Setting up any new business can be a daunting prospect and the most important thing you can do to give it the highest chance of succeeding is to have a solid and well-thought-out business plan. There are few second chances in business and if your new venture is not built on a solid plan it is unlikely that you will have a second chance to rebuild your reputation.
Most banks and other lending facilities will insist on a rock-solid business plan to even consider lending any money. They are especially careful since the global economic crisis and will not make loans against businesses which are not based on planning and research.
You need to calculate set up costs in detail and the initial level of investment needed to get the business going. You also need to calculate your minimum required earnings in the initial period of one to two years, although it is better if you can manage without taking a wage at first.
Against that you need to predict expected earnings which can be difficult but it is necessary to be able to forecast the cash-flow over a two to three year period. If you cannot forecast earnings this will indicate to the bank that you have not researched it adequately.
Even the best business plan cannot make your business succeed; it is only a factor, but a significant one.