Interaction

Starting a New Business…. So what do I need to consider?

Having just gone through the exercise, it has dawned that advising on this as an accountant really didn’t give me the best insight to the number of challenges faced by a new business owner/operator and the stress that goes along with the process.

Let’s run through some of the major pros and cons and the challenges you face and the rewards that hopefully will be there for you at the end of the line:

Write yourself a business plan you can build on:

Before you set out on the venture into the unknown of your own business, make sure you have one of these laid out and that you can adapt it to your business as it develops, as a stagnant plan will leave you behind the curve. Here are some key areas to focus on:

• A budget and projection of the costs of setup and the first 12 months of operation. This needs to be done on a monthly basis, with a month by month comparison, if possible and the worst and best case scenarios factored in. (If you have Office 2007 or later, there is a great set of templates to use. If not then you can purchase one from here at a low cost)
• Define your target market – define who you want your clients/customers to be and why you have chosen them.
• SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) – look at the market you are entering and consider the current state of the market and what you can offer that stands you apart from the market. This allows you to determine how you should position yourself in a given market.
• Exit strategy – this is perhaps the point most overlooked on the setup of a new business. You need to consider how long you want to be involved with this business? Do you want other owners involved? If an offer comes along, will your business be sale ready?
• Key point of differentiation from the market – what is your businesses unique selling point? What makes your business different from your competitors and the market leader?

These are just some general points that are elaborated on in many business and strategy books available in the business section of your chosen bookstore.

Mentors

Probably the most overlooked, but most crucial step in starting a business is to have a great mentor. That second set of eyes to look at things from a 3^rd party perspective and act as the potential client. Like with most scenarios two heads are better than one and this will stop the urge to stick you head in the sand and simply follow your own thoughts without using anyone as a sounding board.

So, how do you choose a Mentor?

Don’t assume that this person has to be a trusted advisor that you already have appointed. The best mentors usually come from someone who has no knowledge of your particular industry, but like you, is an entrepreneur that has developed a business model.

Where the opportunities were presented to IA, they were taken advantage of. It was/is a special privilege to have had the opportunity to meet with so many successful people, whom, had at one stage or another in their lives been in the same position. Now their industries and generation were all vastly different, but, they spoke from experience, not quoting a text book and experience should never, ever, be discounted. Some of the comments made were as follows:

1. It’s not just about having a fantastic product; you need honesty, integrity and the courage to stand behind that product in the face of adversity. That is what will separate you from your competitors,
2. The best way to grow a successful business is to be able to spend your time working on the business, not in the business.
3. You need to ask, as a consumer, why would I choose your business to represent me? What can you bring to the table that others can’t?

Now all these comments are great. But, in essence they demonstrate that passion, a business like mind, a fabulous product and personal qualities are all great starting points. But each one alone is not enough to get you to the next level. That is achieved by finding a unique balance between them all.

This is easier said then done…… but there’s an old saying, if you find a job you love, you’ll never work a day in your life. I think a more apt comment, is that if you find a business you love, you will never grow weary or tired of it, you will always be looking to be the lead in the industry and your passion will infect those in your organisation and your customers. This in turn with a realistic and honest view of yourself and your businesses performance will enable you to make the right decision and not let things such as pride, get in the way.

So what do I need to do to register a business in Australia?

You need to ensure that you have filed the correct registrations:

• Business/Entity name with the Australian Business Register (ABR), Australian Securities and Investment Commission (ASIC) and the relevant state’s Department of Fair Trade (DFT) if applicable, NSW link here.
• You can click here to see if the business name you want is available.
• Talk to you industry’s body about any requirements they have & use any available IP they can provide you.

Lasting idea……

Have a unique idea you are passionate about and always remember to keep that idea fluid and not stagnant. If you are unable to develop and reinvent yourself, then ultimately your time at the top is limited by the time it takes a competitor to supersede your business. Don’t get stuck analysing the past, you can’t change what has happened, try and keep it fresh and exciting, set goals, targets and always focus on the next step.