One in four Brits dream of launching their own business, and a new study suggests they believe 31 is the perfect age to take the plunge. The survey of 2,000 adults found that among those keen on the idea, 60% think about setting up on their own at least once a week, with 15% saying it crosses their mind every single day. Meanwhile, 26% say it is their ultimate career ambition.
Fear of failure holds many back
Eight in ten of all adults surveyed look up to those who have built companies from scratch, admiring their drive (49%), confidence (38%) and resilience (29%). Yet despite their aspirations, 71% fear they would fail. Many would-be entrepreneurs are deterred by concerns over financial insecurity, as well as a shortage of skills, experience and professional contacts.
The research was commissioned by giffgaff to mark the launch of its new YouTube series, The Board, which sees aspiring entrepreneurs compete for the opportunity to grow their business ideas with guidance from industry experts.
Start-up costs remain a major obstacle
Kate Dohaney, CEO for the mobile and broadband provider, said: “It's clear there’s a huge amount of ambition across the UK, with people looking for new ways to build something of their own, develop an idea or take the next step in their working lives.
“But there are also very real barriers around confidence, support and access to practical guidance. We’re passionate about helping people make their next move, whatever that looks like for them. That’s why we created The Board - to give people useful insight, encouragement and practical support to help them move forward with more confidence.”
The research revealed start-up costs remain a significant obstacle, with respondents estimating it would require an average of £28,000 to launch and establish a small business. Others link being their own boss with stress and pressure (36%), and lengthy working hours (33%), according to the OnePoll data.
Rewards outweigh risks for many
Still, the rewards continue to outweigh the risks for many - with being in control of your own future (33%), greater job satisfaction (29%) and the freedom to work from anywhere (21%) among the advantages of self-employment. Many also reckon entrepreneurship can deliver positive impacts beyond work, with an improved work-life balance (17%) and making a positive difference (15%) among the broader lifestyle perks of running your own show.
Patricia Bright, expert on The Board, said: "If you can solve a problem, teach a skill or create something people enjoy, there's often a way to turn it into income. The biggest mistake I see is people waiting until they feel completely ready, when in reality, confidence usually comes from taking that first step rather than having all the answers from day one. Whether you're 21, 31 or 51, the most valuable thing you can do is start learning, testing your ideas and building momentum."
Patricia’s top tips on starting a business
Start before you feel completely ready. You can spend forever perfecting a logo, website or business plan. At some point, you need to put something in front of a real customer. Your first version probably will not be your best version, and that is completely fine. Start, get feedback and improve.
Know exactly who you are selling to. Everyone is not your customer. Get specific about the person you are helping, the problem they have and why they should choose you. When you understand your customer properly, everything from your product to your marketing becomes easier.
Learn your numbers, even if numbers are not your thing. Revenue sounds exciting, but revenue is not profit. Know what it costs to deliver your product or service, what you actually make from each sale and how much money you need to keep the business running. You do not have to be an accountant, but as a founder you cannot be afraid of your numbers.
Do not spend like the business you hope to become. You do not need the expensive office, huge team or perfect branding on day one. Keep your costs lean and spend money on the things that help you make a better product, reach customers or generate revenue. Looking successful and building a successful business are two different things.
Your first idea does not have to be your forever idea. Some of the best decisions I have made in business have come from being willing to change direction. Listen to what your customers are telling you. Pay attention to what is working rather than becoming attached to your original plan. The goal is to build something that works.
Patricia’s golden rule: You do not need to know everything to start a business. Know your customer, know your numbers and be willing to learn quickly.
