July 18th, 2014
There’s a rising trend for new graduates to start up their own businesses straight out of university, instead of getting a few years experience working for someone else first. Many budding entrepreneurs start off by working from the kitchen table, but it’s likely that before long they will need serviced offices to let, while virtual offices can also help them to grow.
One recent survey showed that the number of recent graduates registering as freelancers or owners of “micro-businesses” had almost doubled in just a year. So what are the main reasons why so many young people are setting up on their own at the start of their careers?
Drivers for Graduate Startups
Remember the old saying that necessity is the mother of invention? The recession saw a lack of jobs for new graduates, as the traditional “milk round”, where companies tour universities seeking recruits, was heavily scaled back. With the recovery, the situation is now much improved, but competition for graduate places is still fierce. Many new graduates who can’t find a job right away have been deciding to look at alternatives and create a niche for themselves.
Many are keen to earn money right away partly because of the need to pay off loans. Most people finish university in debt, including short-term overdrafts and credit card bills as well as the inevitable student loans. This means there is a strong incentive to pay it all off and start saving for the future.
Yet another reason why more graduates are setting up businesses is that they feel more equipped to do so. A growing number of university courses now include some business or marketing element, helping to open the eyes of students to entrepreneurial possibilities. Creative people who have found a sideline suddenly realise they could turn it into a career – whether their talent lies in creating outfits for friends, organising parties and events or building websites.
Working for yourself is exciting and rewarding because you can tailor your business around your own abilities, finding markets in the areas which interest you. The development of modern technology also makes it easier than ever to set up and run a new venture, with the internet giving access to a wide range of resources. Most graduates of today are highly technologically adept, even if they haven’t been studying IT. All this means it can prove much cheaper and more straightforward to start out on your own than it was in the past.
Challenges for Graduate Startups
Even though now is a good time to start up a business, budding entrepreneurs still have to jump a number of hurdles, and this can prove harder for a new graduate with no proven track record. One problem for many at the start is a lack of capital, which can make it difficult to take on an office rental, as well as dealing with other upfront costs such as buying stock and setting up good communications and technology infrastructure.
This is all hard to do without money upfront, particularly when you have student debts and no other credit record, meaning you can’t secure loans or take on leased office space on a long-term basis. A lack of capital can also make it difficult to afford vital support mechanisms such as IT helpdesks and an office receptionist.
Many graduates taking the self-employed route are also likely to have to change tack along the way before finding a business that works. But that trying and failing is actually an essential part of their “training” – and it is the lessons learned there that will result in eventual success.
As they go through these early days, graduates need to present the right image in order to be taken seriously. However, this isn’t easy when they lack even a business landline, let alone swanky offices to rent at a good address. They might also be let down by the inability to provide all the other facilities which customers expect, from parking to serviced meeting rooms.
Yet another challenge is how to develop expertise without opportunities for networking in the office. Swapping opinions and information online is great, but there is no substitute for speaking to other people face to face and building relationships in your local area.
Basepoint – A Great Starting Point for Graduate Startups
Fortunately, help is at hand for graduates starting out in business. If you are working from home but want a business address, one option is virtual serviced offices from Basepoint. This will give you great features including a professional business address for mail, free use of the breakout area at your local centre to meet clients, and invitations to all networking events. Alternatively, you could take on serviced offices to let from Basepoint, with no need to pay out large sums upfront. Flexible rolling contracts mean you can move in and out quickly, and you will benefit from fast internet with on-site IT support, digital phones configured for your business, a reception desk to field calls and serviced meeting rooms.
Get in touch with Basepoint now to find out more about our serviced offices to let in locations including Camberley, Tilbury, Weymouth and Havant.
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