Nearly three quarters of millennials here plan to be entrepreneurs within 10 years, based on research by website-hosting company GoDaddy.

While running your own business offers flexibility and financial independence, many start-ups fail, so it is essential to plan well for such an enterprise.

There are similarities in how people go about starting up a business effectively, even though every business is different.

Using well-planned practices gives a greater chance of success.

IDENTIFY YOUR BUSINESS AND MARKET

The first step is figuring out the product or service you will offer. From starting a food business or selling clothes to delivering an innovative healthcare solution to cure cancer or selling software to make farmers more efficient, there is no shortage of options. You will need to be clear about what you want to produce and why it is important.       

Essential parts of that product or service development include identifying who will buy it and analysing the competition.

You can only succeed if you have customers, so they are clearly a priority.

For many products, though, consumers already have a trusted brand that they buy all the time.

To convert customers to your product, you will need to offer a much better product or value proposition.

If you are producing a new product in an existing category, figure out why customers would want yours instead of what they already use.

If you plan to create something that does not exist yet, you will need to figure out whether customers really need it and how to explain it.

CHECK OUT THE COMPETITION

Along with looking for customers, analyse the competition to see how much demand there is for what you will produce and who is currently providing something similar.

Just because you have a brilliant idea does not mean that other people haven't also had the same idea.

If there are other start-ups or even big brands in the space, you will need to figure out how to stand out.

If you don’t find any competitors, it is worth analysing whether there are firms in unexpected places or whether few people may need your product. 

It can also help to contact people already in the industry and ask for their advice. While this runs against the inclination of many entrepreneurs, who want to keep their great idea secret, asking an experienced professional you trust for their input can be beneficial.

GET THE RIGHT PEOPLE

It can be tempting to start up a business on your own. Realistically, though, you will likely need help. Sooner or later, most start-ups at least have people handling product development, marketing and communications, business development, technology and other parts of the enterprise. 

One of the key factors that investors consider when they evaluate a new business is the team, so you will need a strong team with the right skills both to succeed and to get funding. Look for compatible people with expertise that will help you thrive. 

Technology is a key part of any business these days, so you will especially need to focus on bringing in the right people to develop leading-edge technology.

Whether you just need simple support for social media or want heavy-duty coding for a technology-first innovation, the right technical support is critical.

Along with getting manpower to help grow the business, successful start-ups often tap one of the many incubators here to get advice, mentoring, training and sometimes even funding. Founders can look online for incubators and for accelerators when they need help to grow their venture.

The Startup SG network, backed by trade agency Enterprise Singapore, also has lists of incubators and accelerators. 

FIND FUNDING

Even start-ups operating on a shoestring will eventually need money. 

The first place to look for funds is often family and friends.

If they cannot provide enough, consider expanding the search to include angel investors or even venture capitalists.

Whichever route you choose, it will help to have a 30-second “elevator pitch” to explain your business quickly and a PowerPoint deck to explain it in more detail as well as to ask for funds. 

There are still a variety of grants for start-ups available here, although it can be difficult to apply for them.

Startup SG Founder provides up to S$30,000, for instance, by matching S$3 to every $1 raised by the start-up. 

DECIDE ON WHEN TO START

Once the pieces are in place, you can decide when to start your business.

If you already have a job, you may want to continue working for a while. It can take months to launch a new business and even longer to succeed, so having an income can be beneficial.

That said, many entrepreneurs quit their job to focus on a business they believe in, since they feel they won’t succeed unless they focus entirely on their start-up.

Make sure you are starting the business to pursue a passion and deliver something meaningful, too, since starting a company to exit a bad situation at work or just trying something that sounds interesting has a lower chance of success.

Once you have an idea and want to launch it, then leveraging practices such as those mentioned above can help start you out right.

Launching a new business is always a risk. Planning well and finding a mentor or incubator, then pursuing your goal with passion can put you on the path to success.