Business startup ideas while on vacation
According to a survey of 1000 small business owners, (who have successfully been in business for over five years), nearly one in five (19%) of them thought up their business idea whilst on holiday. We commissioned the research to get insight into what makes people start their own business and the main obstacles they have to overcome in the first year.
- 1 in 5 startup ideas come to entrepreneurs whilst on holiday
- Average time between thinking up idea and starting business is 6 months
- Entrepreneurs spend over £3,500 on personal credit cards/ loans during start up phase
The research found that the main issue that held small business owners back from starting their business was the need to take a salary (34%), followed by concerns on job security (25%), lack of knowledge on how to run a business (21%) and uncertainty about competition (19%).
For nearly half of small business owners (49%), the main factor that prompted them to take the leap and start their business was interest from potential customers, followed by funding (31%).
Friends typically offer the biggest support to start a business. 30% of small business owners said that friends gave them the most encouragement to start their business, followed by partners and colleagues (both at 22%.)
The average amount of time between thinking up idea and starting business is 6.3 months, but for 16% of small business owners it took over a year.
Having a rare moment to unwind can actually be the perfect time to think up a winning concept for a business idea. Although it may be hard to imagine whilst you are packing your suitcase, you could be running your own business by Christmas.
But if you do get inspired, it could be wise to watch the pennies whilst you are away. Our research also demonstrated that small business owners are having to go into personal debt to fund their startup, and are spending an average of &ppound;3511 via loans and credit cards, so that they can afford to live before they can take a salary from the business.
If the idea does hit whilst on holiday, it is also advisable to make the most of the relaxation while you can. The small business owners outlined that they worked on average 56 hours a week in their first year of business – over 49% more than the UK average of 37.5 per week. This increased even further in the Capital, with entrepreneurs in London working an average of 69 hours a week in their first year, 89% more than the UK average.
Having a great business idea is just the first step. Many entrepreneurs find themselves overwhelmed in the first year by how much they need to learn. Having a clear business development plan and process for sales is key for business success.
Briton is becoming far more entrepreneurial, over 500,000 businesses launched last year – it's great to think that after the summer holidays tens of thousands more businesses will be founded before the year is out.
For more information, please visit: www.uk.sandler.com