The UK’s economy is driven by small to medium enterprise. Similarly, the SME sector is driven by innovation. Identifying a new business concept, invention, product or service can be the result of a perceived gap in the market, a solution to an everyday problem or a passion or interest you feel can be turned into a business. Regardless of what the idea is, you must ensure the project is commercially viable. Before you begin thinking about company formation, it is important to ask yourself a number or questions:
• Is your idea original?
• If you are planning to turn a hobby or interest into a business, you must consider if you have the relevant experience and expertise?
• Does a market exist for your idea? How big is the market, and how will you reach it?
• Do you have competition? If so, who are your competitors and how is their business?
• What are the potential risks and how do you plan to overcome them?
• As a new business idea, how will you encourage investment?
If you can thoroughly research the answers to the above questions and your idea still emerges as original and commercially viable, have a look at the different methods of company formation.