Starting a business is exciting. There's freedom, job satisfaction, financial gain and working out of your home to look forward to. Sounds good, doesn't it? But there's a big difference between the dream and the reality of long hours, stress and irregular income.

The key to success is research and planning.

 

Step 1: Do your research Don't quit your day job on the back of an idea. You've got a long way to go before you get your business off the ground.

Business research will help you determine if your venture will succeed or fail. Is your idea feasible? Who is your market and who are your competitors?

Do your sums. How many products will you need to sell? How many hours of work are required, and how much will you need to invest initially? Do you need a loan? Your idea should use your experience, skills and, most importantly, what you know best.

Step 2: Write a business plan If you think your idea will work, and you'll make money, it's time to do a proper business plan to help develop a strategy and give you direction. You will need one to get a bank loan.

Put your idea on paper. Explain your aim and how you will achieve it. Detail how it will work, including the structure, location and tools required. Outline your role and how you will manage the business, staff and marketing. Describe the industry, competitors and your strategy to win customers. Think about opportunities, strengths and weaknesses.

Include the financials, such as start-up costs and estimated month-to-month costs. The plan doesn't have to be a novel, the important thing is to have a document to keep you on track.

Step 3: Put your plan into action. There's no right time to start a business. If you have a good idea, you're passionate about it and the figures add up, don't put it off. Make a timeline with deadlines, and go for it.

 

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