Five quick tips if you’re thinking about starting up your own business

So you’re toying with the idea of starting up your own small business - but you’re still uncertain about either whether to do it or how to go about it. Of these two possible uncertainties, resolving the first issue will determine whether you need to worry at all about the second issue. 

Although there is definitely some merit in the old adage to "follow your dreams", there is still a need to ensure that there is as much"head" as there is "heart" in your decision making  . Yes, you want to be doing something that you're passionate about - but you need to be able to pay the bills as well.

So here’s five quick practical tips that might help you, if you're contemplating the entrepreneur's path … And by the way, you might like to also check out the link Small Business Resources

1. .If you don’t have bucket-loads of grit and resilience in your character, then now’s not the right time for you to be looking at setting up a business.  It doesn’t matter how good your business idea is, the fact is that starting and running your own business will prove frustrating - and will inevitably challenge you to draw upon all of your inner resources. Yes, it can prove deeply fulfilling to build and create something from scratch – but there will be many periods of disappointment and stress. In the early days, there will likely be times of cash-flow strain, when you will be kept awake at night with the anxiety of worrying whether your monthly sales will exceed your monthly costs and expenses. It's a sobering statistic when you read that almost half of new businesses have "closed shop" within two years of opening…….. But if you are someone who is eager for the challenge of being your own boss, not easily discouraged, and if you are also  highly self-motivated - then read on ......
2. Be conservative when projecting your sales versus costs  Once you decide that you want to stop just dreaming and start exploring the real viability of your business idea, then it's time to put your business plan together and take a serious look at the numbers, It is wise to be a little conservative when developing your business plan and projecting future sales – rather than being wildly optimistic about revenue and thereby possibly over-committing on your early expenditure because of  an unrealistic expectation of strong sales.
3. Keep an eye on your competition. Who is already playing in your space … how will you differentiate yourself from them? …… Alternatively, maybe there are no current players and there really is a gap in the marketplace for your product or service. Perhaps nobody else has yet seen the problem for which you will be providing people with a solution ….. However, you still need to consider the potential cost or ease of entry for a new player in the future. In other words, were you to succeed with the commercialisation of your idea – even though at present there may be an absence of competition – chances are that others will eventually see your success and seek to copy what you do. So even after you’ve established your business, you’ve got to continue to learn, improve and innovate.
4. Selecting & registering your business name.  This is one of the most critical early decisions that you will be making. There are two schools of thought on how to do this. One option is to choose a “quirky” name that is different and therefore memorable for your customers. Examples of this might be Google, Apple or Bing. …… The other option is to choose a name that clearly reflects the service or product that you offer. For example Anderson’s Landscaping Services. This might also reflect that it is a family business. However it can be very effective to add a “local” aspect to your business name if you are going to particularly target a local market. For example, Bayside Gardening Services or Eastern Suburbs Engineering. If possible, align the domain name of your website with your business name – although this is not essential it is generally preferable to have that consistency. Within Australia, ASIC is the government agency where you can  check business name availability. Even if you intend to set up your business as a sole trader, you will likely be required to apply for an ABN in order to register your business name, after you've established that it is available (the ABN  on-line application is free - although a tax agent would likely charge you a fee to do this on your behalf).  In 2017, the annual cost of registration of a business name is $35. For creating your business website and selection of a domain name, Wordpress is a very popular and affordable platform for those who want to save some money and do-it-yourself.
5. Start small and test the market. You don’t necessarily have to quit your day job in order to test the viability of your business idea. Let’s say for example you intend to sell hand-crafted aromatic candles. Before taking out a long term lease on a store and setting up shop, you might first try selling them at local markets. Maybe you set up an affordable on-line e-commerce store and process your orders in the evenings after work. ……… Over time, if you discover that a steady demand for your product or service does exist and your sales clearly confirm the opportunity exists, then you might decide to commit to your business venture “full-time”. 

In closing, let me say from having started and run my own consulting business - Performance Development - for more than 25 years, it has been both a hugely rewarding yet at times extremely stressful experience. You might perhaps ask if I had my time over, would I do it again? ...... Absolutely ...... But whether it is the right path for you, will be your decision. By all means, consult with other people that you trust and respect - and consider their advice and suggestions. But ultimately it is going to be about what is right for you (and your family, if you are the main bread-winner)

Other relevant articles - "Mental toughness and running your own business" and "Avoiding seven common small business pitfalls"  AND here's a link to a great brochure that you can download from ASIC (the government agency that regulates companies in Australia) which offers good practical advice on starting up a new small business "Doing Business in Australia"

Being Your Own Boss: Is running your own business right for you?

Do you have what it takes to run your own business?

Hey, let’s not kid ourselves here. Yes, there are many benefits and rewards to starting-up and running your own business – that’s for sure. But there are also risks and stresses.

