I've already asked a preliminary question about my business idea to provide a grocery shopping service in my local area.
Now I have more questions:
1. If my customer asks me to purchase alcohol or cigarettes, do I need a liquor licence to do so?
2. Are there alternate methods of payment available other than cash? I am in Australia so I don't notice paying by cheque as being very popular.
3. How do I research the market, ie: find out if people will actually use my service?
4. How do I advertise my service?
5. Can I have a soft-start where I see how my business is received before I make it official?
6. How do I work out how much I should pay myself per hour, and how much I should reinvest into the business?

I think that's all my questions I want answered so far.

So far I am focusing on Christmas shopping for people who don't have time to queue up, shopping for elderly people in the community and buying school supplies for the new school year, so hopefully I can get it all up and running sooner rather than later.

Sorry if I sound really naive!

In answer to your questions:

1 - You said you're in Australia...I'm going to assume that your laws are similar to those here in the US. Generally, businesses only need a liquor license to sell alcohol and not buy alcohol. So, most likely you do not need a liquor license but I would check with your local government. Here, it is the locals that regulate those licenses.

2 - Yes, you can use a wireless terminal to process credit cards. You will need to get a merchant account. You can take a look at some options here: http://www.merchantexpress.com/wireless_credit_card_processing.htm

3 - You can ask them but even if they say yes, there's really no way to know until you start the business. Your best bet is to start small (i.e., don't get a merchant account yet, don't sign contracts and things like that yet). If you start small, then you'll have a lot less invested if things don't work out.

4 - Advertising is a problem for every business. Website, flyers, post cards, sponsoring events, running ads on the radio. You first need to figure out your target market and then figure out where they are. Then advertising to them should be easier.

5 - It's official the minute you start The question is really about how much you're going to invest. Keep in mind that it does take money to make money. You will need to put up flyers or do some sort of marketing to advise people about your services. You should get a website so people can learn about the services you offer, your fees, your schedule, and so forth.

6 - The owner gets paid last. Your money should go back into promoting the business as much as possible. For a while, you should be paying yourself only if you must. Everything else should be put back into the business.

Best of luck!
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A couple of thoughts - if you don't feel comfortable purchasing alcohol or cigarettes, then tell your clients that you do not purchase those items. You make the rules for the business, so you can exclude or include what you want.

You might contact senior citizens centers in your area and drop off flyers or ask if you can visit and speak to the attendees. Most centers offer lunch several times a week, so that is a good time to reach a captive group. Once they meet you, you should get some orders.