How to transition from an unemployed to an entrepreneur effortlessly?

According to Enterprise Nation founder Emma Jones, “Recessions are well-known for motivating people for start-ups, and it’s usually down to unemployment. Individuals want a side hustle apart from part-time income.” Thus, there lies an appetite among young and old to start a business in the UK.

Not everyone shares the clarity and needed skills to run a business. Regardless of the fact, many individuals want to begin their journey with available resources to supplement their income and support their families financially.

With the costs of living rising in the country with minimal employment opportunities and hopes, entrepreneurship garners the attention of the unemployed. This is because unemployment puts an additional burden on lifestyle needs and liabilities. They find it hard to balance their priorities and live a decent life.

What drives an unemployed to choose entrepreneurship?

Some many liabilities and reasons provoke an out-of-job personality to take the challenge. Starting a business without money is possible but difficult. Despite that, individuals want to take the chance because:

1) To pay the mortgage and bills

Around 53% of household women believe beginning a business will help them meet liabilities like bills and mortgage payments.

2) To supplement part-time work and contracts

While part-time income may support unemployed individuals with basic needs, it may not help create a lifestyle. It is the reason around 44% of individuals want to start a business.

3) To increase income prospects

Around 33% of individuals believe in improving their income with a well-running business. It will help counter emergencies and liabilities easily.

Step-wise ways to start the journey from unemployment to entrepreneurship

It is not important to have prior experience to run a business. Hunger and personal initiative usually dominate the public narrative of entrepreneurship that centres on successful male entrepreneurship”. The transition from unemployed to entrepreneur forms a pattern.

It includes elevating themselves from an existing position to a new personal identity. Losing a job implies losing identity, structure of life and a defined place in the social structure. Unemployed persons can rise from the existing space by exploring income venues. Here is how you can do that:

a) Research the domain

Just like the saying, “Look before you leap”, you need to look at the facts before you start your first business.  It is about the research part. You cannot start a business without knowing what you want to start with. Explore the niches that you share experiences or know a little about.  

When you get a product with a future potential, explore the competitors working. What are their strategies and how do they grow? It will help you create a unique take.  Moreover, explore their social media pages for their recent takes and approaches.

b) Develop a business plan

Create a business plan after researching the industry, target audience, demographics, customer requirements, investment and product manufacturing costs. It requires you to know what you want from the business.

It states your values, mission, investments and the revenue numbers you plan to achieve with the strategy. It is the most essential part of gaining good funds for your business.

Tips to attract investors’ attention with a business plan:

• Clear details of how you will utilise the money
• How will you make it profitable for them?
• What is the expected return on the investment?
• What percentage of shareholding do you offer?
• How many parts may they play in decision-making?

c) Find the right funding person/organisation

It may take you some time to launch a creative business plan. However, analyse it for the potential aspects that you can use to attract investors. Moreover, dealing in a similar industry as your competitors, you must have something unique to get more funds. As an unemployed, you cannot take business far with what’s available.

There is a way to finance your business, including loans, investment capital, and government grants. Facilities like New Enterprise Allowance (NEA) can provide money and capital to help people begin their businesses if they receive certain benefits. NEA provides support to some Universal Credit claimants with an existing business.

New Enterprise Allowance (NEA) weekly allowance worth up to £1274 in total for 26 weeks. In addition to that, check loans to help with the costs of starting your business.

The allowance may not be sufficient to counter other business needs like- hiring, equipment purchase, marketing, office set-up, etc. Here, you may check easy small business loans with no credit check requirement. You can use it to finance important business needs without sabotaging your credit score. Although the amount you may get here may be low, it is sufficient to begin the business gear

d) Market and advertise your business

It is the most essential part of running a business. Initially, you can leverage free ways to market your product, like- launching samples, email marketing, social media posts, giveaways, podcasts, etc. However, go the extra mile to gain a whopping audience and customers for your brand.

 It is about leveraging paid marketing platforms like Facebook and Instagram marketing to attract interested customers to your offerings. It will help you gain the needed awareness and visibility and expand your business. However, you would need a definite marketing budget and strategy to succeed. If you have the strategy, analyse the best ways to monetise it.

Well, you may ask your known ones to help you out, but as a professional, you must see beyond. You may check loans for the unemployed with bad credit with no guarantor from a direct lender for your needs. These loans for the unemployed without a guarantor support help you manage the financial issues independently. It restrains you from waiting endlessly or expecting someone to help you. Instead, you can finance the advertising requirements without delay.

Bottom line

When one thinks of becoming an entrepreneur, he refrains due to the risks and uncertainties involved. However, one can transition from unemployment to a business owner with a clear plan, knowledge, research, and expertise. It may take you some time initially to work as a lone wolf. Gradually, you may build up the team and run your business efficiently.

Moreover, facilities like loans, New Enterprise Allowance and other government grants ease up the financials. You can scale your business walking by these easy-to-accomplish steps.