Start Your Business Becoming an Entrepreneur?
Is it for you? Not everyone wants or can become an Entrepreneur, although more and more people are attracted to the appeal and reward of being self-employed. Check out what’s available to your business and the appropriate agency by downloading the ‘Guide to Business Supports in Donegal’
The Business Information Service has several useful publications for anyone starting their own business which you can download by clicking on the name of the publication you require.
Some Initial Steps in Setting Up Your Own Business
You may have a business idea which you want to investigate and develop further. Listed below are some first steps to consider in turning your business idea into a reality.
· Research your market (identify your competitors, customers, market size and trends).
· Check out your sources of materials/supplies, their availability, cost and trading terms.
· Examine your production requirements (machinery, equipment, tools).
· Decide if you will need staff. Examine how you will sell and market your product / service.
· Check out suitable premises for your business.
· Review the legal frameworks for establishing a business e.g. Sole Trader,
· Limited Company, Partnership, etc and the responsibilities associated with each.
· Decide which framework or business structure is most appropriate to your business.
· Verify any regulations which might affect your business i.e. appropriate planning permission, insurance, health and safety, environmental health, patents, trademarks and copyright, etc.
· Estimate the costs to set-up and maintain the business and investigate where you might raise the money.
· Establish the selling price of your product/service to ensure that your business will make a profit.
· Draft a Business Plan.
Preparing a Business Plan
- Many potential start-up businesses find the prospect of writing a business plan a daunting task, but it need not be a difficult process. A Business Plan has essentially three purposes:
- Focuses the mind on defining a clear business idea and setting the short-term and longterm objectives of the proposed business;
- Provides a blueprint for running your business and achieving your business goals;
- It is a means of communicating your ideas formally to others, whether it is your Bank, a support agency or key suppliers, and convincing them of the merits of your project.
It is worth spending time to thoroughly research and prepare your Business Plan as it will have a significant bearing on how your project is perceived. A poorly presented business proposal will have little chance of convincing your bank manager, the Enterprise Board and others to fund your project. A well-prepared and researched Business Plan is therefore vital.
Outline of a Business Plan
Every Business Plan should contain an Executive Summary - a one-page summary of the entire business proposal comprised of the following sections.
Business Plan
Profile and Objectives of the Business
Provide background information on your proposed business idea and the promoters / management of the business.
Describe briefly the services or products your business will offer.
Give a profile of the business i.e. its location, staffing, capital requirements, business structure, sources of funds, etc.
Market Analysis
Describe the market you plan to target. What is its size and growth rate?
Outline any key features of the industry and market trends.
Who is your target group or key customers?
What are their needs and preferences?
Provide information on your competitors, their share of the market and how the competition will affect your business.
Where is the market opportunity?
Sales and Marketing
How will your product or service meet your customers’ needs?
How will you position your product or service i.e. how does your price, quality, design, etc compare with competitors?
How will you sell to your customers i.e. telephone, premises, website, agent, etc?
What are your market entry plans: method, timing, etc.
Who will your first customers be and how will you identify potential other customers?
How will you promote your product or service i.e. direct mailing, advertising, website, PR, etc?
The Product / Service and Operations
Describe the proposed product or service?
Provide details of the location of your business, ownership / rental status, size and adequacy.
How will production be organised and controlled?
What is the cost of the equipment required by your business?
What are your staffing requirements and associated costs?
Identify your suppliers and purchasing strategy.
What are your quality control procedures?
How will you distribute your product?
Are there specific regulations affecting your business i.e. does your product have to comply with regulations such as Health and Safety or HACCAP?
Does your premises have appropriate planning permission?
Should your product be patented?
SWOT Analysis
Identify the main strengths, opportunities, weaknesses and threats facing the business.
Financial Information
Provide a projected Sales Forecast, Profit and Loss, Cash Flow and Balance Sheet for 3 years.
Outline how much finance your business will need both in terms of set-up costs and working capital requirements and in what form (own resources, grant, loan, overdraft, etc).
Conclusion
Summarise the merits of your business idea, how it will become a commercially viable business and why it should gain the support of possible financial backers.
Appendices
Curriculum Vita of the Promoters.
Summary of Financial Assumptions (e.g. prices, volume, timing, etc).
Internal structure of the Company.
List of plant and machinery required.
Any other supporting documentation.
Declaration by the applicant that the information is correct and accurate.
Some Useful Tips
Keep your business plan short and to the point – most business plans are too long.
Present it professionally.
Seek feedback from friends or an expert advisor.