So you have a fantastic idea you know will make a great deal of profit and will be bought, or used, by the public. You’ve been watching Dragons Den and have taken notes of how and how not to go about starting a business. As everyone dreams of being their own boss and working 9-5, in reality it is no easy feat, but it doesn’t mean it can’t be achieved, as having knowledge is vital when commencing any venture, you just need to make sure you have a business head screwed on and you follow the brief guide compiled below to set you on your way!
If you’re reading this guide, it is safe to assume that you already have an idea. It needs to be realistic and one with potential of bringing in profit. If you have done this, then you will need to protect your idea by registering it. This will prevent anyone from taking credit for your invention and possibly stealing it.
Iron out the details
One of the most important aspects of any business is knowing who your customer is. Is there a gap in the market for your idea? Will they need it? Once you have established who your target customer is, you should talk to them about your idea and get feedback. There is nothing worse than creating your idea to find out it does not meet your customers’ expectations. This will allow you to remove any ‘weaknesses’ that your product may have.
Develop a Business plan
A business plan should clearly detail the results of your customer research as well as explaining how your product and/or service will profit. This is important when getting a business loan or asset finance to support your business, as the lender will want to know if the money they are putting forward will go towards a viable business.
Finding finance options
As mentioned above, unless you have spent years putting money aside to finance a new venture, you may need to seek other avenues. The business loan is a typical and common option to start a new business, as you can arrange repayments and interest rates with a lender. However these are more difficult to obtain than a standard loan. As there may be a slight possibility your business might not work, you need to convince the lender to provide you with the finance. This is where the business plan comes in.
An asset finance is the act of a company pledging its accounts receivable or inventories to obtain loan, or cash. If your business has started out, this is a handy option to purchase machinery. Many financial product specialists can provide you with lenders who can assist in setting up asset financing.
Starting a new business should not be a complicated path, if you know you customers well and have a sound business plan, you should not have any problems. Most banks can support you in any new business ventures and can aid you in what you need to put into your business plan. Just remember to seek as much support and advice as possible
Harry Price is a a fulltime writer who loves to travel in his space time. He loves to learn new languages and experience new adventures.