Turning an Idea Into a Business

23 Jun 2010

As recently featured on Newbusiness.co.uk:

New business owners need help and support from family and friends, to have a grasp of social marketing and to know their numbers when going for investment, writes Paul Morris, managing director of Addmaster.

Have you got an idea? You know, the idea? The one you've been hoping for, the one that will make you rich, or famous, or, at least, let you be your own boss and make some money doing what you love.

You may well have a great idea, but that's just the beginning. Unless you're lucky enough to have some financial muscle behind you, or to get onto Dragons' Den, you've got a long way to go before you can turn your vision into a reality and even longer before you make some money from it. It's going to be hard, but don't worry - you've done the hardest bit. You'll just need some perseverance.

Raising money

This can be a frustrating process at the best of times. Although banks all claim to be lending to small companies, the reality is often a lot of red tape and time before you can get a decision, and the decision is often a ‘no'. It's worth checking out if there is any funding available to you. If yours is a tech start-up you will find a lot of support, as well as dedicated premises and hubs from which to work. Depending on your status and location, Business Link should be able to advise on funding. However, if you don't qualify, don't panic. Look around for Angel Investor events or venture capitalists that have an interest in your particular field.

You'll have to get the pitch just right, so make sure you know your stuff. But it may be worth, before exploring these options, looking a little closer to home. I started my business with a £5,000 loan from a grandparent, and many new entrepreneurs are finding that family are all too willing to help. The added bonus of this is that they are unlikely to charge interest, will be patient when it comes to repayment and, best of all, there's no red tape.

Get support

Ok, so maybe you've jacked in the day job to follow your dream. Whether this is the case or not, one thing I can tell you is that it's going to be hard. You need the support of those around you. Friends, partners and families are often crucial in keeping us going through those tough times when you have to live off two-forones at the supermarket or buy 2nd hand baby clothes and you want to throw in the towel. It's important that you realise that they're there for you. But they can also help in a more practical way: families bring to table a range of skills and may be able to help with a range of tasks like bookkeeping or administration which will save you having to outsource this elsewhere at a greater cost.

Keep overheads low

Don't run before you can walk. Sure, it would be nice to have an airy, modern office with a loyal team of staff to greet you as you walk in in the mornings. But the formative years of entrepreneurship are always plagued by risks and uncertainty. So hedge your bets by keeping overheads low. We have been going for over ten years now, and still only have a handful of staff. Outsource all you can, get subcontractors to do what you can't take on and work in the box room for as long as you can pull it off! You might hate it now, but it will all seem worth it in the long run.

Marketing

Don't think that, just because you have a great idea, and maybe a website, the business is going to come flying in. You need to make people aware. Fortunately, there are a number of ways you can do this yourself, with out any outlay to costly external agencies. Social media is a great and totally free way to communicate with your target market. Get blogging and tweeting and you'll soon create a buzz.
Make sure you get out into the real world as well, attending events in your area to raise your personal profile, and try speaking to journalists from business magazines in your sector to see if they can put together some editorial for you. For somebody just starting out, I think you'll usually find them quote helpful, so don't be afraid to pick up the phone.

Source - Addmaster, June 2010

http://www.newbusiness.co.uk/articles/starting-a-business/turning-idea-a-business

Addmaster is Europe's leading supplier of performance additives for a wide range of applications and industries. By working in partnership with its customers and focussing on research and development, highly innovative additives have been created and successfully introduced into many manufacturing environments. Addmaster's advanced products are being used by many of the world's industry leaders in the plastics, paper, paint, textile and coating industries.Addmaster, founded in the year 2000, sees its major objective as capitalising on the lack of innovation which exists in these industry sectors, and has won many business awards for innovations in product development and marketing.

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