Business objectives

Deciding to 'go it alone' can be extremely risky. Having clear objectives from the outset is therefore crucial. You may have given up a profDeciding to 'go it alone' can be extremely risky. Having clear objectives from the outset is therefore crucial. You may have given up a profitable job and borrowed money on your major assets, often the family home, in order to fulfill your dream.

If your business is to be a success you will need to be ambitious, determined, committed and resilient. You will also need advice from people who understand your situation and who can help you transform your dream into a reality. Decisions taken at the outset can make a fundamental difference to the future success of your business.

• You will need to quantify precisely what you want your business to achieve and how you plan to get there -- a brilliant idea will count for nothing unless it is truly viable and there is a market for it.
• Undertake market research to determine where your business will fit into the marketplace. Who are your competitors and how are they likely to react to a 'newcomer on the block'? Who and where are your customers?
• Examine your strengths and weaknesses both personal -- do you have the mental and physical strength to run your own business ? – as well as commercial.
• Be realistic about the costs involved -- underlying expenses such as insurance premiums and life assurance will affect your profit-making capabilities as well as the more visible expenditure on salaries, premises and marketing.
• Decide what legal structure the business will take (sole trader, partnership, or limited company?). Will you have employees, in which case do you understand employment requirements and regulations? Will you need to be registered for VAT? Will you need to establish Articles of Association? What are the tax implications of any of your decisions?
• You will also need to consider the question of finance. How do you plan to fund the costs of set up and future growth? How are you going to convince backers that you are a worthwhile investment? (see The Business Plan) Can you survive until you are ready to begin trading? How do you intend to draw money from the business?

Grant Thornton has considerable experience in helping owner-managers achieve their ambitions. Business start-up is likely to be a new experience for you - but for us, helping entrepreneurs develop their ideas into commercial success, is a day-to-day occurrence. We can help you determine what you want the business to achieve, both in the long and short term, and to establish realistic goals.