| More people are wanting to start their own business, | | | | purchase a franchise which offers the opportunity to |
| redundancies, the desire for greater flexibility in working | | | | buy a business which is based on an existing business |
| hours, the increased satisfaction of working for | | | | model and you will be allowed to run that business in a |
| yourself, have all contributed to the increase in | | | | certain geographical area. The golden rule when |
| business start ups. These fledgling businesses will | | | | deciding what product or service to offer is "make |
| eventually grow into the small/medium sized | | | | something that people want to buy", this may seem |
| businesses which it is hoped will begin to revive the | | | | obvious but many people start a business selling a |
| economy and provide much needed employment. | | | | product they like but ultimately the business fails |
| However a word of caution needs to be voiced to the | | | | because enough people do not want to buy it. |
| new business starters, the facts are that many | | | | Other information you need to know. |
| businesses fail in the first year of trading and whilst the | | | | Quite simply the more information you can find at this |
| reasons are many and varied one of the main factors | | | | stage the more informed your decision will be on |
| is that they did not have a clear vision of what they | | | | starting the business, as much information as possible |
| wanted from the business and they did not do their | | | | should be obtained on the following:- |
| homework on the fundamentals, customers, the | | | | - customers |
| market they were entering, selling price of goods | | | | - competitors |
| service etc. So whilst the thought of having your own | | | | - product |
| business and the rewards and freedom it offers are | | | | - cost of production |
| quite tempting a degree of caution should be noted as | | | | - selling price |
| a great deal of homework needs to be carried out | | | | - the product market |
| prior to actually starting the business. | | | | The work undertaken at this stage could prevent poor |
| Items to consider:- | | | | decisions being made and as a result save |
| What do you want from your business. | | | | considerable time and money. Another golden rule to |
| Do you want to build a business over many years, | | | | consider at this point refers to the proposed selling |
| expanding whenever possible, looking to employ | | | | price of the product, "the selling price is not the cost of |
| additional staff etc. or are you looking for a business | | | | production plus profit margin, it is simply the price |
| which will provide a certain level of income with no | | | | people are willing to pay for the product". Consideration |
| desire to grow beyond that level envisaged, or are you | | | | should also be given as to what the products unique |
| the serial entrepreneur who will start the business and | | | | selling point will be, what will make people buy this |
| then look to sell it at some stage before moving on to | | | | product rather than a competitors product. |
| the next project. | | | | The points outlined above are not intended to be |
| What product/service will your business provide. | | | | exhaustive and some additional considerations may |
| Many people want to start a business but do not | | | | need to be addressed once the background work is |
| know what they are going to do, there are obvious | | | | undertaken, the important issue is that this work is |
| advantages to offering a product or service in a | | | | done prior to starting the business, so that the decision |
| market in which you have some knowledge of, or | | | | to start is based on sound judgement and a clear |
| have previously worked in. Another option is to look to | | | | vision. |