Starting a business: Great idea starts long, winding road

Want to start up a company? Then follow the fortunes of a fictitious Nectarmin in the first of our three-part series.

Thinking up an idea for a small business is the easy part.

Where it becomes difficult is putting that idea into practice and building a strong business that thrives year after year.

To that end, the Herald has created a fictitious entity and will follow its progress through the series.

The business, Nectarmin, is the producer of energy drinks and tablets using natural, local ingredients.

The Herald devised a business plan for Nectarmin and gave it to chartered accountancy and consultancy firm Deloitte for feedback.

Deloitte Growth Solutions partner Greg Anderson says Nectarmin is typical of many small businesses that have an idea for a product but little nous of how to turn it into a sustainable proposition.

Before getting down to the nuts and bolts of forming a company, registering for tax and discussing finances, the Growth Solutions team likes to talk to its client about their reasons for going into business.

Common questions include:

* What business experience do you, the client, have?

* What is your motive for going into business?

* What is your idea of success?

* Are you prepared to work hard and sacrifice your time beyond 40 hours a week?

* How would that affect your lifestyle?

* What is your vision for the business in five years?

* What might prevent it from succeeding?

Anderson said no one should go into business thinking they were going to work fewer hours a week than they did as an employee.

"It's more like 12 hours a day, six or seven days a week to do everything you need to do to run your own business and to grow it and be successful," he says. This is something Anderson is careful to make people aware of up front.

"And, to be honest, the best advice we might be able to give some of these people is forget about it."

In Anderson's view, the most basic questions business hopefuls need to be able to answer precisely are: * What have you got to sell?* Who are you going to sell it to? * How much are you going to be able to get for it?

"If you haven't figured that out, chances of success are a bit like buying a Lotto ticket ... not great."