Lost your job due to Covid-19? 7 myths on entrepreneurship

As the furlough scheme has been gradually winding down, across the country, there have been numerous redundancies. The economy is falling into one of the most extreme recessions of all time, and the impacts of that are to be felt keenly.

With job losses looming and Universal Credit hardly offering enough to survive on, it is no small wonder that many people wish to start their own businesses. Running a business would provide individuals with freedom, a shift in dependency and potentially the ability to make more money than they could working for someone else.

With the rise of the gig economy, jobs have never been less secure. While the gig economy has some benefits, such as flexibility, it has also introduced a sort of “at will” hiring and firing situation, and offers employees very few benefits, such as holiday pay, sick pay or severance pay.

The fact of the matter is that the workers of today have to keep on their toes to find their next source of income. If we throw Covid-19 into the mix, there is now going to be mass levels of unemployment in certain sectors, which will inevitably place the economy under even more financial pressure, as it strains to support the unemployed.

Why start a business?

Starting a business can be far more rewarding and exciting than the drudgery of going to work every day. Lots of people in recent years have combated instability and maltreatment at work with side hustles.

Having multiple strands of income means you are not putting all your faith into one source, which could potentially end at any point. Being self-employed also means you keep most of the money you earn. If you are a builder being paid by a contracting company on a zero hours contract, you might as well become a freelance contractor.

Pretty much any skill you have is potentially monetizable. With websites such as fiverr.com and bidvine, there are a growing number of both clients and professionals who want to cut out the middle-man that is the corporation.

We have established that there are opportunities ripe for the taking.

7 Entrepreneur myths debunked

  1. You need to be experienced at entrepreneurship
    Plenty of aspiring entrepreneurs are put off the idea of starting their own business, because they feel unconfident in their own abilities to do so. It is actually through failure that we learn: When a baby falls over while taking its first steps, do we give up on it? Use your lack of experience as a motivator to learn more and go with your gut.
  2. There’s a right time to start your business
    Nobody is ever truly ready for anything life-changing. There is no need to consult almanacs and the stock market to decide when is the perfect time. This is because the most successful businesses grow steadily, consistently and solidly. You cannot rely on external factors to sweep you up and carry you over the finish line.
  3. You need a complete business plan
    Sometimes a business plan is really useful. It’s important for getting your thoughts in order, and it is also useful to show to potential investors and sponsors. However, if you make it too detailed and stringent, you may lose the ability to improvise. It is important to retain some degree of flexibility while running a business.
  4. You need tonnes of capital
    Yes, you do need some money to start a business. However, you can also start very small, producing only what you can afford and gradually increasing your margins.
  5. You have to work constantly
    It is important to take some rest. While you are running your start-up, you will need to work hard, but make sure you set strict boundaries with yourself about when you are checking emails, doing calls or other admin bits.
  6. You have to hire staff
    At first this may not be necessary. Take on the amount of work that you can personally manage, and then later on, when you can afford staff, and feel they would bring you additional income, do hire them.
  7. You can just ignore your taxes and they will go away
    One of the greatest myths among business start-ups. Taxes are, to the untrained eye, scary, stressful and mysterious. However, if you ignore them and pretend they don’t exist, you most likely will encounter a nasty surprise in the form of thousands of pounds in fines. It is important to be proactive with your tax and keep on top of the regulations put in place by HMRC. Ignorance is never accepted as an excuse when appealing fines.

How can Aston Black help?

At Aston Black, we take all the stress of taxes away. We are a small yet highly experienced firm of accountants in Milton Keynes, who offer services to support you in your journey from idea to thriving start-up. We are here to offer you advice, reminders and even advocacy when dealing with HMRC. If you need any help with anything from tax returns to bookkeeping, to IR 35, get in touch with us for a free consultation.

Our team of dedicated accountants will gladly assist you.