Business Idea

The first thing you need to get clear on is your business idea and completing a business plan is a really good way to help you consolidate your ideas in to one document that can then be reviewed and updated accordingly. It will also help you keep focused on what you need to do and when, and hopefully keep you on track to bring your idea in to fruition.
Also a business plan is an absolute must if you are going to be applying for funding, or if you are going to need help from a third party. You can download a blank copy of our business plan template from our resources page.
As a start to setting out your idea there are 3 keys things you need to think about first, 1- your niche, 2 - your USP and 3 - who your ideal client is. Once you know the answer to these 3 things it should make it nice an easy to set out the rest of your business idea on what products and services you are going to offer you ideal client and also make it nice and easy to plan your marketing campaigns.
Also a business plan is an absolute must if you are going to be applying for funding, or if you are going to need help from a third party. You can download a blank copy of our business plan template from our resources page.
As a start to setting out your idea there are 3 keys things you need to think about first, 1- your niche, 2 - your USP and 3 - who your ideal client is. Once you know the answer to these 3 things it should make it nice an easy to set out the rest of your business idea on what products and services you are going to offer you ideal client and also make it nice and easy to plan your marketing campaigns.

Working out your niche
Businesses that are in a specific niche firstly earn more money on average than a non-niche business and secondly find it easier to market themselves as they have a very defined target market to aim at.
In the business world there are many, many business owners that can offer their services to many different sectors, but initially while you are getting established and making a name for yourself if you specialise in one area this will stand you in good stead for growing your business quickly and effectively. I am not saying don’t take on clients in associated areas, but your marketing needs to be focused on your specialised area until you are known for that, and have a full book of clients, you can then branch out to become more generalised once you are established.
The main reason for ‘Niching’ is because your marketing messages will get lost if they are too general to start with as you will not have a captured audience to see them. If your marketing messages are specific to your niche, then you will stand out above your competition and it will be easier to get your first clients.
Think about your business idea:
By answering the above two questions you should be able to define your Niche area, we will go on to define your exact ideal client later in this section.
Ultimately by having a niche, you will become known as the ‘Expert’ in your industry, and the go to person for that product/service in that niche.
Businesses that are in a specific niche firstly earn more money on average than a non-niche business and secondly find it easier to market themselves as they have a very defined target market to aim at.
In the business world there are many, many business owners that can offer their services to many different sectors, but initially while you are getting established and making a name for yourself if you specialise in one area this will stand you in good stead for growing your business quickly and effectively. I am not saying don’t take on clients in associated areas, but your marketing needs to be focused on your specialised area until you are known for that, and have a full book of clients, you can then branch out to become more generalised once you are established.
The main reason for ‘Niching’ is because your marketing messages will get lost if they are too general to start with as you will not have a captured audience to see them. If your marketing messages are specific to your niche, then you will stand out above your competition and it will be easier to get your first clients.
Think about your business idea:
- What industry are you in?
- Who specifically would you like to help?
By answering the above two questions you should be able to define your Niche area, we will go on to define your exact ideal client later in this section.
Ultimately by having a niche, you will become known as the ‘Expert’ in your industry, and the go to person for that product/service in that niche.

What is your USP?
Once you know your Niche you then need to work out what your USP is. This is your ‘unique selling point’, it is what sets you out from the competition, what makes you special, and what makes your customers choose YOU over someone else offering the same product or service.
Here is an example of a USP for an accountancy firm. All accountancy firms will offer year end accounts and tax as their main services so what makes one more unique than another?
One USP could be that they offer fixed fees that can be paid monthly over 12 months, so that the client does not get a large bill that needs to be paid all at once in one big lump sum. Of course, this is only a USP if most other accountancy practices don’t offer fixed fees.
Another USP could be they are the only XERO gold partner in their area, or they are an award-winning accountancy practice.
Once you know your Niche you then need to work out what your USP is. This is your ‘unique selling point’, it is what sets you out from the competition, what makes you special, and what makes your customers choose YOU over someone else offering the same product or service.
Here is an example of a USP for an accountancy firm. All accountancy firms will offer year end accounts and tax as their main services so what makes one more unique than another?
One USP could be that they offer fixed fees that can be paid monthly over 12 months, so that the client does not get a large bill that needs to be paid all at once in one big lump sum. Of course, this is only a USP if most other accountancy practices don’t offer fixed fees.
Another USP could be they are the only XERO gold partner in their area, or they are an award-winning accountancy practice.

