Starting your business from scratch

I carried out a lot of research before deciding that that I wanted to start from the ground up, it wasn’t a decision that was taken lightly. Plenty of businesses were visited, with varying price tags, but none really caught my imagination, and all needed re-modelling of some kind. There was no guarantee that altering an existing business, by means of re-decorating, renovating or replacing equipment, was going to be cheaper than starting from scratch with an empty shell of a shop. This was the deciding factor against buying a going concern.

There is a major benefit to investigating sandwich shops that are for sale, even if you have no intention of actually buying one. As a potential buyer, you are shown around the whole operation, including food preparation and public serving areas. It’s a great way to get ideas and see how things are done, and also to see how some things shouldn’t be done!

Advantages to starting your own sandwich shop

• You can start with an empty shell of a shop and fit it out just the way you want it, like a sculptor starting from a block of stone, or an artist with a blank canvas.

• The refrigeration and other equipment will be either new or from known sources, not someone else’s ‘clapped out junk’, with potential mechanical faults.

• The money you spend will go towards the actual business start up costs, there won’t be any ‘Goodwill’ to pay. When you buy a going concern, you are paying for the fact that the business already has a customer base. The goodwill of this customer base is often of debateable value.

• You get to choose the location of the shop, based on your own criteria.

• The satisfaction of actually starting a business is greater than just buying some else’s

Disadvantages

• It can be harder to raise finance, lenders are usually more wary of business start ups.

• The process of starting a business involves a lot of steps, each requires co-ordination. You will function as overall project manager. This means handling all aspects, from finding a location to overseeing tradesmen fitting out the shop.

• Costs for the project can rise unexpectedly unless you keep a firm grip on them

• There is a danger that you spend forever investigating and researching, without ever actually committing to the business.

Starting your own business can be daunting, but if you break the whole project down into small steps, the concept does become manageable. A flow chart offers a practical way to lay out each step of the business process, it’s a method chosen by a lot of new business people.

The important thing is to put all of your ideas and thoughts onto paper, and take it from there. It’s the best way of organising everything into a kind of logical order. You can’t keep it all in your head, performing a juggling action from one thought to another, that’s just not practical.

I simply used an A4 pad and wrote a list of what had to be done. As each task was completed, it was crossed off. It might sound simplistic, but it worked for me. This won’t be the only list you make, but it can be the master one. The major tasks on your list should correspond fairly closely to the chapters in this book, although the order you carry them out might differ.

I can’t pretend that starting a business is easy, its hard work and there will be times when you are dog tired, stressed out and irritable, when nothing goes right, and you doubt your own sanity for starting out in the first place.

Despite this, and admittedly I am somewhat biased, I believe the satisfaction and other benefits you get from creating your own business cannot be equalled by taking on a franchise or buying a going concern.

Sources of advice and information

Nowadays more than ever, there are plenty of sources to help you get off the ground. Over the past ten years or so, small business development has become a serious issue, its promoted right from government levels to the high street banks.

• Most of the major banks have a section that deals specifically with the needs of small businesses. They can provide you with start up information and advice on all aspects of the venture.

• Your local chamber of commerce – an invaluable source of information for the new and established business person alike.

• Business Link – Many publications available for download on www.businesslink.gov.uk or call them on 0845 600 9006. I regard this as one of the finest websites for the budding small business person. Information is laid out clearly and concisely.

• Small Business Service – A government run information portal which offers practical advice and information for the new start up. It is affiliated to Business Link and is well worth a look. www.sbs.gov.uk

• The Department of Trade and industry – Although this site is directed at the business world in general, it is the key website for anything business related and should be on your list . The information available to browse is truly vast. You can log on at www.dti.gov.uk

The more research you do, the easier your business life will be. For example when you deal with your accountant or solicitor, you will save a lot of time ( and fees ) if they don’t have to explain the basics of business to you. Since this information is available online and for free, it makes sense to take advantage of it.