BIG decision!!  Before you start planning a business venture you need to consider a number of things.  Not least is a critical analysis of your personal attributes, experience, knowledge and skills that will make your business successful.  Knowing yourself can help you develop a business plan for a successful and sustainable business.

Have I got what it takes to be an Entrepreneur?
Having drive, ambition and desire are all fantastic qualities to undertake a business idea or proposition and the ‘business idea‘ is only the starting point.  Success in business is built on a number of factors but making sure you aren’t a liability to own start-up goes without saying.

Experience, knowledge and skill in your area of business will be crucial when running your enterprise.  It’s vitally important you understand where any gaps might exist and take the necessary steps to mitigate the risks by filling them.  Detailed research and additional training and support might be needed to ensure any shortcomings are fully addressed.

This doesn’t mean to say you shouldn’t entertain a commercial idea where you have no business experience … but the chances of being a successful entrepreneur are very slim unless you take time to gain insight and knowledge in the particular business area you are considering.  Wanting to be a chef and opening a restaurant isn’t a good idea if you can’t even boil an egg!

If you feel sure that running your own business is the right thing for you, there are certain personal qualities which will significantly enhance the potential for a successful outcome.  You don’t need them all in abundance, as running a business will develop you personally by its very nature, but it would be desirable to have the following to some degree:

• Realism – this is the most crucial quality.  This is not about curbing ambition or enthusiasm but ensuring you understand your abilities to run a business and, indeed, the potential for that business.  Being unrealistic in your expectations can nose dive your proposition before it gets off the ground and the consequences of not keeping your feet firmly planted can be fatal for your business.
• Drive and determination – anybody who says starting a business is easy has probably never done it! You have to be prepared to push through any number of barriers, setbacks and disappointments … giving up at the first sign of a problem isn’t going to cut it.
• Confidence and belief – having belief in yourself will transfer to suppliers, customers and stakeholders (funders for example) alike. If you exude confidence you have a far better chance of winning that order, getting that loan, opening supplier credit etc.  As the old saying goes “if you don’t believe in yourself, how can you expect others to?”  Never was it truer than when starting and running a business.
• Passionate – you need to be a real evangelist for your business – your belief will pull others to you.
• Resourcefulness – as previously stated, there is nothing easy about starting and running a business.  You will constantly have to adapt your thinking and get creative on a daily basis to overcome obstacles.
• Energy and enthusiasm – unlike working for somebody else, running a business can often require long hours and a dedication to the cause.  You have to be prepared to put in the hours and drive your business forward.
• Awareness and vision – a successful entrepreneur will often hold common traits and one of them is the ability of the owner/founder to understand their market environment.  They have a clear vision of what they want the business to be and become in the future.  This doesn’t necessarily mean you want to take over the world (or maybe you do) but does mean you have goals and a level of clarity around how you will achieve them.
• Communication – This is about talking AND listening.  From telling people about your business to dealing with employees, amongst many other things, the ability to communicate effectively is vital for your business.  The thing here is people; and you need to get your message across clearly and understand the information coming the other way.  Added to this is also the ability to take on board advice, criticism and feedback; process it effectively and use it to your advantage.
• Organisation and self discipline – this is an easy one to describe but often the hardest to practice.  Being an entrepreneur means you are often spinning numerous plates and to ensure you don’t drop and break any is a real art.  You will deal with customers, suppliers, banks, accountants and many more (possibly employees as well) who will all want a piece of you to varying degrees.  In and amongst this you also have the small matter of supplying your product or providing your service as well as numerous other tasks (not all of them particularly enjoyable) around administration of the business.  The list could go on but sure the point is obvious.
• Humour and optimism – the ability to laugh and keep smiling through the trials and tribulations of running a business is a real asset.  Not only from a personal well-being point of view but it also works well (where appropriate of course) with anybody you deal with and helps build good relationships.  Often underestimated in the realms of the business world and, sadly, often lacking.
• Personal support – not really a “quality” as such but something you certainly need to assess and take into consideration when thinking about a business start-up.  There are lots of people who can support you in a business sense – advisers, bank managers, accountants etc – but the support of family and friends is absolutely priceless.  Particularly if they are willing to tell you honestly what you need to hear, rather than what they think you want to hear.

So, if you’re still up for starting a business there are a few more things to look at pre-planning and then the real work of bringing your business dream to a reality can begin.

Small business support
When starting a business it is unwise to be totally self reliant.  Sure, the idea, the execution and the rewards will be down to you but there is a vast amount of support available to make the easy decisions easier and the hard ones manageable to mitigate risk.

Utilise resources as much as possible to maximise your own knowledge and skills in making your business a success.  There will be times when expert and specialist advice is needed and being able to access support from trusted sources will be invaluable.  Some resources are free and some will require payment but the value lies in the quality of their help.

