As a business owner, there is a lot for you to think about. Think about your personal resources, and how best to use them.
You are the person who is responsible for everything initially, from finances to making coffee for meetings, and it is therefore well worth thinking about whether you have the time and competencies to handle all these tasks yourself. You also need to know that you have the support of your family and friends.
You must be certain that your spouse, family and friends support you in your decision. All newly started business owners find that running your own business is synonymous with long working hours and not a lot of time off. 60 to 80-hour working weeks are not uncommon. Therefore it is also likely that you will have to put aside your leisure activities. Moreover, your family finances might suffer for a while because you have to forgo a regular monthly income.
Having a good network is invaluable. You may find your network among your family and friends, through your leisure activities, a local business network, among former colleagues etc. A lot of business contacts arise because someone knows someone else who has done a good job for a third person.
Many businesses do not require much in terms of financial resources at the outset. A consultancy or software company doesn't normally need to invest a lot to get started. Usually, it is possible to make do with a telephone, a computer, Internet access and a car, items which most people in Denmark already have.
For retail businesses and development businesses such as IT and production companies, more startup capital is required for investments in, e.g., premises, machines etc. You need to draw up a realistic budget.
Seek the advice of your bank, an investor or a local business consultant.
If you start a business on your own, you must remember that you are your own managing director, sales, finance and marketing manager, HR manager and odd-job man. It is important to clarify which work functions you can handle and fit in. For example, a lack of financial management tools is a common reason why newly started businesses fail. You also need to decide whether you have the time and inclination to look after the administrative tasks, or whether you can afford to pay someone else to do them.
What you also need to think about
- VAT returns
- Agreements with the tax authorities
- Sending out invoices and following up on unpaid invoices
- Budget follow-up
- Manning the telephone