Starting a business is both scary and exciting. You know you have a great idea, but it takes more than just an idea to be a success. There are a lot of things to consider when starting a business. Some you might not have thought of initially. So, to give your startup the best chance for success, we have put together our top 7 tips for success. Here they are…
1: Choose The Right Business For You
This might sound silly, but you should choose the right kind of business for you. You don’t want to be learning new skills at the same time as learning how to run a business. Choose something that you are passionate about and that you are familiar with. Minimise the amount of learning you have to do. If you can be confident in what you do, then the other aspects will fall into place.
2: Know Your Starting Position
Before you do anything, educate yourself on where you are at. Know your personal situation:
- How much time do you have to invest in this project?
- Will you have help and support?
- Is your family flexible?
- Is it going to be your side hustle or a full-time career move?
- How much money can you invest or risk?
3: Do Your Research
One of the key factors for success is knowing if there is a demand for your business. Do people really want what you are trying to sell them? Or, if there are already three cake making businesses in your town, is there need for another? Research the market and see if there are any gaps that you might fill and how you can stand out from your competitors.
4: Make A Plan
If you are serious about getting started, then you need to have a concrete business plan. Especially if you are going to require financial backing. Your plan does not need to be elaborate or fancy, but it needs to set out what your business goals are and how you will achieve them. It is a document that will evolve as your business does when you learn more about your target market and how best to serve them.
5: Test The Waters
Once you know your position and have done your homework, don’t sit on your idea. The only way you will find out if you can make it a success is to test it. Don’t get stuck in the procrastination trap as you may never get out of it. Instead, start small and see which aspects work well. Then you can build on the successful parts and ditch the unsuccessful elements.
6: Understand The Business Side
While your decision might initially have been to earn some money from doing what you love, there will always be a business aspect to consider. Even if you are only testing the waters, we would recommend you do these things
- Have a separate bank account for your business transactions, don’t confuse them with your personal spending
- Implement a way to track your revenue and expenses
- Regardless of how much you earn, put money aside for tax every month
- Consider registering for GST if you think you might make $60,000 in your first year, or if you want to take advantage of set-up expenditure
- Get a financial expert on board to ensure you are doing things right (yes, that does mean an Accountant or a Bookkeeper)
If you are unsure of any of these aspects, then feel free to get in touch with us here at Accountants Plus. We are more than happy to provide guidance for setting your business up correctly.
7: Keep Learning
It doesn’t matter how long you have been in business for; there will still be things to learn. Be open to this and take every opportunity available to you. Learn from other businesspeople and even consider a mentor. Upskill yourself where you can with courses and information packets. Be prepared to learn within your business too. Look at the things that work and build on them. Examine the things that don’t work and ask yourself why that is.
Most importantly, understand when something is beyond your learning capacity or not worth your time. When first starting a business you will do a lot of DIY, but specific areas are too time-consuming, or too risky to handle yourself. Your finances are one of those areas. Always outsource the task or call in an expert if you are not sure you are doing something right!