Thinking about setting a new business?

What do you need to consider?

Business Idea

Whether you have identified a gap in a market, are planning to buy an existing business or buy a franchise, you need to make sure that the idea is viable and this section is designed to help you consider your options.

Did you know? Enterprising UK student Alex Tew sold enough pixels to fund his way through university. Tew, 21, decided to flog pixels for a buck on his www.milliondollarhomepage.com as part of a cunning scheme to raise cash.

What are your skills?

Think very carefully about your strengths and weaknesses and be honest with yourself! You are unlikely to be able to do everything yourself – certainly not effectively. A successful Business requires sales, administration, accounting, and strong marketing, as well as the core trade/product/idea/profession! The way to succeed is to “do all the bits that you can do well, and get help for the rest!”

Are you going to start from scratch?

Setting up something completely new can be extremely exciting - but challenging! With so many different things to think about, it can be easy to overlook something. The Starting Up section of the Businesss Link website contains a feature entitled ‘Common mistakes when starting up and how to avoid them’ (www.businesslink.gov.uk)

Buy a business?

Buying an existing business is a good way to leapfrog much of the set up process. Although the cost of purchase may be higher than if you started from scratch, you do gain a trading concern from day one and should be able get a realistic idea of the potential turnover/profits from the audited accounts.

Top tip - if you like the idea of buying a business, Daltons Weekly and Exchange & Mart have a vast selection of opportunities advertised every week. Over 30,000 business are also offered for sale at: www.businessesforsale.com

Buy a franchise?

Franchising is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade under the trade mark/trade name of the franchisor. The franchisor will receive an initial fee from the franchisee, payable at the outset, together with on-going management service fees - usually based on a percentage of annual turnover. In return, the franchisor has an obligation to support the franchise network, notably with training, product development, advertising, promotional activities and with a specialist range of management services. For more information see our Franchise section.

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