5 Steps to Starting a Business after a Career Break

Are you ready to come back to work after a career break? This can be an exciting but daunting transition. Trends and job opportunities may have changed, old colleagues may have left, and new ones joined, so it’s understandable if you’re not quite sure how to get back into old habits.

Have you considered starting a business instead? You’d be your own boss, in charge of your own schedule, and realising your dreams and aspirations.

The UK’s best company formation expert, 1st Formations, is here to guide you through the transition in five steps.

1. Find a business idea

The first thing you’ll need to do after a career break is define the type of business you’d like to start. Do you have a great idea in mind already, or do you need some inspiration?

Depending on the length of your career break, the business landscape may have changed drastically. So, be sure to catch up on any news and trends you might have missed to see if your original idea is still feasible or find great opportunities if you’re yet to finalise your business venture.

If you’re struggling to narrow down your options, one way to get around this is to identify a problem you’re experiencing in your everyday life. The answer to that problem is usually a great business idea.

You might come up with a great new app, product, or service. Or maybe you want to focus on a particular cause close to your heart, like sustainability or animal welfare.

Whichever strategy you choose, remember to take your time and find a business you’re passionate about. This will help keep you motivated and focused.

2. Assess your skills

It’s likely that you gained new skills during your career break. Perhaps you’re a little rusty on skills you used to have in your previous job. It’s essential to assess and update your knowledge and experience after a career break to ensure you’re well equipped to start your ideal business.

This might involve simple research or speaking to old colleagues about industry updates. Or you might want to sign up to relevant courses or seminars to help get you back on track and ready to become a business owner.

Take the time to identify your strengths and weaknesses after a career break and plug any skills gaps you might have that will set you up for success.

3. Write a business plan

This step is crucial for every aspiring entrepreneur. Failing to write a business plan is like going somewhere you’ve never been before without a map or GPS; you have a vague idea of where you’re headed but no clue of how or when (or if) you’ll get there.

You should take the time to conduct market research, gain consumer insights, calculate how much funding you’ll need to get the business off the ground, and understand how long it will last before turning a profit.

Again, take your time to write a comprehensive business plan. Think about the challenges you might face along the way and how you’ll overcome them. This will make it much easier to transition back into a business mindset after a career break.

4. Start networking

If you’re feeling a little out of touch after a career break, don’t worry; it’s natural and understandable. Fortunately, networking is a great way to restore your confidence.

Unsure where to start? Try reaching out to former colleagues. They might be in a field relevant to your business idea or introduce you to someone who is.

They’d be able to give you valuable tips and advice and support you in your transition to becoming a business owner.

It's also a good idea to attend local networking events or start conversations on social media.

Remember, when you’re networking, the priority isn’t necessarily to pitch your business to others (unless a suitable opportunity arises). There is plenty of value to gain simply from engaging with other entrepreneurs.

5. Try a side hustle

Consider trialling your business idea as a side hustle before focusing on it full-time. This way, you could go back to your previous job or take another for a steady income and slowly transition into starting a business. You might find this a more comfortable and less risky way to return from a career break.

Side hustles are flexible, allowing you to work to your own schedule and fit it around your main job. They’re also an excellent way to develop your skills, build professional connections, and gain valuable entrepreneurial experience with the security of a full-time job.

However, side hustles require time commitment. Be careful not to neglect your primary work responsibilities or let it impact your wellbeing.

Lastly, be mindful of the legal considerations when running a side hustle. Once you start earning over £1,000 a year, you’ll need to report it to HMRC and pay tax on your additional income.

At this point, it could be a sign that things are going well and it’s a great time to officially start a business. If that’s the case, you have a business plan ready to go.

Ready to take the next step?

Transitioning from a career break to becoming a business owner is a huge change, but you don’t have to do it alone. Ask friends and family for support and speak to professionals like the experts at 1st Formations.

With over 10 years of experience incorporating businesses, 1st Formations is the UK’s top-rated company formation agent. Visit their website or speak to their team on 020 3897 2233 about starting and running a company.