Starting in Business
You need an idea
Ideas come from many sources and the demand is always there for new products
and services that meet people’s needs more quickly, with better quality and at less cost. Many a successful business has been started by someone who couldn’t
find a particular product or service they wanted.
Other people who bought poor quality goods or received poor service decided they could do better. When you have your idea, look at it in as many ways as possible and spend time at it. Are there other possibilities with it?
Finally when you have your idea together you should be able to describe it as if you were on Pat Kenny or Ryan Tubridy.
Finding out all you can
Having a good idea is only the start and bringing that idea to commercial
reality is a major challenge. You don’t know how good your idea is until you investigate it thoroughly. Good business people are risk takers, but they are measured risk takers. The more research you do the lower the risk will be.
Carry out market
research to see if there is a market for your product or
service in a practical way by finding out who you should talk to and talking
to them e.g. if it’s a tourism product, go and talk to the local tourist office, check out your own local area on the Internet.
Why do people visit the area? Is it for walking? Is it for fishing? Where do they come from? When do they come?
Before you invest money in your idea you need to answer these questions
- What is your product?
- Who will buy your product?
- What price will your customers pay?
- How many can you make / supply?
- What does each unit of product cost you to make?
- How much investment do you need to get started?
- HAVE YOU A VIABLE BUSINESS?
Fail to plan, plan to fail
The harsh reality is that 50% of new businesses
fail within the first five years. Why? Because of the lack of planning. They
do not plan to fail, but they certainly fail to plan.
The thought of doing
a business plan sounds like hard work but if you are serious about your
new or existing business then you owe it to your business to have a plan.
You may not understand what exactly a business plan is but if you can answer
these questions on your own business then you are well on your way.
When you think about your business proposition, do you know -
- Where you want to go?
- Where you are now?
- How do you get there?
- The business plan places a lot of focus on the HOW?.
You don’t need a qualification to write a business plan. Yes, you may need some help and you will need to do a lot of thinking but it is your plan. The business plan is your road map and serves as a guide to get you to where you want to get to in the future. It means that any investments and decisions you make on the way will be in the right direction. It will help you to prioritise and set realistic objectives. The more you can break it down into simple but meaningful tasks with dates and goals the better it will be for you, such as:
- Carry out market research by talking to local tourist office, and others in business.
- Attend Business Startup Course in local County Enterprise Board
- Complete Business Plan with help of spouse and also professional help.
The business plan will help you communicate and explain your idea. This is critical if you are looking for finance from the bank, and even your family’s support. It also means that you can continue to improve your plan as you will get constructive criticism and good comments from people on the way.
When your business plan is complete it will include a Profit and Loss and Cash Flow. Many people like to switch off when it comes to the figures, and would prefer to make them up or pay someone else to do it for them. You can get help but don’t run from the responsibility.