Starting a Business After Redundancy
Facing redundancy can be incredibly confronting.
But what if we told you it could also be the start of a brand new career? A career based on your interests, your lifestyle and your aspirations.
Sounds too good to be true, right?
With these five steps, we can help you transform your redundancy package into your very own startup:
- Take advantage of your notice period
Typically, you’ll need to work a notice period. So, instead of worrying about what comes next, use this time to start planning your new venture (off the clock, of course).
Dive into research, enrol in training and network as much as possible. The sooner you can start, the better! After all, wouldn’t you prefer to plan for your future whilst you’re still on the payroll?
- Develop a business plan
Success is all about strategy. So don’t overlook the importance of developing a business plan.
Now, every business plan will look slightly different. But the main areas you want to focus on are the:
Executive summary – create a brief overview of your business detailing what services you offer and what you intend to achieve.
Management bio – this is your opportunity to introduce yourself, your values and your professional experience.
Marketing plan – identify your target audience, USP and market competitors before explaining how you intend to attract your desired audience.
Financial plan – because you’re just starting out, your financial plan will be primarily made up of projections (sales projections, expensive projections, cash flow projections etc.). So, make sure you’re thorough with your research if you intend to achieve accurate estimates.
Your business plan will become the blueprint for your company, so the more information you can include, the better. Particularly if you want to attract investors!
- Address any legalities
To establish a legitimate business, you need to fulfil certain legal requirements. Now, these requirements may vary depending on your business model and industry, so it’s always worth checking whether you need to obtain a specific type of permit or insurance.
(You can find these answers by visiting the government website or checking with your relevant industry bodies.)
- Open a business bank account
This next point is directed specifically to our sole traders.
Although you don’t have to open a business account, we strongly suggest you do. Why? Because it makes bookkeeping 10x easier! So unless you want to waste your time separating your expenses and risk receiving a penalty, you should seriously consider setting up a business bank account.
- Set yourself boundaries
Starting a business is an exciting endeavour. However, it can become all-consuming. So, for our final point, we wanted to discuss the importance of setting yourself boundaries.
Firstly, give yourself some grace. Redundancy is incredibly difficult to navigate, so try not to be too hard on yourself – especially during those early days.
And secondly, start as you mean to go on. Give yourself lunch breaks, take time off and allow yourself opportunities to relax. Only then can you avoid burnout and achieve sustainable growth.
No one wants to be made redundant – but that doesn’t mean it has to be all doom and gloom. Instead, this could be the start of your exciting adventure into entrepreneurship! So take the chance, pursue your passion and totally transform your career. You may just find redundancy works in your favour.
For further help, contact McCarthy Browne.