Starting a business when unemployed

Starting your own business has numerous benefits ranging from the satisfaction of creating your own job to being able to do something that really interests you and that provides variety from day to day. Being your own boss also gives you a feeling of control over your time and working conditions and the opportunity to be creative.

You should think about assessing your skills and where you might need some extra development or support, eg creating a business plan and forecasting finances - see how to write a business plan: step-by-step.

Often the best path back into employment is through training and further education. Local Further and Higher Education Colleges provide a range of courses that can help you build confidence, explore and test out your ideas in a safe environment and develop the skills required to run a successful small business. Find your nearest college with nidirect.

There is a support system that can help you to develop your skills and turn your business idea into a reality - see support available for unemployed start-ups.

You can also use our Events Finder for business related training, workshops, networking and seminars from a variety of organisations.

The Northern Ireland business support finder is a searchable database that can help you find publicly-funded and not-for-profit sources of business start-up assistance you may be eligible to apply for. Support may be available in a number of forms, including financial assistance and free or subsidised advice services.

Identifying a strong business idea is the foundation of any successful venture. Fulfilling a need for a product or service that is not currently available or offering something new and unique provides an ideal platform for starting a new business.

The Invest NI Business Information Centre has a wide range of resources to help you carry out market research. Find out more about Invest NI's Business Information Centre.

When considering starting a business many unemployed find it helpful to identify any unfilled local demand. Being able to meet a local demand for a product or service that is not currently being met may offer an opportunity to start a new business venture.

Also by utilising any existing skills, expertise or areas of interest you may have will increase your chances of success and make it easier for you to make the transition from unemployment to self-employment.

Another route into entrepreneurship is to buy an existing business or franchise. This can offer a more secure starting point, allowing you to learn the operational aspects of running a business with an established brand, customer base, and support structure. - see buy a franchise.

Starting a business when unemployed presents many challenges but it is definitely achievable. There are some common sense steps that you can take, whatever the reason behind setting up your own business, which will increase your confidence in and likelihood of success.

It will be important for you to determine how you will fund your new business. Many unemployed do not have money themselves to start a business and will need to raise this from other sources - see choose the right finance when starting up and business financing options - an overview.

Careful financial planning is essential. It will also be important to understand how your unemployment benefits will be affected by starting up a business.

Advice and assistance is available to unemployed people seeking to overcome the barriers to starting a business from your local Jobs & Benefits office. For information on how your current benefits will be affected by you starting a business contact your local Jobs & Benefits office.

For further information see how to avoid common mistakes when starting a business.

As you develop your plans to start a business you will find it helpful to get as much advice as possible. Advice and support is available to business start-ups in Northern Ireland from:

• Go Succeed Start experts in your local council will help you to create a business plan, seek funding and put all the foundations in place to get your business up and running - complete a short enquiry form or call 0800 027 0639 to register for this free advice and guidance.
• Invest NI's regional office network offers training and advisory services to those starting up in business.
• Shell LiveWIRE help 16-30 year olds to start and develop their own businesses and runs an annual national competition for new business start-ups.
• The King's Trust provide start-up support including a range of loans and grants to 18-30 year old unemployed entrepreneurs.
• Your solicitor can help with forming a new business and review any legal requirements for your new business - see choose and work with a solicitor.
• Your accountant can help with preparing budgets and cashflow statements when seeking finance - see choose and work with an accountant.
• For ongoing skills and business development you can use our Events Finder for business-related training, workshops, networking and seminars from a variety of organisations.

The Northern Ireland business support finder is a searchable database that can help you find publicly-funded and not-for-profit sources of business start-up assistance you may be eligible to apply for. Support may be available in a number of forms, including financial assistance and free or subsidised advice services.

Many unemployed people have successfully set up businesses. By careful planning and through hard work and commitment they have been able to turn an idea into reality. You could do the same.

How do you know if you are ready to start up your business? Most unemployed people who have taken the step to start up a business have considered the following questions:

• Are you a self-starter? It will be entirely up to you to develop projects, organise your time, and follow through on details.
• How well do you get along with different personalities? Business owners need to develop working relationships with a wide variety of people including customers, suppliers, staff, bankers, and professionals such as lawyers, accountants or consultants.
• Are you comfortable making decisions? Small business owners are required to make decisions constantly, often quickly, independently, and under pressure.
• Do you have the physical and emotional stamina to run a business? Business ownership can be exciting, but it's also a lot of work. Can you face six or seven 12-hour work days every week until your business is up and running?
• How strong are your planning and organisational skills? Research indicates that poor planning is responsible for most business failures. Good organisation of financials, inventory, schedules, and production can help you avoid many pitfalls.
• How will the business affect your family? The first few years of business start-up can be hard on family life. There may also be financial pressures until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk in the short-term.

For more information see our step-by-step guide to starting a business.