Business Start-up

Careers

Starting a business can be an enticing prospect, especially in times where flexibility and autonomy are valued. However, venturing into self-employment comes with its own set of challenges and rewards. While it offers independence and the chance to explore your entrepreneurial spirit, it equally demands unwavering commitment and resilience.

For those leaving the armed forces, the transition to self-employment can be an exciting avenue. Your military training might equip you with valuable skills like leadership, discipline, adaptability, and problem-solving, all of which are crucial in running a successful business. Yet, starting a business requires careful planning, market research, financial stability, and a clear vision. It's essential to consider mentorship programs, business courses, or support networks tailored for veterans, as they can provide guidance and insights specific to transitioning from a military career to entrepreneurship. Recognizing your transferable skills and seeking resources that assist in translating them into the business realm can significantly aid in this transition.

Types of business

When contemplating setting up your own business, it's essential to comprehend the various structures available in the UK's business landscape. Here's an overview of the primary business types within the SME category, which includes small and medium-sized enterprises:

1. Sole Trader: A straightforward business structure where a single individual owns and manages the business. As a sole trader, you're personally responsible for the enterprise's liabilities.
2. Partnership: Involves two or more individuals who share responsibilities, profits, and liabilities. Partnerships can be general (all partners share equal responsibility) or limited (some partners have limited liability). It's advisable to establish a formal partnership agreement to clearly define each partner’s contributions, responsibilities, and share of profits to prevent conflicts.
3. Limited Liability Partnership (LLP): Similar to a partnership, but it provides limited liability protection to its partners. This structure separates personal assets from business liabilities.
4. Limited Company: This business type operates as a separate legal entity. Shareholders' personal assets are generally protected, and the company is responsible for its debts and obligations. Operating a limited company involves additional administrative duties, such as filing annual accounts and tax returns, which require diligent record-keeping and management.

Understanding the nuances of each business structure is crucial when deciding the best fit for your venture. Each comes with distinct legal, financial, and operational implications, so it's important to choose wisely based on your business goals and preferences.

Click here for useful explanations of how these types of business differ – and the advantages and disadvantages of each.

NEW START?

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Franchising

In addition to the business formats listed above, a franchise is a common way of starting a business these days. It is basically one person copying another’s proven business and receiving support from them in exchange for an up-front payment (the franchise fee) and ongoing fees (royalties). It is an option for those who have some money to invest and who want the independence of self-employment coupled with the support of the franchisor.

To find out more, take a look at our full franchising feature.

Have you got what it takes?

Starting a business is a commendable endeavour, but it's essential to approach it with due preparation. If you're considering launching your own venture after leaving the armed forces, gaining industry experience by working in a similar field can be immensely beneficial, providing insights into the market and operational nuances. However, in fast-evolving sectors, leveraging accelerated learning programs, boot camps, or industry-specific workshops can also equip you with necessary insights and skills swiftly. This is particularly useful if your business idea is innovative and time-sensitive.

Start by keeping things simple. Maintain a clear separation between personal and business matters, maintain accurate records, and be able to present them when necessary. These foundational steps are pivotal in laying a solid groundwork for your entrepreneurial journey after leaving the military.

Before you start, consider the following factors …

• Purpose-driven Entrepreneurship: Reflect on your motivation behind starting a business and how your military skills can be transferred. Utilize digital networks and online communities to connect with industry peers, learn from their successes and failures, and refine your business concepts. Mentorship, whether virtual or in-person, can provide valuable insights and guidance as you navigate your entrepreneurial journey.

• Leverage Familiarity: Operating in a field you are familiar with or have experience in can provide a sense of security and understanding when embarking on a new entrepreneurial venture.

• Starting from Scratch vs. Existing Options: Starting a business from scratch provides a fresh start but might entail uncertainty about the idea's viability. Acquiring an existing business or opting for a franchise might offer a more structured approach but can be costly.

• Learning from Others: Learn from the successes and failures of other businesses within your field of interest. Utilize your network, seek feedback from friends and family, and even consider mentorship opportunities to refine your business concepts.

• Target Audience and Communication: Establishing a clear target audience and effective communication channels is critical. When transitioning from the military, focus on adapting your communication style to resonate with civilian audiences.

• Initial Business Efforts: Acknowledge that initiating a business often requires a substantial amount of time, especially in the first year, where a significant portion may be unpaid.

It’s very important to have a clear target audience and a regular mechanism in place to communicate with them. Many people who become self-employed spend around 50% of their time trying to generate business in the first year. That’s 50% of your time unpaid! But, as you start to get regular work, the whole process becomes much easier.

Other things to think about

Once you have decided that starting your own business is the way ahead for you, you should spend some time researching the following areas. 

