Considerations when Starting a Business
Lets face it, we all have that business Idea that is just waiting on the right moment to make your fortune. Have you ever heard someone say, "I came up with that idea first, if only I had done it I would be rich now"
Regardless of the idea, there is a great deal of work in getting any business off the ground and unless you have the drive to do it, then you need more than just an idea.
A great idea can fail just as easily as a bad idea, its you that makes the difference, and we often over estimate our own level of commitment and under estimate the work involved.
Things to consider
Im sure you have heard it all before:
- Start your own business and start making money for yourself not the man.
- Work for yourself and be in control of what you do and when.
- If you have your own business you can make thousands of dollars if you learn how to do it.
- Think about the guy who invented the drink umbrella, he is raking it in,
I will do the same.
Well there is a little bit more to it than getting a business name,
setting up and account and start working. Firstly and probably the most important
thing you need is passion. Quite simply this isnt something you can fake, or
force yourself to do.
Sure for the first few months you can push yourself
to get out of bed and get going, but after a year of struggling with all of
the unexpected tasks, late nights, unrewarding unpaid work, and additional
costs that you never knew existed, can you still keep it up?
Studies and Stats:
"According to the Australian Bureau of Statistics, more than 60 percent of small
operating within the first three years of starting"
"Many thousands of small business owners might be entrepreneurial by nature
and find themselves getting carried away with the romance of owning
their own business"
"There's an Australian attitude of, 'Running a business -- how hard can that be?'"
Reference: Huffington post
So what should I do?
It boils down to passion and drive to continue,
if you are going to start your own business then there are a few key points that
you have to know and fully understand:You will most likely not make real
profit in the first year.
If you are full time employed right now and
you want to quit and start a business but cover the income you currently have,
there is a chance you will fail unless you have a way of handling this.Dealing with right and wrong is
not that simple
The customer is correct (in the majority of situations),
because if they are in your opinion not correct, then it is commonly because
terms and conditions where not explained well enough from the start. Regardless you have to
factor this in, and work with your customers. If you are very good at what you do,
then your customers will not want to loose you.Go the extra mile
I hear from so many business start ups how they
are going to provide their
service, "this will be the price and this is what they get"
, full stop.
Unfortunately this will not work, unless you have a product or service that a
client cannot get anywhere else, (and even in that situation you will be loosing revenue).
In short, business is so competitive (most so than ever before), you have to make sure you are
offering something that provides real value for money that stands out. Most of
all you have to make sure your customers want to recommend you and come back,
so remember every client is a person with a story and needs,
understand it and help them as much as you can.Prepare to work for free
Yes thats right, the sheer
amount of work that is required to just keep your business going is a major overhead.
Your accounting, advertising,
marketing, staff, customer enquiries, Estimates, Quotes, and the list goes on.
You will not be paid for this,
you will be working late into the night to get it done, this is the nature of owning a business
today, its not easy at all.Strategies and Planning
Be realistic, the glass half full approach could
leave you in grief, by all means be positive, but be realistic as well.
Before you start your business, do your
homework, check that a need exists for your service or product that will support you.
What about the area?
Will it support your business
or do you have to travel?
Can you get by with little income until you business is working properly?
Any money you
use and invest during the start up will take some time before its returned by profits.Personalities
Are you a happy person and like talking to people?
If not, employ someone who is or get a partner or spouse in your
business with you that is. This is very important, a great many people who are really good at
what they do, are not great with customer relations.
Make sure you have a person with you who is, this makes the
difference as people what to talk with someone who is personable and able to communicate well.Process
With your business processs make sure they are flexible and cater for potential exceptions.
If you are selling something make sure you have a process to deal with warranty, have the wording and procedures
ready to go, advertise it to your customers and be ready to cater for situations that will not be standard.
Make sure your clients will be satisfied with the end result.Be Realistic
There are hundreds of people already selling products and services, many of these have marketing teams, graphic artists
and business strategists working to make it viable. This does not mean you cannot do it, it just means
you have to be realistic, plan it out, come up with complementary products, find out what your customers actually
want, and offer something unique that makes you standout.