What does it take to succeed in business? The 2nd ingredient : knowledge

I put confidence before knowledge because a person may have the knowledge, and yet lack the confidence to set up their own company

Regarding knowledge, I heard sad stories about people who started a company in a field only because it is profitable, even if they had not the necessary knowledge about it.

So my advice is to try to build your business on an idea you’re knowledgeable about. In general, it is important to have the knowledge about the environement surrounding the businss (market size, laws, suppliers, competitors, etc). This includes knowing your customers, their needs, their preferences, psychological traits. It also includes knowing the suppliers who may turn out to be a source of pressure if they detain power because they are a handful while the clients are numerous. In this regard, I know of a company who stuggles because both its  suppliers and clients are giant companies, so they impose almost everything, from price to payment deadline. For instance, the supplier imposes that the company pays within 7 days, otherwise it will cease the supplies, on the other hand, the client has three months to pay. This gap creates a permanent deficit in the company's cashflow. This kind of unbalanced relationship may drive the business to shut down. Hence, the need to talk to people who are already in the industry, to gain insights about your future position and avoid unpleasant surprises.

In addition to knowing the environement where your company is going to evolve, you should have the technical knowledge about the good or service you intend to put in the market.

If you choose an idea based on engineering, you will eliminate 80% of the potential competitors that have no engineering skills

If you’re an IT engineer and your dad is a legal expert, you'll probably have 95% more chances to succeed than any other competitor if you set up a consulting firm specilized in cyber security.