WEEK EIGHT:You don't have to sit around waiting for a eureka moment to get started in business, writes CAROLINE MADDEN

‘GO FOR it.” That’s the key piece of advice Steve Thompson, who runs business training courses with Quality Education Development International, has for aspiring entrepreneurs. “Out of all the entrepreneurs I’ve worked with, trained and interviewed, I’ve only ever come across one who regretted giving it a go.”

Of course, “giving it a go” is easier said than done. First you’ve got to come up with a business idea – and a good one at that. However, you don’t have to sit around waiting for your eureka moment to strike. According to Thompson, there are plenty of ways to kick-start the ideas-generation process.

A good starting point is to think about what the market wants: “What problems are people having? What are their needs? What are the current trends in Ireland and abroad?”

Thomson says great business ideas come from really understanding people’s priorities. “Once you have identified a significant problem or need, then, and only then, get creative about how to capitalise on it,” he says.

“It’s easier when you have a specific need or problem in mind.”

Most people make the mistake of trying to get creative first, he adds. “Our advice is to only get creative after you really understand the demand.”

If you are still struggling to come up with an idea, try brainstorming, combining old ideas in new ways or reversing the problem, he suggests.

Thompson also warns against “falling in love” with your idea too soon. You may believe passionately that your product or service is the best invention since the iPod but, if there is little demand for what you are trying to sell, you have to be unemotional about it and switch direction.

“It’s not enough that people just like what you’re offering,” he says. “Make sure that they’ll pay for it.”

In the experience of Michael Culligan of the Business Innovation Centres network, the startup companies most likely to succeed are those that “respect the market”. This means balancing entrepreneurial drive and a never-say-die attitude with an ability to remain “grounded in reality”.

“All business must be marketing-centric,” Culligan says.

By this he means that entrepreneurs must ask themselves what opportunities exist in the market, whether those opportunities are scalable, who else is competing there, and whether their business will have a competitive advantage.

“One of the things that we would encourage people to do with any product or service is to engage with the market as soon as possible,” he says. “The market is the ultimate arbitrator.”

Once you have tested out your business idea in the market on a trial basis, it is important to use feedback from this experience to refine your offering before trying again. Businesses that take this approach have a better chance of success.

If your business idea turns out to be a viable, successful one, expect to be copied, says Culligan. This means that businesses must be prepared to continue innovating to sustain their initial competitive advantage.

Once you have generated an idea you believe has the potential to deliver a sustainable profit, the next step is to prepare a business plan. Not only is this essential if a startup is seeking funding, but the discipline of drawing up a detailed plan forces entrepreneurs to address hard questions at an early stage, rather than leaping into the unknown without being prepared.

There are several areas where entrepreneurs tend to fall down when drawing up their business plan. For example, they may not have planned their strategy for taking their product or service to market – and creating sales – in sufficient depth.

Another common pitfall is underestimating the level of funding required to get the business off the ground.

Furthermore, people often underestimate the competition that already exists in the marketplace.

One final piece of advice is to surround yourself with experienced people – internally to help manage the business and externally at an advisory level – who will not be surprised or deterred when you hit a few bumps, which is an inevitable part of starting a business.

Watch Tommy Griffith of PEL recycling equipment discuss how his firm took advantage of a growth opportunity in the green economy at irishtimes.com/business/education or on eoy.tv, the dedicated website for the series

Next week:Patent and copyright issues – critical elements of the future knowledge economy