Starting your own business is incredibly exciting. Freedom, no boss, job satisfaction, potential financial gain and no commute if you do it from the comfort of your home. Sounds pretty good, doesn’t it? Stop just dreaming about it and take the plunge.

The Australian economy is doing well. Growth is expected to accelerate later this year and we’ve pretty much got full employment. That means people have money to spend.

The key to small business success is research and planning. Before you rush to quit your day job you have to work out whether you’ve got a shot at making money.

Step 1: Come up with an idea

Dreaming up a good business idea is often the biggest challenge. Think about what you’re good at, what you like doing, and what the market needs.

If you have a particular hobby you are passionate about, why not try and develop a business around it. If you love cooking, have you thought about a catering business? If you are a keen swimmer, what about running lessons in your area? If fashion’s your thing you could design and produce your own t-shirts.

If you want to work from home, look into starting an eBay business. It’s a really cheap way to distribute your products to millions of customers. You don’t have the cost of running a shop or your own website and can do it from your study or garage.

Step 2: Do your research

You have to work out if your business idea is feasible before you jump in. Who’s your market? Do they need your product or service? Who are your competitors and what are they offering?

Step 3: Crunch the numbers

Estimate how much it will cost to establish your business and run it month-to-month. Then try and predict when money will start coming in and how much that will be. How many products or hours of service will you have to sell each month to be profitable? Do you have the initial investment to start the business or will you need help from the bank?

Step 4: Write a business plan

A business plan will help you develop a strategy and give you direction. It’s also necessary if you plan to ask the bank for a loan to get started.

Start by explaining what you’re aiming to do and how you’re going to do it. Then go into more detail about how your business will work, what the structure will be, where you will be located, what equipment you’re going to need … that kind of thing. Also describe the industry, your competitors, and what your strategy will be to win customers.

Check out the Kochie’s Business Builders website, at www.smallbusiness.yahoo.com.au, for information and expert advice on starting a small business. The government website www.business.gov.au also helps you plan, start and run your own business.

Step 5: Put your plan into action

If you have got a good business idea that you are passionate about, and the figures add up, have the courage to go for it.

Put together a timetable to start your business, with a deadline for each task. I’m talking about things like registering your business name, applying for an ABN, getting finance from the bank, and officially opening for business.

Try and do as much as possible while you’re still employed, so you’ve got money coming in. When everything’s ready to go, quit your day job and give your business everything you’ve got.