Starting a business can be an extremely daunting step. Fortunately, a huge amount of free help and advice is available, both face-to-face and online. More focuse, specialist help is also accessible for a fee. Here is Times Money's beginner's guide.

Have an idea

A good idea is the bedrock of any business. This need not be original - a straightforward cafe or corner shop might be more lucrative than a rickshaw dealership or kosher kebab shop.

The internet means that a successful, low-overhead business can be started from your bedroom, selling from websites such as eBay.co.uk and SetYourRate.com. Click here for some ideas on making money online.

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BACKGROUND

• How to complain

• How to protect your PC

• How to start a business

• How to shop around

• Your redundancy rights

Do your research

It is critical that there is demand for whatever product or service you decide to sell. To check this, speak to people - friends and family as well as the target market - and look at how similar ventures are performing. Be aware that If you develop a new product or invention, you may want to protect it first, using patents, trademarks, copyright or domain names.

Either way, advisers from the Government's free Business Link network and the National Federation of Enterprise Agencies (NFEA) can offer free and confidential advice on how to go ahead. The Business Link website also has articles that can help, as do Startups.co.uk, Makeyourmark.org.uk and www.fsb.org.uk, the website of the Federation of Small Businesses.

Make a business plan

Advisers at your local Business Link or enterprise agency can also help you to draw up a business plan. Specialist software, such as Palo Alto's Business Plan Pro, can help you to prepare a slick document, but should be used with advice. A sound business plan is essential when you come to pitch for finance and is worth spending time on.

Find funding

You will need money to start any business. Check Business Link's grants and support directory before raiding savings or taking on debt. If you are not eligible for help, speak to a free adviser and your bank manager. Where possible, it is also worth speaking to a business consultant or accountant. One interesting option is angel funding, where an investor or group of investors offers cash for a significant stake of your business, Dragons' Den-style. Venture capital usually comes later, once the business is off the ground and worth hundreds of thousands of pounds.

Take advice

Help from Business Link and other free advisers is invaluable and should be taken before investing thousands of pounds on specialist help. Once you have established that an idea is worth pursuing, however, business consultants, accountants and lawyers can offer the next level of time and expertise. Reliable professionals can be located through Business Link and the Law Society website at lawsociety.org.uk. It may be worth taking legal advice on the form that your business will take, such as a sole trader or limited liability partnership (LLP). Software programmes, such as Sage, can help with annual accounts.

Pay tax

Tax may seem like a minefield, but it should be straightforward. Check the links on the Revenue's website here for advice on setting up as self-employed and registering for VAT.

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Five features

Inspirational ideas have to fit

Start up with a grant

Where to go for capital and guidance

How to write a business plan

Keep the cash flowing

Five websites:

Times Online's small business pages

Business Link

Federation of Small Businesses (FSB)

National Federation of Enterprise Agencies (NFEA)

HM Revenue & Customs