National support
Some key resources which are openly available:

• Companies House – provides guidance and forms for businesses setting up a limited company or limited liability partnership.  It contains guidance on your obligations for submitting accounts and provides links to the documents you may need.  See: www.gov.uk/government/organisations/companies-house
• The HM Revenue & Customs (HMRC) – essential for information on all aspects of tax for individuals, partnerships and companies.  From self-assessment to VAT and Corporation Tax to PAYE. You can also utilise HMRC’s online services through the website to file tax returns and pay your tax liabilities.  See: www.gov.uk/government/organisations/hm-revenue-customs
• Enterprise Agencies – located around the country and a rich source of support and information.  For a national picture see: www.nationalenterprisenetwork.org
• Chambers of Commerce – again, like Enterprise Agencies, Chambers are nationwide and they have many resources to help business start-ups including finance, networking, business events and help with more specific areas such as import/export.  See: www.britishchambers.org.uk but also see the links in our footer below where we link to Yorkshire Chambers
• Local Councils – business / economic development units operate within all councils and they also provide a wide range of information from research to local legislation which may affect your business.
• ACAS – provides information and advice to businesses on a wide range of employment issues with the aim of improving employment relations.  The ACAS website contains a wide range of tools and information as well as details of the nationwide ACAS training courses.  See: www.acas.org.uk
• Princes Trust – If you’re aged 18-30, the Prince’s Trust might be able to help you (if you are eligible there is potential for a grant or loan).  See: www.princes-trust.org.uk
• Enterprise Funds – provides access to potential finance where banks may not be able to help. There are numerous funds which operate in areas across the country and they often provide start up support as part of the funding package.  See: www.gov.uk/business-enterprise-fund
• Banks – many have dedicated business managers for supporting new business owners and although their main area of interest is the finance, (and getting you to open a business account!).  Their individual websites often have sections dedicated to start-up business and a wealth of tools and resources that can be utilised.  See: RBS | Barclays | Lloyds Bank | Natwest | Santander | HSBC | TSB

Content kindly provided by www.yorkshirepowerhouse.com visit them for free business templates & much more. 

Having a skill or being knowledgeable or experienced in an area that you feel can be turned into a business is no guarantee of success.  No matter which way you look at it, there has to be demand; it’s straight forward – without a customer you simply have no one to sell your goods or services to and that means NO business.

The first stage in assessing your business proposition is analysis and research, research and a bit more research. You need to establish demand and understand the market you are operating in.

There is a mass of free information out there about virtually every business sector and this can be very generalist (i.e. trends, market size and value) or quite focused (with regard to specific areas of business).  Knowing where to look is always useful and, apart from the plethora of online resources, it is extremely beneficial to utilise the business section of your local library, business support organisations (Chambers of Commerce for example) and individual trade bodies for additional sources of information on your specific area of interest.

Whether you are looking to exploit a niche market or offer something that exists but with a different twist, you still need to carry out a level of market research to establish a number of things with regard to your business proposition:

• Who are your customers?
  Depending on what you are offering, this could be quite a broad profile with a mass market or something more specialised which could be aimed at a more specific target.  Either way, you need to identify what your customer looks like and the more you understand them the more successful you will become.
• What do they think?
  You need to know what customers think about your offer.  You should gather opinions through speaking to potential customers about what you are bringing to the market.
• What will they pay?
  You must understand the value people put on your products or services.  Clearly you can charge a premium if you have something a little more unique but if the answer to the question “would you buy at this price?” is “no”, you probably need to reconsider.
• Who am I dealing with?
  Will you trade business to business (B2B) or business to consumer (B2C)?  The research you do and the questions you ask will take a different approach.  The key thing is that you evaluate the answers fully, make an honest assessment and learn from what the information tells you.
  *A small footnote here in respect to the research on customers.  By all means ask family and friends BUT REMEMBER, there is a strong likelihood they will tell you what they think you want to hear rather than a completely frank assessment and it is highly unlikely they represent your target audience.
• Who are my competitors?
  Never underestimate the power of having in-depth knowledge about the competitors in your market.  Never make the mistake of thinking you don’t have any – there will always be someone.  If nothing else, researching them can give you a good line of sight on the price or going rate for similar products or services in your market sector.  A crowded and highly competitive market could make your venture extremely risky and you may need to rethink to have a chance of being viable.
• Are there any barriers to market entry?
  A consideration often overlooked.  It is crucial you identify anything which can stop or restrict you selling your goods or offering your services.  This includes anything covered by legislation or regulatory (such as CE marking on certain types of goods, or licences/certificates to undertake certain types of activity such as food hygiene licensing for businesses like restaurants, cafes etc).  Additionally, your customers may need you to be affiliated to (or a member of) a particular trade body so you can do business with them.

After asking yourself these questions and pulling together the information you have researched, you will be much better placed to move forward with your business plan.  You will have a pretty good idea that the market exists for your idea to have commercial viability.

You may have to make adjustments and alterations to your approach and thinking but that is what research is supposed to do.  It might be the case that the research has exposed serious short comings in what you are planning to do.  But it’s better to find that out at this stage, when all you have spent is time, than later when the investment is much greater (both time and money).

In addition, it often happens that budding business owner’s work through several ideas before finding the right one to run with.  What has been outlined prior to this point gives you a solid template for assessing each one as they come along – so, don’t give up!