• Financial Management: Prioritize understanding financial aspects such as income tax, national insurance, cash flow management, and tax obligations. In 2025, veterans transitioning to entrepreneurship might benefit from not only seeking guidance on specialized financial programs but also utilizing digital financial tools that simplify these processes. Many of these tools are designed to help small business owners keep accurate records, forecast financial health, and manage expenses efficiently.
• Health and Safety Compliance: Investigate health and safety regulations pertinent to your business sector. Certain industries, such as manufacturing or food services, might have specific requirements. Utilise digital compliance tools that help businesses stay updated on regulatory changes and manage compliance more effectively.
• Environmental Responsibility: For eco-conscious ventures, it’s vital to consider the proper disposal of business waste and any hazardous materials. Additionally, look into sustainability certifications and practices that can enhance your business's environmental responsibility and appeal to a growing segment of eco-aware consumers.
• Employee Management: Understand employment laws, including recruitment, employee rights, dismissals, and, importantly, the management of remote workers. Familiarize yourself with the tools and practices that aid in the effective management of a remote or hybrid workforce, as well as understanding employer liability insurance requirements.
• Premises and Location: When considering business locations, weigh the advantages of operating from home against acquiring separate premises. Evaluate the need for physical space based on the nature of your business, potential customer base, and overhead costs.
• Intellectual Property and Licensing: Protect intellectual property, including company names, logos, and proprietary inventions. In the digital age, also ensure online brand protection and manage digital assets. Identify if your business activities require specific licensing from relevant regulatory authorities and consider digital licenses and permissions where applicable.

TOP TIPS

Check out the expert tips at MoneyMagpie to find out how you could make running your own business a breeze

Are you a ‘people person’?

Starting your own business can sometimes mean working alone. Consider whether you enjoy plenty of social interaction or prefer more solitary work. If you thrive on being around people, think about choosing a business that involves regular client meetings or teamwork. It might also be helpful to connect with fellow entrepreneurs or industry groups for support and advice. Make sure the level of social interaction in your chosen field matches your comfort zone before diving into self-employment.

Is it for you?

The personal attributes of someone well suited to self-employment include:

• drive and determination
• self-discipline
• tenacity
• independence
• self-motivation
• a strong commitment to delivering projects on time, to specification and to budget
• personal budgeting and organisational skills.

Additionally, digital literacy and the ability to adapt to rapid technological changes are increasingly important in managing a successful business today

Remember, there are tax bills to pay, so you can’t spend all your income – and you need to keep your paperwork in order for HMRC inspections. Utilise modern financial management software to streamline your accounting, ensure compliance, and keep thorough records, enhancing efficiency and accuracy.

Be aware of the obstacles

Self-employment comes with its fair share of challenges. Prospective clients often seek evidence of your experience or a portfolio of your work, which can pose a hurdle in gaining their trust. The upfront costs of specialized equipment might seem daunting, especially considering that established companies usually have preferred suppliers. Getting your foot in the door might be challenging initially. However, persistence and initiative can pay dividends, gradually overcoming these obstacles as you persist in your endeavours.

Help and guidance

There is a wealth of assistance available from various sources, including government support from departments like the Department for Business, Energy & Industrial Strategy (BEIS), offering resources and programs to aid new businesses through digital platforms. Regional authorities provide localized support and resources for startups, often accessible online. Financial institutions continue to offer resources and guidance, increasingly through digital banking services. Professional advisers across various domains are more accessible than ever through online consultations and services.

There is a wealth of assistance available from various sources, including:

• Government support: Such as the Department for Business, Energy & Industrial Strategy (BEIS), offering resources and programs to aid new businesses.
• Regional authorities: Providing localized support and resources for startups in specific areas.
• Financial institutions: While banks may offer less support compared to the past, they still provide financial resources and guidance for new businesses.
• Professional advisers: Including solicitors, accountants, insurance and pensions advisers, marketing experts, specialist trainers, and IT experts, offering specialized advice across various domains.

For those either currently serving or planning to leave the Armed Forces, there are dedicated organizations that cater to their specific needs:

• The Royal British Legion (RBL): Offering support, advice, and resources tailored for Service leavers.
• X-Forces Enterprise (XFE): Providing specialized assistance and entrepreneurial support for ex-military personnel.

Additionally, new initiatives and digital platforms have been introduced to specifically address the unique challenges faced by veterans transitioning to entrepreneurship, providing more personalized support and resources.

Networking also remains a vital aspect, providing opportunities to connect with mentors, fellow entrepreneurs, and business professionals, which can offer invaluable insights and support in the civilian business landscape.

Earning highs … and lows

In the early years you might earn less than you would expect to achieve in full-time employment. But, in the longer term, if you’re successful, your earnings are entirely dependent on the work you put in. That’s hugely motivating. It’s like performance-related pay – with all the rewards and none of the bureaucracy.

On the downside, payment dates may be erratic. Are you financially robust enough to deal with slow payment periods? If you need a regular pay cheque and/or cannot budget effectively, you need to give serious thought to whether this is the right path for you.

Find out more on the Quest website

• Search ‘Steve Bulleyment’ for information straight from the horse’s mouth about what it’s really like to make the leap to self-employment – and stay there. Use the search function here to read what our regular self-employment contributor Steve has to say.
• Search ‘Clive Lewis’ – again using the search function here – to access a series of features, under the title ‘Preparing for business’, which Clive has produced in conjunction with XFE, highlighting all you need to know about starting and running your own business.