Who is your target customer/ideal client?
You know what Niche you are operating in, and know your USP, the next step is to be able to define your specific target customer, or ‘Ideal Client’.
By getting specific on who your ideal client is, you will be able to put together effective marketing campaigns, as you can have that person in mind when you are creating your marketing content.
To define your Ideal client, you need to think about who your ideal client is and answer the following questions:
The idea here is to create an avatar of your ideal client and give them a name such as Sarah or John the Managing Director, or the Windsor family, and keep them in mind when putting your marketing campaigns together as you need to create marketing content relevant to them, to appeal to them.
You know what Niche you are operating in, and know your USP, the next step is to be able to define your specific target customer, or ‘Ideal Client’.
By getting specific on who your ideal client is, you will be able to put together effective marketing campaigns, as you can have that person in mind when you are creating your marketing content.
To define your Ideal client, you need to think about who your ideal client is and answer the following questions:
- What age are they?
- What demographic are they, i.e. A.B.C.D?
- What gender are they?
- Do they have children? If so, how many?
- How much do they earn?
- What hobbies do they have?
- Where do they go on holiday?
- What industry do they work in?
- What size of business do they run?
- What car do they drive?
The idea here is to create an avatar of your ideal client and give them a name such as Sarah or John the Managing Director, or the Windsor family, and keep them in mind when putting your marketing campaigns together as you need to create marketing content relevant to them, to appeal to them.

Market Research
Once you have defined your Niche, your USP, and your Ideal client, you can then do some market research to make sure your business idea is viable.
Just because you think your idea is a fabulous one, it doesn’t mean it actually is. I’m not purposefully trying to be negative here I am just giving you a reality check, especially if you are leaving a full time job to set up this new business, but the last thing you want to do is to go all guns blazing and potentially spend thousands of pounds on an idea that isn’t going to be profitable for you, therefore, you need to do some market research to make sure there is a market for your product/service.
Research is so much easier nowadays than it used to be due to the Internet. You can use search engines to find out things like:
Another way to do some research is to get out there and talk to people, for example you could attend a small business networking group or maybe hold a focus group at a local business hub and ask them what they think of your idea. If you ask people you don’t know, you are more likely to get an honest answer rather than just asking family members.
You can also use social media too, nowadays you can easily do online surveys to gather data to see if your idea is viable too.
The Office of National Statistics is also a great place to find some valuable data ( www.ons.gov.uk/ )
Once you have defined your Niche, your USP, and your Ideal client, you can then do some market research to make sure your business idea is viable.
Just because you think your idea is a fabulous one, it doesn’t mean it actually is. I’m not purposefully trying to be negative here I am just giving you a reality check, especially if you are leaving a full time job to set up this new business, but the last thing you want to do is to go all guns blazing and potentially spend thousands of pounds on an idea that isn’t going to be profitable for you, therefore, you need to do some market research to make sure there is a market for your product/service.
Research is so much easier nowadays than it used to be due to the Internet. You can use search engines to find out things like:
- Market reach (How large is your potential market?)
- Is your target market easily within your reach?
- What are the trends? (Are you in an industry that continues to grow?)
- Who are your main competitors (In the local area and UK wide?)
- What are your competitors offering their clients?
- Are there similar products and services already on the market?
Another way to do some research is to get out there and talk to people, for example you could attend a small business networking group or maybe hold a focus group at a local business hub and ask them what they think of your idea. If you ask people you don’t know, you are more likely to get an honest answer rather than just asking family members.
You can also use social media too, nowadays you can easily do online surveys to gather data to see if your idea is viable too.
The Office of National Statistics is also a great place to find some valuable data ( www.ons.gov.uk/ )