Starting a new business

Starting your new business can seem a daunting prospect. Most people want to start a business because they can do it better than other people they have seen. They want to escape the day to day hassles of travelling into work or simply want to work for themselves rather than someone else.

Working for yourself

If you have not worked for yourself before there is of course a risk attached to this. You'll have to motivate yourself every day to focus on your goals and have to work extremely long hours to at least begin with but for a long time afterwards.

If you decide to work from home then you'll have to juggle warm sunny days, home responsibilities and requests from partners to do jobs "because you are at home" as well as other distractions like television!

But hey, I am not here to judge, if you have made the decision to go it alone, here are some things to think about.

Starting out with your business idea

Do you have an idea for a business venture? Well at least you are halfway there. Do you have a business plan yet? Well you need one. A business plan will help you map out how you believe your business will progress -- and why.

You may have aspirations that you'll make thousands in the short term, but remember, there are people out there already doing what you want to do. You'll have to be better than your competitors and steal customers from them. How will you do that? Start your business plan ASAP - you'll then see exactly what you need to do

Focus on one idea at a time

OK so you're ready to start. But really focus on one niche idea at a time. Don't waver at all because you'll need to build up your niche first, get customers to believe in your products and services first, then you can sell them something else.

Whether your new business is to be on the internet from home or in the high street - your customers need to understand that you are providing one type of product or service. Spread yourself over too much and customers will become confused over what you are offering and might not try you out.

Ways to start your business

If you think you are ready to jump ship think again.

Could you actually start your business as a part time hobby whilst you are still in full time employment? If so (and it doesn't overtake what you are currently being paid for) then this will be an excellent way to "test the water".

Some people believe they can be a full time web designer, but this area is so competitive not many survive. The ones that do generally slowly build up a loyal customer based from word of mouth and then have enough business to go full time.

The best ones concentrate on their local areas and then build out from there. If you can start part time in the evenings your cash flow will greatly benefit.

Research your competition

Learning from others is something we all do - from childhood to adulthood. So why not in business? Who are your likely new competitors? Why do you think that is? What do they do well? The best analysis you can undertake is something called a SWOT.

This will show you your own strengths and weaknesses against your competitors. Not only will you see what they do better than you but you'll also be able to use this information in your marketing communications messages.

Don't be afraid to use what competitors are doing well (and you can do better) but find out what they don't do well (or don't do at all) that your prospective customers want so you can build those into your offer.

Final thoughts

Hundreds of thousands of new businesses start each year. Unfortunately a high percentage fail before the first year.

You really can avoid failure by putting a business plan together. You may find out that you need to make 4x as many sales as you thought to reach your profit objectives. Then you may need a new strategy. Going into business without a business plan increases your chances of failure dramatically.

Sketch out your business plan and financial projections and also get friends and family to look at this to provide feedback for you.

Best of luck with your business

Peter Hale
Owner, Teneric Business Plans Ltd
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