Company Formation; Have You Got What It Takes?

A few years ago and the formula for career success seemed clear – work hard, go to university, get a good job and work your way up the ladder. However, the recession has forced many people to reassess this theory and reconsider their options.
The concept of a ‘job for life’ is outdated and as a result many people aren’t prepared to put their future in the hands of somebody else. As a result the number of people considering company formation has increased. But have they got what it takes? In this series of posts, we consider the range of skills you will need if you are going to turn your business concept into a reality.
Can you commit? If so, are you ready?
For many people considering company formation, the benefits of flexible working hours and more money far outweigh the security offered by a monthly salary. However, while the advantages of running your own company can be huge, before you take the plunge it is vital you understand the responsibility of what you are undertaking.
For example, are you prepared to work constantly through the start up phase of your company, for limited return? Before you say yes, consider the thoughts of Ben Matthison, Director of lifestyle brand Wombat – “Starting my own company was the most difficult thing I have ever done. I was working all the hours god sends and initially it was for minimal return.”
So, before making the ultimate commitment, consider the sacrifices you will have to make and then really think whether it is the right time in your life.
Are you passionate enough?
For many people, their motivation to keep working hard at their job, is the knowledge that they will get paid that month, however, forming your own company does not always offer the same guarantee. Working for yourself means that your success is completely down to you; there are no enforced deadlines, no progress meetings or monthly targets to meet. 

You must be completely motivated and passionate to run your own business during the good times, but in the bad time the motivation needed is on another level. Matthison agrees; “ We had so many set backs in the first year; our financial backer pulled out, the premises we wanted got flooded and a similar company entered the market before us. You have to be incredibly self motivated and passionate about your company to get through times like that.”