Entrepreneurs must ask the right questions

In the first of a series on the challenges of starting up a business, Rosie Allsopp looks into keeping the dragons happy ANYONE who has watched Dragons' Den on BBC TV will know that getting the right advice before starting a business venture could make the difference between failure and success.

Peter Walters, of the Enterprise Agency, said entrepreneurial spirit was strong in Guernsey and many islanders chose this time of year to start their own business.

'For Dragons' Den viewers who regularly see budding entrepreneurs squirm and melt in front of the dragons' fiery tongues, if only they had been better prepared for the onslaught to come,' he said.

Over the next few weeks the Guernsey Press will look at 10 challenges associated with starting a business and, with advice from the agency, try to take the sting out of taking the plunge.

'Ensure that your dragons, be they potential lenders or investors, say, ?I'm in?, rather than, ?I'm out?,' said Mr Walters.

The idea stage is often the perfect time to seek advice from the agency, he added.

'This is, in fact, the best time to come and talk to the Enterprise Agency. It is vitally important that the idea to start a business is sufficiently attractive to warrant all the time and expense someone might be about to commit to the idea and make it happen.'

So far this year the agency's four advisers have met 240 people. More than 160 sought advice on starting a business and 76 were in existing ones.

Mr Walters said it was difficult to pinpoint exactly how many of those who sought advice went on to start their own company as not all reported back.

'I would think that in excess of 60% decide to test the water. We are as proud of the ones we dissuade from taking the plunge, where we realise the risk-reward ratio is too great. This is particularly so where mortgages, homes and children are part of the equation.'

Mr Walters said key questions any potential businessperson should ask themselves were:

n what is the product or service on offer, who will buy it and how much will it cost?

n consider the vision of the business: what will it look like in three years' time, will it be sold in future, how will any borrowing be repaid?

n who will run it, what qualities will they need and do they have the energy, enthusiasm and commitment to make it happen.

'If someone thinking of starting their own business is still on track, they would need to establish if it is the right time and place for their idea to come to fruition. They would need to ask themselves if Guernsey is the best place, is the market here big enough, whether their idea is best suited to them and who else they would need to involve.'

It was also worth considering whether to take on a franchise, buy an existing business or conduct a buyout, Mr Walters said.

* Anyone seriously thinking these issues over should contact the agency on 710043 for free advice or visit www.guernseyenterprise agency. com