by Philip Lop

Created on: July 25, 2011   Last Updated: January 04, 2012

Starting your own business always feels like an exciting concept. No longer having to work for somebody else, ensuring that you are the main beneficiary of all your hard work and building something up that you can truly call your own are all common reasons why individuals feel compelled to start their own business.

Of course, going into business is never easy. Many businesses fail. Data from the U.S. Census Bureau suggests that around 50% of businesses cease trading within five years. That's quite a frightening statistic, but there are countless reasons for business failure and opportunities always exist. So when you decide you have had enough of working for somebody else, how do you start your own enterprise?

Develop your idea into a business plan

To start your own business, you need an idea. Ideally, it should be something unique but that doesn't mean it has to be an entirely new market. It could be a new product in an existing market, a cheaper version of a popular product or simply a better proposition in a very competitive market. But your business needs a unique selling point. It has to bring something new to the table. That is best translated in a business plan. A business plan outlines how your product or service will be marketed, what the competition is, who your customers are and how you will reach them. It needs to be compelling. You will need to persuade others that it is a good idea to get investment and support. Your business plan could be the most important document you ever write.

Arrange finance

Unless you are fortunate enough to have a large lump sum to invest, you will need to arrange finance. Even if you do have some to invest yourself, you may need to top this up. The most likely form of finance will come from a bank loan, but private investors will also want to see a compelling business plan before they are prepared to give you funding. Research all the options open to you. According to the business type of your circumstances, government funding may be available. The way in which you intend to structure your business could dictate how it is funded. Get expert advice and consider all the possibilities before jumping straight in. Above all, you need to pursue the option that has the least impact on your personal income.

Develop your operating model

There are a number of commercial pressures that will affect the way your business operates. Legislation and legal requirements weigh heavily on what businesses can/not do. Your target market will

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