Once you have an idea, you will need a place from which to work, and often this may be your home. You will need a special workplace in or alongside the house. The best home-office is either a study or an outside room with its own entrance, especially if clients will be visiting your office. The home-office should also be secure, with a door that can be locked so that all your paperwork , documents, stock or manufactured goods can be kept safely.

You will also need money. Even the simplest businesses, such as selling home-cooked food, taking in washing, household repairs or offering hairdressing services, require some form of start up capital. Avoid using your or household money to finance your business on an ongoing basis. Rather start a new bank account with a separate sum of money and keep good financial records.

Give your business a name so that it has a different identity from yourself, even if you are the only person involved in the business. This creates a professional impression. You will also have to market your business, so that customers get to know about it. To do this you may need a pamphlet or poster and you will have to advertise and go and see potential customers.

How to cost your ideas

The money you charge will not all be profit. You will have expenses that must be properly out so you can decide whether or not your idea will work.

When you price the product or service you must build in an amount for your own labour and to cover a share of the rent or bond for the space that the business is using, plus the electricity, water and telephone. Work out these costs in a realistic way, otherwise you will never know whether or not your business will be worth the time and money you will spend on it.

Calculate the fixed costs as follows. Measure the total floor space in your house, as well as the space you will use for the business. For instance, if the rent or the bond is R500 a month for a 50m2 house, and your business will be taking up a 7.5m2 space, then the cost to the business should be R75 a month. Estimate a share of the electricity, water and telephone bills, adding whatever extra amount you think the business activity will add. If you want to start a laundry from home, these costs will be high, whereas if you offer an accounting service, they will be much lower. For your own costs, decide what you think your time is worth per hour and then cost it into your product or service.

Other costs, which are harder to predict, include the costs of material, travel and advertising or marketing.

Once you have an idea, the next step is to draw up a business plan that gives a detailed plan of your idea. This will help you decide if it will work and is very important if you are looking for finance from a bank to help you get started. Your business plan should include the details about yourself, the type of business you plan to operate, the type of client you plan to attract, the projected cash flow, possible problems and budget predictions and an analysis of your financial requirements.

Your business plan will tell you more or less how much money you will need to start your business and keep it going until your first customers start paying you. There are various ways of accessing capital.

Shares in your business can be offered to members of your family. Your bank manager may also lend you money, but will need to consider your business plan. The small business units of various banks offer different types of loan programmes but they too, will need a business plan.