1: The idea
A good business idea is not determined by your interests, it is determined by what the market is interested in. If the two coincide then great but the first is a bonus, the second a prerequisite.
Detecting a market opportunity, entering as a disruptor or creating a market where none previously existed, all requires a customer need of sufficient value that can be serviced at a competitive price and a profitable margin.
If these criteria are not met, then your idea will not work in its current form; no matter how ingenious or differentiated.
2: Market Research
Occasionally, businesses identify a greenfield market but this is very rare. So be prepared for competition either directly or through substitution. That means knowing the capacity and reach of other players in your market and the nature of their offering.
You will also need a clear picture of the present and future value of the market, which means understanding your customers.
This information will help you identify whether your business is viable. It will show where your market is and how to access it. It may also reveal niche markets you were unaware of, and inform innovation within your business. It is also a fundamental building block of a business plan.
3: Business Plan
When dealing with lenders, investors and other sources of finance, they all want to be confident of a return on their money. The basis of their assessment comes from your business plan.
There are countless templates available showing the format and content required but the quality of information is down to you. If you are not thoroughly researched or your assumptions lack credibility then you are unlikely to get any form of institutional support from the public or private sector.
Even if you do not need this type of support, the business plan is a key tool for assessing the viability of your idea.
3: A good team
Every entrepreneur has strengths and weaknesses so it is important to surround yourself with people who have skills complementary to your own. They may need extra training, or as your business develops, you may need to hire the expertise of specialist companies and consultants.
Your suppliers, contractors and advisors also need to be the right fit in terms of experience and capacity to meet your needs.
4: Strategy
This where you map out how you will implement your business plan.
Your strategy should account for route to market, marketing, financing and how you use your budget. It typically covers a three-to-five year period and includes Key Performance Indicators for measuring progress and making adjustments as required.
Issues such as supply chain, staffing, internal processes, developing new offerings and expanding your market footprint will be in your business plan and should also be accounted for in the strategy.
5: Budget and Finance
Cash flow is one the biggest challenges to a business so you must have a clear idea of your likely expenditures, income and lines of credit.
Budgets can be set annually with multi-annual projections but in start-up phase, month-to-month budgeting is advisable until a clear pattern of income and expenditure emerges.
When it comes to getting finance, it is important that the terms and conditions are both affordable and prudent.
6: Elevator pitch
You should be able to explain your offering in 30 seconds or less. Customers, investors, suppliers, potential partners and agencies all need a clear and easy-to-remember takeaway of what you are about.
Your pitch should outline how your offering addresses a problem for the customer and why you have the credentials to provide a quality offering.
When seeking investment or finance, you should also be able to outline why your business is or will be profitable.
7: Marketing
Never stop selling. You may be buying advertising, attending trade events, direct marketing, distributing collateral and securing appointments with potential buyers but you can do more.
As a start-up, creating awareness of your products or services is crucial but it should not be the only goal of your marketing. It is also involve making as many people as possible aware that you exist and the business you are in. This is often the first step to attracting a customer inquiry.
Word-of-mouth marketing is very powerful and stimulated in many ways. Owned channels such as your website, social media, signage and networking events are all low-cost ways of getting your name out there.
Earned media and customer recommendations can also make your business a topic of conversation. And of course, make sure your family and friends know what you do. They can be you free brand ambassadors.
8: Legal
Create an appropriate legal structure for your business. Registering as a limited company gives you protection from creditors if difficulties arise.
Be sure also, to give full consideration to the shareholding structure – if any.
You should also be fully versed in the regulatory environment for your offering within your target markets. This applies to patents, licensing, registrations, insurance obligations, labour laws and more.
Get advice from a solicitor, accountant and/or other relevant professional.
9. Determination
Starting a business usually means giving yourself over almost completely to the venture for a number of years. It can mean lots of travel, weekend work, late nights, hours of menial tasks, missing out on social and family events.
Also, be prepared for setbacks. All the planning in the world cannot prepare you for the unexpected. You will need mental and emotional fortitude to keep yourself and your team motivated when things go wrong. When starting a business, you must be willing to make personal sacrifices, take knocks and keep going.
10: Get help
Enterprise Ireland helps start-ups and early-stage ventures with a range of mentorship, advisory and training supports along with grants, equity investment, research, training and networking opportunities.
