There are three ingredients for a successful business start up:

1. A good idea,
2. The right person behind it
3. Sufficient resources

A good idea is one that is commercially viable and the only way to test this is through market research.  I’m a great believer in new businesses entering established market sectors.  Why?  Well my heart always sinks when a client says to me that they know their business will be a great success ‘because no-one else is doing it’.  There are so few brand new business ideas in the world that if it’s not being done now it could well be because no-one would want to buy it.  Of course there are some great ideas about doing something differently and better than its been done before and a very good reason for customers to buy from you – so if you need a business idea, think of all the times you’ve bought a product or service and thought – I would have done that so much better.

The right person behind the business will have the skills to run the business as well as ‘doing the job’ and have certain characteristics such as being extrovert, hard-working, creative and determined.  O.K. Introverted people run businesses too – but you’ll probably know when you’re dealing with one!  People buy from people and extroverts love dealing with people!  Introverts on the other hand don’t.  Skills can be learned but characteristics are very hard to change.  Assess your character honestly – will you bounce out of bed ready for business every day?  When faced with a problem can you think your way round it?  When you get knocked back can you pick yourself up, dust yourself off and start all over again?

Resources in a business are: people (you!), skills, time, money and capital equipment (you can’t be a mobile car mechanic without a vehicle).  True, if you have loads of money you can buy other people and their skills and time and all the equipment you need – but most people starting a business don’t.  This means you have to take a pragmatic and realistic approach: dream of untold wealth by all means but understand that it may take a little time to land in your bank account and is probably going to involve a bit of grafting!

I’ll soon post my next blog about starting a business with limited funds and how to raise business finance.