Research and Planning are the Priorities in business start up’s says, Michael Borge, Business Manager, NatWest.

Many considering a business start up will no doubt have concerns about their prospects for success in the present economic climate. However, the same principles apply today as they would in more optimistic times.

It should always begin with research. Successful entrepreneurs understand the marketplace in which they are competing. They decide on a product or service and have to convince themselves that there is a need for it in the market. There are a number of tough questions to ask such as will they be able to sell what they produce and will they make a profit once costs and overheads are taken into account?

A thorough appreciation and review of the competitors in the market is required and once it has been established that the product has a competitive edge, work will still be required to make potential customers aware of the product or service. The cost of marketing and promotion has to be included in the planning process. Alongside this, there are overheads such as renting premises, employing staff, IT equipment and other business costs, to build into the equation.

Cashflow projections can only be an estimate and will involve some guesswork but they are nevertheless essential. Entrepreneurs should be realistic in their assessment of their new venture, especially in the current climate.

At some point in the start up process, the raising of finance will need to be considered.

There are a number of options including a bank loan, a commercial mortgage for premises, leasing or hire purchase. High Street banks will inform you on the options and how to get the most from them, applicants seeking funding should come well prepared.

The bank adviser is likely to be impressed if its clear that research has been undertaken and a considered business plan has been prepared. Discussions are required on whether the applicant is intending to invest his or her own money in the venture, whether there is a need for a start up loan and if so, the scale of it and the repayment programme that will be required.

There is considerable advice available also from a variety of organisations and there are specialist bankers to talk to who have experience of the marketplace. It’s a combination that should help point the would-be entrepreneur in the right direction before opening the doors on a new business.