By Don Wehby, Contributor 
Wehby
ESTABLISHING ONE'S own business is the goal of many individuals. The motivating factors range from the expected financial benefits to a desire for the independence and control inherent in being an entrepreneur.
Prospective entrepreneurs must have the commitment to overcome initial difficulties and setbacks that come with the start-up process. Additionally, they must possess the necessary skills to operate the business or be in a position to employ the required expertise. Knowledge in the areas of finance, general management, marketing and sales, as well as the technical aspects of the business, is essential. They must also have financing in place to support the business.
MARKET RESEARCH
Some market research is required on any business idea this may be done formally or informally. The research should convince the prospective
entrepreneur that there is a demand for the product or service that is being considered. The research should address questions about the size of the market, the players in the market, how their businesses are performing, what share the competitors command, and what share of the market the new business is likely to gain.
The researcher also should determine if the market is growing, stable or declining. Insight into what the potential customers desire is important what price are they willing to pay? How do they want the product delivered? What features do they want? How often will they purchase? These are all questions that must be answered in the research process.
Research can be done by talking to potential customers, friends, relatives and other business people or, more formally, a research professional can be engaged to obtain information on the market by surveys, focus groups or other research methods. The results can be invaluable in helping you to refine your product into one that the market really wants.
A business plan allows you make your mistakes on paper, rather than in practice. A good plan will reassure all parties with an interest in the business that you have looked at the project in detail and are well prepared for the future. The business plan should include the overall objectives of the business, the product or service being offered and their differentiating features.
CRITICAL COMPONENT
A critical component is the marketing and sales plan, with a clear indication of the target market, pricing strategy, sales techniques to be engaged and the method of distribution. A review of the competition should also be included. The plan must include projected financials including profit and loss statements and cashflow projections. Sources of funds should also be included.
The plan should indicate who are the shareholders and managers of the business. The qualifications and experience of the key persons expected to be involved in the day-to-day operations and the decision-making process should be
documented. It must answer the questions of what are you trying to sell? Who are you trying to sell it to? How will they find out about it? What is the price you intend to charge for it? The concept of whether the product or service is unique, how long it will retain its status and how easily it may be duplicated should be well examined and documented in the plan.
To be an entrepreneur, leadership is one of the most important qualities for success. I often quote to my management team Jack Welch's 'four Es' of leadership, which I now share with you:
Very high energy levels
The ability to energise others
around common goals
The edge to make tough
'yes-and-no' decisions
The ability to consistently
execute and deliver on
promises.
