Details: Created: 04 March 2013; Last Updated: 15 February 2018

Why Plan? Business Basics

First published in 2003

What to look for when starting a Small Business

The Task Force on Small Business says “Since the 1970’s, the international trend has seen small business become a net creator of jobs, while large business has been a net shedder of jobs. This has been reflected in Ireland, where the proportion of jobs in small business has been steadily growing. Increasingly, when Irish people find jobs, it is in the small business sector.” It goes on to say “... 56% of grant aided businesses set up in 1983 were not in existence ten years later”

Starting and managing a business takes motivation, desire and talent. It also takes research and planning.

Whilst there is no right way to start a business, there are loads of wrong ways. Like a game of chess, success in small business starts with decisive and correct opening moves. And although initial mistakes are not fatal, it takes skill, discipline and hard work to regain the advantage.

To increase your chance for success, take the time up front to explore and evaluate your business and personal goals. Then use this information to build a comprehensive and well-thought-out business plan that will help you reach these goals.

The process of developing a business plan will help you think through some important issues that you may not have considered yet. It will provide you with a system or structure for researching and starting your business.

Your plan will become a valuable tool as you set out to raise money for your business. It should also provide milestones to gauge your success.

Getting Started

Before starting out, list your reasons for wanting to go into business. Some of the most common reasons for starting a business are:

You have been made redundant.
You are too old or young, wrong sex, etc. to get a job.
You want to be your own boss.
You want financial independence.
You want creative freedom.
You want to fully use your skills and knowledge.

You need to determine what business is "right for you." Ask yourself these questions:

What do I like to do with my time?
What technical skills have I learned or developed?
What do others say I am good at?
Will I have the support of my family?
How much time do I have to run a successful business?
Do I have any hobbies or interests that are marketable?

Then

You should identify the niche your business will fill. Conduct the necessary research to answer these questions:

What business am I interested in starting?
What services or products will I sell?
Is my idea practical, and will it fill a need?
Will people pay for my product / service?
Who & what is my competition?
What is my business's competitive advantage over existing firms?
Can I deliver a better quality service?
Can I create a demand for my business?

The final step

Before developing your plan, answer the following shortened pre-business checklist:

What skills and experience do I bring to the business?
What will be my legal structure?
How will my company's business records be maintained?
What insurance coverage will be needed?
What equipment or supplies will I need?
How will I compensate myself?
Will I need staff, full time, part time, temporary, contract, etc.?
What are my resources?
What financing will I need?
Where will my business be located?
What will I name my business?
What areas of the business will I need help with?

Your answers will help you create a focused, well-researched business plan, which should serve as a blueprint. It should detail how the business will be operated, managed and capitalised.

One of the most important cornerstones of starting a business is the business plan. The Synergy Group offers you a service on preparing a solid plan with all its essential ingredients. Be sure to review and check this out.

Once you have completed your business plan, review it with a friend or business associate. When you feel comfortable with the content and structure, make an appointment to review and discuss it with your banker. The business plan is a flexible document that should change as your business grows.

When your business is started, remember that your time will be taken up with running the business, making sure customers are happy, getting in new business, getting deliveries out on time, collecting money, & so on. The best laid plans at this stage will go out the window if you don’t control your own time, follow your plans & strategies in order to achieve your objectives and recognise your weaknesses. One of those weaknesses will more than likely be in the area of the general management of the company and in areas of general business. You may be the best carpenter or computer technician in the world or whatever service you provide, but you can’t be excellent at doing everything. This is where you should use the services of outside experts. The Synergy Group are a small management consultancy firm that don’t cost an arm & a leg.