Your Proposition

You've come up with a great idea. Now what?

Energy, dedication, knowledge, ability, and the quality of your idea are essential prerequisites when it comes to starting your own business.

It doesn't have to be an original or revolutionary idea - just one you can offer which people will want to buy. Businesses that are based on something which is entirely new require the most careful thought and thorough research. They may also take slightly longer to get off the ground because, initially, the market will be unfamiliar with your product or service.

If you're worried about starting from scratch, you may wish to buy a business that's already up and running, or buy into a franchise. Another option is to study an existing business, devise a way of improving its methods and then go into competition with it.

If you want to reduce the risks, stick with what you know and build on what you can find out.

Once you've got your idea, then what exactly do you do with this business dream of yours? How do you give it life and make it grow?

More information on all aspects of running your own business can be found in the Starting Your Business pack and Business Plan Software CD ROM.

Can you see a market?

As well as defining your idea you have to define a market for it. Effective marketing is the key to the success of any business.

In theory and in practice, a well-run business based on a marketable idea should succeed. Market research will help you determine if your idea is marketable.

A market research questionnaire will help you answer basic questions such as: Is there a demand for it? Who are your competitors? What price do they put on their products? What are the buying patterns of your potential customers? Where do they live? And so on. You can either prepare your own questionnaire, or a commission a market research specialist to carry out a survey for you.

You can also get valuable - and free - research material from libraries, trade associations and trade publications. Exhibitions and conferences will show you what your competitors are offering, what messages they are conveying and how their prices compare to yours.

And of course, the Yellow Pages and Thomsons Directory will list the competitors in your area.

Your research will not only involve questions, answers, facts and figures. It can also, in the case of a retail business for example, include elements as basic as walking around, observing pedestrian patterns and generally getting a feel for the locale.

If you've properly researched the market for your product or service and, in your assessment, have come up with nothing to hinder its entry into the marketplace, then you're ready to move on to the next stages.

More information on all aspects of running your own business can be found in the Starting Your Business pack and Business Plan Software CD ROM.

Can you see a profit?

Some markets are more price sensitive than others. It goes without saying that to maintain reasonable profit margins, you must charge a reasonable price for your product or service. Take into consideration your production costs (if applicable), running costs, overheads and an acceptable margin of profit. If the figure you arrive at is a figure the market can bear, then you're in business.

What are your goals?

An important part of the process of starting a business is to ask yourself exactly what it is you hope to achieve. Is it purely monetary gain? More flexibility in your working hours? Enhanced status? Doing what you want to do for a change, without taking orders from others? Your reason for being in business will dictate the direction and define your own measure of success.

Setting up and running your own business can be a fulfilling and rewarding experience. It can also be very hard work, with long hours, a lot of stress and many challenges along the way, especially in the first two or three years when you're trying to establish your business, balance your cash flow and promote your name. But you can be sure that the more you put in, the more you are likely to get out.

If your idea is sound, it has a market, and you can see a profit, then the next step is to write a business plan. You don't have to do this alone. We have produced a Business Plan Software CD ROM which takes you through it step by step.