NCGE: Understand your product before developing your business

Entrepreneurs should have a good understanding of the product or service they are trying to sell before they develop a business plan, according to the National Council for Graduate Entrepreneurship (NCGE).

NCGE chief executive Ian Robertson claims there are a number of factors entrepreneurs must consider before starting a business, such as whether their idea is capable of sustaining a profitable business.

"You need to understand your channels to market - who will buy what you have, how are you going to meet them and how are you going to make what you have attractive. You need to thoroughly understand what competition you have," he comments.

He adds that financial circumstances should not prevent an entrepreneur from starting a business - as there will "always" be money available for good ideas and products.

According to NCGE statistics, around 70 per cent of the UK's fastest growing firms were founded by graduates.