Ten reasons to start your own business

For aspiring entrepreneurs, taking the plunge into becoming your own boss can be exciting and challenging.

In employed work, you can enjoy security, a stable income, work benefits, and a community of colleagues.

But you may also experience a lack of growth, creative freedom, and inflexible work schedules.

Between 2020 and 2021, over 364,000 businesses were started in the UK – many launched by individuals deciding to strike out and take the first steps towards building successful businesses themselves.

Read our guide on essential start-up tips for young entrepreneurs.

Here are ten reasons which may inspire you to do the same and become your own boss.

10 reasons to become your own boss

1. You can work more flexibly

Employed work may require you to work within specific time requirements.

Being your own boss of your start-up business can give you more control over when and how long you work, potentially creating a better work-life balance.

Carefully balancing the hours you work on your start-up can help to optimise productivity and output, build strong relationships with employees and suppliers, and help you meet personal commitments.

2. Say goodbye to the daily commute

With many people continuing to work from home since the pandemic, many workers’ commute time has reduced compared to the average commuting length in the UK in 2021, which was an average of 27 minutes a day.

Over time, regular commutes to the workplace can add up to plenty of lost time.

As your own boss, you can decide where you work – you may prefer to work from home, or you may want to use coworking spaces or a public space such as a library or coffee shop.

By working from home or utilising a local service, you could spend less time commuting, less money on travel costs, and you could invest that saved money and time into your business while supporting local services.

Read our guide on creating a home working environment.

3. You can do work you are passionate about

For those working in traditional jobs that don’t align with their passions or values, becoming your own boss could be a path towards a more fulfilling career.

Many businesses are started by a founder passionate about an idea, industry, or type of business.

Turning this passion into a start-up may lead to more fulfilled working, as you’ll be running a business that focuses on activities and interests that appeal to you.

4. A side hustle can earn additional income

For some, building a start-up is an opportunity to escape traditional employment and prioritise their passions.

For others, starting up a new business can be a way to earn additional income to supplement what they receive from regular employment.

When a start-up is operated alongside traditional employment, it’s commonly referred to as a ‘side hustle’.

This additional income could finance the new start-up, help it grow or help save for the future, and create a personal financial safety net.

It can also be an excellent way to check that your start-up idea is viable, and you enjoy running your own business before entirely cutting ties with your existing employer.

5. There is a lot of support available

Compared to previous years, more support options are now available to those looking to start their own business in the UK, from financial help to mentoring.

Local Enterprise Partnership Growth Hubs across the UK offer support and advice to entrepreneurs, and start-up owners have access to several region-specific financial and support services provided by the UK government.

Start-Up Loans is a government-backed loan scheme for UK start-ups, providing up to £25,000 to help small UK businesses grow and thrive.

A wide range of networks and groups – both online and in-person – cover a range of industries and types of founders.

Many offer 1-2-1 or community-based support, encouragement, and advice to get started and overcome start-up hurdles.

6. You want to challenge yourself

Starting your own business can be challenging in several ways, including self-management of issues such as time, focus, resources, and effort.

As your own boss, you are responsible for your time, tasks, finances, and productivity, for example.

Besides being an exciting and challenging prospect, starting your own business and being your own boss can be a way to break out of boring routines that you feel may not be helping you achieve anything.

For your start-up to succeed, challenging yourself could be considered a necessity, but it can allow you to take ownership of how you spend your time, money, and effort.

Learn how to overcome common start-up challenges.

7. Technology is on your side

To start-up business owners, technology is an incredibly valuable asset.

It can help you network, access support, raise funds, answer questions, handle your bookkeeping, connect with customers, and help promote your business.

Automation technologies and lower-cost business tools have helped democratise start-ups.

Technology – from online stores to accounting software – can be relatively inexpensive and even free for start-ups, reducing the amount you need to get started.

Discover our list of helpful business software for small businesses.

8. You can make money

Besides earning additional income, becoming your own boss and starting your own business could open the door to greater earning potential.

In traditional employment, you may have been only able to advance so far in your career, and the amount you earn would be limited, even if you reached the top of the career ladder.

As a self-employed individual, this may not be the case.

Through hard work, planning, and dedication you could reap the financial rewards as your business scales.

This can result in higher pay, a share in profits in the shape of dividends, and capital growth as your business becomes more valuable.

You may be able to sell a successful business to someone else in the future, allowing you to generate more money from your work.

9. Tax relief could help you get started

Sole traders and the self-employed only pay tax on their profits rather than their total income.

Being self-employed, you can reduce the amount of profit and tax you pay by recording legitimate business expenses and offsetting these against profit.

Typical business expense claims include office equipment, supplies, manufacturing equipment, travel, electricity and some property costs (even if you work from home).

Learn more about expense claims for the self-employed at the government website.

10. You can use all your skills

As the captain of your start-up journey, you decide your start-up’s direction.

Self-employment can allow you to explore your skills and expertise in a fulfilling, financially-enhancing way.

Being your own boss means you can also avoid the tasks you don’t enjoy as much or have difficulty with, hiring those with specific skills to take on particular work while strengthening your skillset.

On the other hand, starting a new business can open the door to learning and using a range of skills you might not have had the chance to use as an employee.

Skills such as marketing, promotion, sales, and management can all play a role, and starting a business can be a great way to grow your overall skillset.

Read our first-time employer’s guide to hiring staff.

How to get started with your business

Before jumping aboard your start-up, several practical considerations should be considered to increase your chances of business success.

• conduct market research to identify any gaps you could fill
• define what makes your start-up a good idea
• choose a company name
• outline your start-up company structure
• create a business plan
• register your business with HMRC
• seek support from other small business owners to gain insight and advice
• analyse your finances to see if you can afford to start your business.

To help your business start or grow, you can apply for funding from Start Up Loans, where you can borrow up to £25,000.