1. Validate Market; you must prove that a market exists

and define it, i.e. ID customers, groups, size and spend.

Is it static? declining? or growing? It’s more attractive if

it’s growing because you are not trying to take a share

from a competitor. A good business idea does not mean

there is a market, and only in very rare circumstances

are you creating a new market.

2. Confirm Competition; if there is no competition it is

likely there is no market. The biggest competitive threat

for start up’s is the potential that a client will do nothing,

because they do not see your value proposition.

3. Define Business Model; Have a clear and defined

business model (How we make money!). Model it,

identify revenue and cost drivers and convert to a P & L.

Make sure you have a primary revenue stream, it

confirms the business has a focus.

4. Carry out Feasibility; before you invest significant,

time and money, talk to the target customers and

market, present your business and confirm the market

exists and the proposed value proposition is accepted.

5. Create a Team; rarely will the initial promoter (s) have

all the skills required to launch a successful business,

know the gaps and how you will fill the gaps even on a

temporary or part time basis.

6. Engage with Public Support Mechanisms: There are

many supports available, not just financial, but advisory,

marketing and incubation programs, find the ones that

suit your business and engage early with them. (EI, INI,

BIC’s, Trade Associations – in Ireland).

7. Prepare a 10 page business plan; any less and your

analysis and detail are likely to be incomplete, much

more and your focus is likely to be suboptimal. The

business plan helps stakeholders understand the

roadmap and milestones you (They) are committing to.

8. Don’t boil the ocean; Focus on core business and core

model. Define the minimum spec. for your product or

service to enter the market and get selling quickly.

Customer and market feedback will help refine the plan.

You will confirm customer value as they will be parting

with money, and you get to market quickly (Be Agile)

9. Adopt good business practice; as appropriate for

scale and maturity of business apply good process,

practice and governance. It really pays back, helps

control the business performance and demonstrates to

stakeholders it’s in control (avoids exit transaction

issues)

10. Adapt & Respond Don’t be afraid to change the

business as you learn in the Market & Terminate the

business quickly if it is failing.

Starting a new business is both

exciting and risky. Over the past

few years I have met with many

entrepreneurs and reviewed

many business plans.

Tremendous talent and creativity

exists in our society and

technology is enabling innovation

whether it be products,

processes, or services. However

the time to realize the value of

the promoters’ investment is

influenced by a huge amount of

variables and these tips are

designed to give some pointers

to entrepreneurs considering a

new venture or in the early

stages of a new business.

Notes & Comments