Enthusiasm is not enough, reports Tony McDonough

YOU may be bursting with energy and enthusiasm, be full of great ideas and have mastered the skills of your trade, but starting your own business is still a huge risk.

There is a high failure rate among new businesses and taking a bit more time and seeking proper advice at the outset can save you a lot a lot of upset in the long run.

Paula McGrath and Jonathan Brown know this only too well. Ms McGrath, a partner in the Liverpool office of accountants PKF, and Mr Brown, also a partner, at law firm Halliwells, are well aware of the pitfalls.

“Virtually every day, I’m approached by people keen to set up their own business. Most need help to secure funding from a bank,” said Ms McGrath.

“To do this, they need a business plan. I have seen hundreds of them – some are good but many are very poorly prepared and don’t actually make any sense. Harsh but true.

“It is essential you give a lot of thought to your business plan and succinctly provide the right type of information to enable your would-be lender to make an informed decision with ease.”

“In a nutshell, put yourself in your banker’s shoes. Imagine you are considering the business plan.

“The ones which stand out from the crowd are those that are accurate, focused, realistic and above all, make sense.

“If the plan makes sense, you should be able to borrow what you require from your bank.”

Mr Brown added: “Although business start-ups in general have a high failure rate, such a high failure rate is caused by genuine new idea business start-ups.

“Situations where a person who works for a large company employed in a certain manner leaves to set up their own company doing exactly the same is not really a true business start up.

“The success rate of such ventures is higher than genuine new idea business start-ups." Below, Mr Brown gives his 10 top tips for starting a business, and Ms McGrath lists the dos and don’ts of putting together a business plan.

tonymcdonough