, but it is no more a motivator then having a high status.
Is it fear of failure?
Well most people have this fear. Is it really fear though? To me fear is about physical danger and most people are a long way from that. So why do people have fear of failure? Again it is largely about what other people think. However in my experience most people are impressed when someone has a go at setting up a business, and this is partly a recognition of the courage involved, but partly because they often have the ambition themselves.
There are a lot of things you can do to ensure that when things go wrong – as they inevitably do from time to time – it is a setback and not a disaster.
Think in terms of small steps. What small steps could lead you to where you want to go? Maybe you can stay in your job whilst you take the first few steps. If are really lucky your employer may even help you. If not then it could be something for your spare time. I did it like that for many years until my business became too large to handle in that way.
One approach is to ensure that each step is not critical – so that if it goes wrong you can correct your approach ready for the next step. In this way a small “failure” is nothing more than an unexpected outcome, and something of value has been learned – and you can continue on your journey.
It is not easy, but you will be free to make your own decisions! Many people find this is so much better than being told by a boss to do things that don’t make sense.
Focus on what matters to you
How do you decide what to do? You may have a burning vision, in which case it is obvious. On the other hand you may have to think a bit more deeply about things. What do your enjoy doing? What gives you a sense of purpose? What would benefit others, such as your community or society in general?
This really addresses the question of “Why” you want to set up a business. Knowing why you are doing something provides a long term vision that can help sustain you when things don’t go to plan.
It is also worth thinking about scale. Many people are happy with a small business because they don’t fancy the hassle of managing people. In fact the vast majority of businesses are very small, with less then ten people, and many do very well indeed.
On the other hand you may wish to build a business empire – and most of the jobs in our economy are created by such people, who represent only a few percent of the population.
So would you like to build a large company, or a one person business – or something in between? It is worth answering this honestly. In fact a lot of business involves being honest with yourself, and not pretending things are as you would like them to be rather than as they actually are. In brief you need to be realistic if you are to make the right decisions. It is not rocket science, but rather it is a lot of common sense.
Get Going
At some point it pays to just get going. Think about your vision, do things in small steps, seek advice, and keep thinking about whether what you are doing is working. Above all keep your eye on two things – sales and cash. Unless people are willing to pay for your service or product then ultimately it will go nowhere. So you must have some idea what you can sell. It may be hazy to begin with, and you may change your mind as a result of trying things or talking to people, but sooner or later you have to start selling.
The other side of it is that if the cash runs out you have no business. That is simply a case of making sure you do not spend more than you have – or can raise or borrow. It is very simple but many people forget this. You may have to take actions that are not attractive, like taking a part-time job, or making somebody redundant, but there is always a way if you think hard about it, are honest with yourself and have ensured that you are prepared. Early in my business my parents did a lot of the work assembling my products, and sending them off – paid on the basis of a percentage of the sales. This way the risk was minimised early on. This is just one example of the possibilities. Retired family members can be very helpful!
Is it worthwhile?
Most of the people I know who have their own business – large or small – say they would not change it. They like the freedom, the autonomy and the opportunity to set their own destiny – even if, as in some cases their earnings are not very great.
Remember that business is about risk minimisation, rather than just taking risks. Work out where you can get some sales from, and check that that you are being realistic. You must have some income eventually, and the cash can never be allowed to run out!
So if these ideas appeal you can always have a go, and if you do it sensibly there is very little to lose and a lot to gain.
Dr Bob Gomersall worked as a theoretical physicist at the Max Planck Institute, Stuttgart. He founded his first business (BTL – now known as Surpass Assessment) as a ‘side hustle’ in 1985, followed by Virtual College in 1995 and Advanced Digital Innovations in 2005. Bob has a particular interest in innovation. He is a ‘Business Angel’ and has invested in a range of start-up businesses.