On the plus side of the equation, there’s the freedom of having more control over your working hours. There’s the attraction of making more of your own decisions and in some ways, feeling that you’re more in control of your destiny. And when you’re running a business that you’re passionate about- well, it doesn't even seem like “work”. You’ll be paid for doing more of what you love.

BUT it can be a rough and rocky road that you travel with many pitfalls, especially during the first year or two. Some studies suggest that more than 40% of small businesses fail within three years - however those business owners who had prepared a well-researched business plan were more likely to succeed.

But will you simply end up another statistic? …… Quite apart from your business idea - you've got to ask yourself if you've got the "right stuff". Here’s a sample of essential qualities that are needed if you’re going to make a go of it as an entrepreneur ……

1.      A vision that you’re passionate about - a dream that lights a "fire in the belly", that excites and energises you. You need to have a picture in your own mind of what your business would look like in 3 years; including the types of customers that you would be doing business with

2.      You’ve got to be a self-starter ……. If you are someone who needs to be told what to do, then becoming self-employed is not for you! …… Nor is there going to be anyone to motivate you – this is again something that will have to come from within. However as long as your vision is something that arouses excitement within you, then keeping this “in line of sight” should keep you energised. But you’ll need and determination to get out and actually turn ideas into plans and actions. You can’t be someone who will wait for opportunity to come knocking at your door – you’ve got to get out and create opportunities by knocking on plenty of doors.

3.      The successful entrepreneur in small business is one who is not only inspired – but can inspire others with their enthusiasm and conviction. In the early start-up days of your business, you won’t yet have a proven track record in your industry or a portfolio of clients to showcase that will give you authority. Instead it will be more about your ability to sell and persuade others to give you the chance to prove to them that you can deliver what you promise …… Whether these other people are potential investors or potential customers – can you sell your ideas?

4.      A willingness to keep on learning is essential. Quite often the person setting up a business will have particular technical expertise ….For example, you might be a highly capable mechanic, or hairdresser or website designer or plumber or software engineer. However there will be other aspects to running a business that you have to be prepared to learn. Whether it’s financial management and record keeping – or maybe  it’s sales and marketing – or perhaps it’s software that enables the planning and scheduling of work operations ……. There will be additional skills and knowledge that must be acquired along the way. There will hopefully come a time in the future where your small business has achieved a level of success and revenue that will then enable you to choose whether to outsource some aspects of the business operations. But in the first year or two, typically the imperative is to minimise your operating expenses – so you will need to be willing to wear many different "hats".

Let me add that I have been running my own business for some 20+ years - so it has been a long time since I have reported to another “boss”. Truth be told, I’ve become so used to being my own boss and being in control of my business destiny (well, apart from factors like the GFC that sometimes will throw a grenade in even the best of business plans) that I would find it very difficult to return to working in a corporate role.

My customers are my bosses in a sense – but I do have the added luxury of choosing to refuse to do business with a customer if I find them unreasonable or unethical.

I’ve no regrets about starting up my own business. Of course there are things that I wish I’d have done differently – one of them being that I should have found an experienced business mentor much earlier than what I eventually did ….. Another lesson was continuing to do business with a customer for far too long, despite not being paid. Yes, you can extend your credit terms with them – but not indefinitely. There comes a time when if they’re not paying their bill, then you’ve got to “switch the power off”. Hoping they will eventually do the right thing will not pay your bills.

So if you’re still wondering whether small business is right for you, check inside yourself to determine whether you’ve got the necessary passion, the drive and the desire to learn. But just as importantly is that you confirm your idea possesses the required commercial viability

However, maybe you're feeling anxious about the prospect of losing some job security if you were to become self-employed - so I would say this to you …….. Consider in 20 years’ time, how deeply would you regret not taking the risk? Would you possibly look back and feel disappointed that you didn't have more faith in yourself?

This does not mean that you ignore any of the risks – but that you weigh them up against what you stand to gain. And consider whether some of the risk factors can be mitigated and managed through more careful business planning. Whatever you decide to do, I wish you happiness and fulfilment.  And in the words of David Gemmell ....
“May all your dreams but one come true – for what is life without a dream”

More tips and resources can be found at small business management  f

And finally, one last short video on the theme of Lean Start-Ups - which is based on the principle of getting your product to market as soon as it is "workable" rather than being obsessive and waiting for "perfection". ... Technically minded entrepreneurs often want to keep adding extra features to their initial product design - which create further delays to market release. The idea of a lean start-up is that you can incorporate customer feedback as an iterative and ongoing process of product improvement, after release. 

About the author
Brian Carroll is the founder of Performance Development, a training business in Melbourne, Australia.  He is an experienced management coach with a passion for helping people achieve their goals in life and business. You can find out more about Brian at his Google + profile