Starting up a Business

What makes a great business idea?

By Antonia Chitty

Starting any business is a risk, and most mums want to maximise the chances of their business being a sure fire success. Getting the idea right in the first place is vital and can save you time, money and effort. Here are some factors which will help you check out the pros and cons of any business idea:

Does the business have a unique niche?

The more unusual your business, the less competition you will have. If you can find a unique niche, supplying a group of customers with something they can’t get elsewhere, you’re onto a winner. The internet has made it easier to reach out to groups interested in your special niche. Watch out for niches that are just too small for a viable business, though.

Will it suit you?

Before you evaluate a business idea, are you sure about your needs? What hours do you have available to work? Are you looking for pocket money or an idea with potential to support the family? You might want to take into account whether you want to use childcare, or would prefer a business where you can keep the kids with you. In ‘The Mumpreneur Guide’s Start Your Own Business Book’, the first chapter includes an exercise to help you assess your needs.

What will it take?

Once you are clear about what you can commit to a business, you need to assess the resources that the business will take. What hours will you need to invest? The amount of money you can invest to start your business is another key factor in deciding whether a business ideas is a goer. This is where a business plan is helpful: the more work you put into planning your business the easier it is to cost out your expenses for the first year and more.

Make sure it will work

So, once you’ve weighed up your business idea and are convinced that you have a go-er, what next? Well, good research is the next step. Come up with an outline of what you want to sell and some possible charges. Create a survey of potential customers and get their views on your offering. Make sure you spread the survey beyond friends and family who are likely to give you positive responses.

Tips for getting started

 

  • What resources will you need for your business? Try to estimate what you will need over the next year, and take a broad view by looking at possible longer term expenses in the next five years.
  • Allow a certain amount to get your business going: you may want business cards, headed paper, or promotional flyers. Factor the cost of these into the price of your product. A simple website and email address is an essential investment for most businesses. You could need access to a computer.Most businesses need a phone number: will you get a second line, or buy an additional number to point at your existing line? And will you want a mobile specifically for business? A mobile which also takes emails can be indispensible for juggling mumpreneurs who fit in work while waiting for the kids.
  • Will your business need equipment?  Plan out the basics of what you will need, and guess how often you will need to replace things. Budget for replacements and upgrades in your business plan, and include an element for this in the cost of your product or service. Remember that you may need to move from using basic home equipment to something more robust: you could find your iron needs replacing more often, for example, if you start to offer a home ironing service.
  • You should also think about where to work. Will your business launch from the kitchen or dining table, or spare room, or will you need premises? Where will you store stock? Cost up storage shelving for the garage or spare room.
  • If you want premises for your business, weigh up the cost of renting a unit in the local business centre: this can be less costly than a shop and may come with some services included.
  • You may need a budget to upgrade your workspace. If you are catering from home, your kitchen will need to meet health and safety requirements. There are also requirements for your home if you are setting up as a childminder. Some mumpreneurs remortgage to create an extension to house the business.
  • If you are going to sell a product, you are likely to need money to invest in stock. Before you can spend, however, you will need to find suppliers which can take time. Look at trade fairs, join directories of wholesalers online, search on the internet and even look through the telephone directory. Alternatively, you could consider drop-shipping, where your supplier holds the stock and delivers direct to your customer.
  • Finally, don’t forget the crucial issues of insurance and your terms and conditions. These may be less exciting than buying new products or designing your site, but no business should start without them.  Will you need public liability insurance, employers’ insurance, insurance for your buildings or equipment or professional indemnity insurance? If you are working from home, check with your home insurance provider: they will want to know if you are operating a home business.
Introduction
You and employment law
A New Career Related articles
Working from home

Back to introduction