February 22, 2012

Having an idea for a new business

If you are thinking of starting up your own business it’s not enough to have a really good business idea, whether this is for products to sell or for services that can be delivered. Such a business idea is essential and a good beginning, but an idea is not enough to build a successful future for your business.

It may be that you have particular skills in making something- say, furniture or widgets, and after making several for friends and family you think you have evidence that there is a market for these products. But have you really done any work on who else is making these products and at what price ? Or worked out costs if you are no longer using cheap offcuts ? Or what would happen if you had a large order to be made quickly and had no one who could make them? Is there actually a profit to be made which will pay you a decent living wage without you having to work seven days a week?

Similarly starting off offering services such as cleaning or animal care may mean that consideration needs to be made at the outset about employing people even part time and knowing about employment law and buying tax and payroll services. As well as considering the actual thorny problems of quality product manufacture or operating a service business – even as a very small business operator – it is essential that advice is sought on such areas of marketing, business start-up finance as well as getting realistic feedback on your business idea.