Prepare for worst
by Rosie Allsopp
THE importance of research and planning when considering going into business cannot be overstated.
The Enterprise Agency’s Tony Brassell said market research might take time, but the results would be invaluable.
‘Talking to potential customers, suppliers and even competitors is essential when you are planning a full-time business on which your future might depend,’ he said.
He advised budding entrepreneurs to talk to States departments to find out any applicable laws and to assess opportunities and threats as well as looking at trends which could have an impact on success.
Mr Brassell said once the market-research phase was over, it was important to consider goals and future growth of the business.
‘What are your aspirations for the next year and the years ahead? How are you going to achieve them?’ He added that it was also vital to give the business the right name and to think of brand considerations.
‘Have you a name that can grow with the company and meet your aspirations? Does the name convey the business you are in?’
Deciding whether to be a sole trader, a partnership or limited liability company was another consideration, said Mr Brassell.
He urged potential business people to put their thoughts on paper. ‘Don’t forget the plan. It will be the foundation on which your ideas and aspirations can grow. It will show you how you are performing and give you a sound base should you wish to secure finance.’
Being a pessimist and considering the worst that can happen might seem like the best ways to put off taking the plunge, but Mr Brassell said they were essential.
‘Take the risk assessment and decide whether you can cope with the risk should the worst-case scenario actually happen.’
Once the planning is complete, it is important to find out whether the business ought to be registered and to talk to a bank about setting up an account.
‘There will be States approvals, laws and licences relating to the business.
‘You will need to register for tax and social security and you will also need insurance such as public and employee liability, critical health cover, continuity and other considerations,’ said Mr Brassell.
‘With all this planning, it may be time to seek comfort by obtaining professional advice from an accountant, advocate or even an estate agent.’
Mr Brassell said there were some excellent publications that were essential reading for anyone considering going into business.
Books such as Start Your Business Week by Week, by Steve Parks, From Acorns ... how to build your business from scratch, by Caspian Woods, and The Entrepreneurs’ Book of Checklists, 1,000 tips to help you start and grow your business, by Robert Ashton, are recommended reads.
Published 25/10/2006,
© Guernsey Press and Star