When starting your own business, the more you know,

the more confident you can be!

The risks, challenges and rewards of starting your own business are attractive. But for so many startups, the risks grow into show-stopping reality.

There are four steps to starting your own business:

1. The idea
2. Evaluating the idea
3. Planning
4. Execution

STEP 1: GET AN IDEA
If you've already got an idea to play around with, you've got a head start. A bright business idea can literally appear from nowhere, and often seems obvious in hindsight.

But when you really need an idea, sometimes the harder you look, the harder it seems to get. So open your mind, and seek as many new stimuli as possible.

Ideas can come from your interests, skills, hobbies, while on vacation, reading, surfing the net, standing under the shower, talking to someone new or daydreaming at work. Read widely, and be prepared to accept, reject, review and revisit anything that comes to your mind.

And since over 90% of "bright" ideas are not commercially viable anyway, simply allow your thoughts to roam and flow, recognizing that some will be useful, and some not.

STEP 2: EVALUATE THE IDEA
Evaluating an idea for commercial viability is a logical process:

• study the past
• gather current data
• make qualitative judgments
• make logical predictions

Objectively answer the questions, who?, what? ,where?, when?, and why?, in relation to your idea, and record the supporting evidence. (For more detailed suggestions, review our marketing plan strategy notes.)

Can't get the data? Just do it!
Sometimes it's hard to evaluate an idea because research is not available, or for some other practical reason you can't get hard data. When that happens, and your gut feel tells you it could be worthwhile, why not follow your instincts and test it? But find a way to do it in a low-risk (low cost) way. Doug Hall* best described it as "make a little, sell a little, learn a lot".

Practical first-hand knowledge of your intended market will always be the best information you can get. So if it's practical, test your idea by doing it in a small way to get a sample of market reaction.

Assemble your research and write this up into a business feasibility analysis, and then get it reviewed by someone you trust to give you an objective opinion. If you've done your ground-work thoroughly, the answers will almost be self-evident. If the answer is "no" - go back to Step 1.

STEP 3: PLAN
If your idea has survived the feasibility analysis, you will have in your hands the raw material for writing a business plan. Your business plan adds the logistical detail, describing the means and time frame of your proposed business, and covering all the important bases.

If you have sufficient capital, your business plan is primarily for you and your staff, and should provide strong justification for the cost of starting your own business.

If you are looking to raise funds, the plan should present persuasive reasons for your potential funder to cut loose the cash.

STEP 4: EXECUTION
Your business plan includes an action plan, time lines, milestones and benchmark performance indicators for your new business.

Your action plan must include review dates, to periodically assess your progress, and revise the plan if necessary. (Tip: It it always necessary!)

For starting your own business, a detailed business startup checklist can help keep track of the detail.

*Doug Hall, best-selling author of "Jump Start Your Business Brain" - Brain Brew Books 2001