At some point in most people’s lives, the temptation to start their own business dangles before them like the proverbial golden apple. After all, working your own hours, being your own boss and (best of all) the unlimited earning potential, can be a tempting combination.
Before you open the doors to a new life as an entrepreneur and long before you start picking out your first BMW, experts agree that a solid business plan is a vital platform for any aspiring business.
Join me as we consider the elements which must be in place to give your business a solid basis for success.
Financially speaking.
There is an old saying, ‘you have to have money to make money’–so unless you are a self-funded tycoon, you will need to approach a lender. Many small business start ups head straight for a business loan but it is often difficult to get a business loan until your business is established–a bit of a catch 22 situation.
Alternatively personal loans in Australia are available on your personal assets which makes them easier to obtain. A personal loan also saves you the discomfort of having to put together a business case to present to a lender.
Once your business is up and running and you are thinking of expanding, then a business loan may suit your needs better.
Products and production.
It seems a no brainer that stocking the right product, quality made and well priced, is a winning combination. Unfortunately may small business owners don’t do their homework regarding price points and market trends. With consumers having access to online product and price comparison as never before, getting these wrong can have devastating consequences to your business.
Offer a range of other services around your product to make it attractive including:
- Free delivery
- Competitive pricing
- Back up service
- Fast response times
Analyze, research, assess.
Know your market. You may make the best coffee on the eastern seaboard but if you open your business where there is a glut of our cafes, chances are you have set yourself an uphill battle.
Position yourself where you have the best chance of success–whether literally–in your physical location or figuratively–by offering the market something novel and which fills a need.
Many businesses find their feet online first, prior to committing to a physical address. This has a number of advantages including:
- Low overheads
- No contract commitments
- Websites offer online shops
Marketing.
The value of a multi pronged marketing campaign cannot be overstressed. If your competitors have a high profile brand campaign and you don’t, it can be very hard to compete.
Alternatively, if your competitors don’t have a strong online presence, marketing could be a valuable asset to leverage you into the market.
Create a strong brand through easy to identify colours, logos and advertising. A social media marketing strategy is becoming one of the strongest tools in any business’s tool box. There are over 3 billion internet users and of them, over 2 billion use social media sites, actively. Can you really afford NOT to be tapping into such a wealth of comparatively low cost marketing?
Legally yours.
From the outset, it is imperative to have a commercial lawyer at your disposal. They can be of tremendous value when you are looking to buy a business, lease or buy premises and drawing up and assessing contracts.
If you are planning on purchasing an existing business, a lawyer will assist you with such important issues as:
- Performing due diligence – checking that a business is viable
- Organising licences and permits
- Navigating and advising on tax laws
- Advising on encumbrances or debts a vendor’s business may have outstanding
- Reviewing and drawing up contracts including property leases or purchases
- Conveyancing
- Restrictive covenants to prevent the seller opening up in immediate competition
While we have only had time here to scratch the surface of the array of considerations involved in starting up your own business, it is obvious that to succeed, all businesses must begin with a strong foundation.
Get the ingredients right and you could soon be well on your way to an independent and prosperous future.
