Research

Research is vital now that you are determined to go for it. Once you have decided on your business idea you can look into its feasibility.

Of course, one person’s research will differ from another’s. Each type of business has different needs. Even the same type will vary according to the spin you want to put on it. You need a clear picture of what your ultimate aim for your business is. However, be prepared to be flexible.

Make a list of the questions you need answers to in order to investigate your business idea thoroughly. As you discover answers you will find more questions. Keep adding them to your list.
Some questions you will pose will be:

1. Are you working from home or will you need specific business premises?

2. How will you find clients?

3. Which will be your optimum working hours? Get out of the 9 – 5 mentality. Weekends and/or evenings may be the best times.

4. How are you going to manage your time. This is especially important if you are going to be working alone.

5. Market your business at all times.

6. If you are going to use a trading name then check to see if it is not being used by another business.

7. Will you need any licences to run your business?

8. Do you need any qualifications granted by an industry or professional body?

9. Can you continue your paid employment whilst setting up your new business? Moonlighting may well be the way to begin.

Define your market

Choose a specialised niche which you serve well and conduct your research in this area. Don’t try to compete with large companies – they can undercut your prices without flinching.

Law

Look into the laws as they apply in your country and in your industry. Research all the legal aspects and then make sure that you comply.

Financing your business

This varies wildly due to the type and size of the projected ideas.If you are setting up an engineering company, then premises, equipment and staff will take up a chunk of finance before you start.

If you are going to run a consultancy from a small office in your home there won’t be much to pay for in the way of set up.

So make a list of what you will need to set up your work place. This is where it is necessary to research your particular business idea.

Possible expenses

Market Research

Whatever your business idea, collecting information on the likely outcomes is one of the first things you should do. Market Research will help show whether you have a possible success or failure on your hands. It will help to point you in the right direction when building a composite picture of your target customer.

The competition

Who are they? How do they work? How well regarded are they?Just because there is competition does not mean that there is no room for you.

Don’t try to compete by being cheaper. Rather your research should help you to see how you can produce goods or services which are superior. How will you differentiate yourself from the competition? Who are their customers? Why do these people go to your competitors? Find out as much as you can about their prices. Can you uncover customer opinions? In fact make it your business to know everything about your competition. Your costs should include every last little item included. Don’t forget a percentage of your overheads and running costs – and do include your time as well as your staff’s time.

If you are going to sell products are you going to be able to make or buy enough to satisfy demand? How much is ‘enough’? Have you worked out how much you can expect to sell to begin with? Do you know how many customers are likely to come to you?

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