Running a firm is not for everyone. You should ask yourself whether you are the kind of person who can face risks and challenges without undue worry. Do you persevere when things go wrong, and do you have the ability to put them right? Is your health, strength and stamina up to the demands of working long hours?

Take your family's needs into consideration. It is a big benefit if they are willing to help and support you.

If you are convinced you have the necessary sticking power to make a go of it, you should then investigate the market. You must be sure clients or customers will want the product or service you have to offer.

Do an initial survey to find out about potential customers and competition. The importance of good market research cannot be overestimated.

Find out, as accurately as you can, who your customers might be. Do they fit into a specific age, sex or social group?

Then, make a list of your competitors and think about their strengths and weaknesses.

How does your product or service compare with what your competitors offer, particularly in respect of price, quality, delivery and service.

Another area for careful investigation is where you will buy stock or raw materials. Look at the strengths and weaknesses of your suppliers.

There are many resources to help you do your research. You can collect a lot of information about an area from a local library. Newspaper advertisements and telephone directories can give you an idea of your competitors.

But active research is as important as deskwork. If you want to know who competitors are selling to, go and watch their customers buy from them!

Talk to people about your idea. Friends, relatives, potential customers and specialists will give you different perspectives.

There are also a lot of organisations aimed at advising people who want to start a firm. A glance through the pages of inbusiness should give you the details of one near you.