How to go about starting a business

Wednesday 21 November 2012

Would-be entrepreneurs looking to start a business are being urged to follow a five-point plan.

Public information service Gov.uk says the first thing to do is to research the market of choice and identify potential customers - who is it that is likely to buy goods or services?

Speaking to members of the public about the proposed business offering, and gauging their opinion, is vitally important.

This helps establish whether the business idea has a chance of working, or whether it is a folly that will end up costing the owner money.

Secondly, the potential business leader needs to develop their offering and form a business plan.

"Test your product or service with real customers, make changes, and test it again. Keep doing this until you’re sure there’s a demand for it," Gov.uk urges.

Thirdly, they should aim to identify partners and suppliers - people who they can work with to develop and sell the idea.

Few businesses are likely to succeed if the founder decides to go it alone. Indeed, the enterprise has a much better chance if they consult people who have taken the same journey.

The fourth stage is to set up the business - and this involves working out which legal structure is most appropriate.

And finally, the company founder needs to attract funding.

"Explore different sources of business finance, from bank loans to government-backed schemes," Gov.uk urges.

Posted by Jenny Arthur