Planning Tips: Options for Entrepreneurs*
The Environment
In assessing the environment thoroughly and considering the
broader context and the impact that trends may have on it, there are three main ones to
look at:

global;

national;

and local.
However, to gain a more in-depth understanding of global changes from a business
opportunity perspective, websites such as Trendwatching (www.trendwatching.com) and
Springwise (www.springwise.com) are useful.
What works well in one market can easily transplant into other ones with the minimum of
localisation. Between them, these sites give more insight into some of the latest emergent
business ideas and can be considered together with trends such as climate change, cost
of oil, volatile currencies, etc.
There are a number of national trends in the UK: increased broadband access; an ageing
population; increased expected life spans; growth in the number of single person
households, etc. The key with all of these trends is to focus on the opportunities
associated with these demographic shifts and trends. We can predict that an ageing
population will increase the demand for certain goods and services, such as home-help
services, medication, nursing, and glasses. The growth in single-person households will
increase the demand for convenience food products and more economical smaller white
goods.
There are also numerous resources we can use in assessing the local environment and,
in particular, the likely demand for our goods or services. Websites such as ACORN
(www.caci.co.uk/acorn) and UpMyStreet (www.upmystreet.com) provide extensive free
demographic data about areas based on UK postcodes.
These enable you to build up profiles of the local population and are ideal when you are
looking to set up a shop or service to serve the local community specifically. Of course
when it comes to local opportunities, these need to be assessed in conjunction with
plenty of 'on-the-ground' research: walking in and around the area targeted for your new
enterprise.
© Coventry and Warwickshire Reinvestment Trust 2013/14
Planning Tips: Options for Entrepreneurs
Keep up to date with global developments; The Economist or the BBC gives you a good
base to start from.
Options
The Big Idea
Whilst the majority of new businesses are replicas of existing
businesses, some entrepreneurs will strive to create something
completely unique. One of the most powerful things the Internet
enables us to do is to search for solutions to problems more efficiently than ever before.
Goods and services are designed to fulfill the needs of people. While your proposed
solution may be unique, it is likely that the need is not. Hence, an Internet search focusing
on the need that your solution is trying to address is likely to highlight substitutes and
competitors, which all help to shape your idea.
*Based on an article by Alan Gleeson, Managing Director of Palo Alto Software, Ltd.,
creators of Business Plan Pro® 2006. He holds an MBA from Oxford University and an
MSc from University College, Cork, Ireland.
You must research so you are familiar with some of the key issues. You can search for
sample plans from similar ideas on www.bplans.co.uk or look at Business Opportunity
Profiles from Cobweb at www.scavenger.net to help you understand your specific
business. Back up online research with face-to-face conversations with potential
customers and other business owners. An extensive search of Google ensures that your
market research is up to date.
'Bricks to Clicks' Model
Providing you can configure your business accordingly, there are opportunities to undercut
the traditional giants. An online store can take the place of the high street store in many
instances and offer the same product or service at a much more competitive price.
Glasses Direct (www.glassesdirect.com) is an example, where entrepreneur James
Murray Wells set up his own online optician. Without the overheads of Specsavers,
Glasses Direct is able to undercut the standard retail prices while still being very profitable.
Branch Out Strategy
Branching out are how many people start up. After spending a number of years in a
particular industry or firm, you decide to go it alone. This is undoubtedly a sensible
strategy, particularly as you are a subject matter expert who understands the market and
you may have an existing base of clients who will follow you to your new company.
© Coventry and Warwickshire Reinvestment Trust 2013/14
Planning Tips: Options for Entrepreneurs
Using the Internet, you can often assess the potential demand for your service by gauging
the number of people who search for a term related to the problem that your product or
service satisfies. By analysing the search terms for your idea, you can assess potential
market demand, get ideas for appropriate names for your product or service, and use the
findings as one reference point in your analysis. If you intend to set up a local service, then
familiarity with the local area is as powerful a resource as any Internet search method.
Entrepreneurs don't necessarily have to be inventors, but people who can spot
opportunities to do something better or more cheaply than others, or provide a local
version of a business run elsewhere.
Acquisition
Another option is acquiring an existing business http://uk.businessesforsale.com has a database of thousands of
businesses that are for sale. While not a low-cost method of going it
alone, the business will already be trading and with a record of how it
is performing and whether there is room for improvement. Acquiring a business is best
left to the more experienced entrepreneur who has a team in place looking for
undervalued businesses with strong growth potential.
Franchise
Add On
By observing successful products and growing trends you can piggyback on the
successes of others at very low cost. One new product can create a many opportunities
for ancillary products and services that make using the core product better.
Business Plan
Your next challenge is to create a business plan. This is a very important part of the startup or growth process as it forces you to consider the opportunity in detail. You need to
think about everything from sourcing raw materials, to competitor analysis, to pricing, to
distribution.
If you are replicating an existing business, the scale of research required is not as
rigorous, as there will be some existing players that you can study. If completely
pioneering an idea, your task will be more difficult. Regardless, a plan will force you to
do a thorough analysis of a range of issues.
There are extensive resources available at www.bplans.co.uk to help or you can
download CWRT’s Business Plan template in the Resource Centre templates section.
Implementation
Finally, you must put your plan into action; perhaps to secure funds, or communicate an
idea more widely. Create a small team with clearly defined roles, and undertake the
details of starting up, such as legal obligations, red tape, etc.
The key to a successful start-up is to prepare a robust business plan and get a solid team
in place to put it into action. While the odds are stacked against all start-ups, you can
improve your chances by carefully managing certain key areas.
Cash flow is your lifeblood, and you must guard against the dangers of insolvency by
careful forecasting and appropriate financing. Don't over-estimate demand for your product
or service. That vital characteristic of all entrepreneurs, 'excessive optimism " needs to be
reined in!
© Coventry and Warwickshire Reinvestment Trust 2013/14
Planning Tips: Options for Entrepreneurs
Franchising is a popular route but it requires that you have capital to invest and are looking
to introduce an existing 'winning formula' into your own area. There are a number of
franchise magazines and websites (www.whichfranchise.com, www.createproject.org.uk).