Starting Your Own Business

So you have found a skill you can capitalise on, decided that your skills and knowledge could be better utilised in your own business, or you are tired of your current job and want to branch out on your own?

Before resigning and rushing out to spruik your new business, there are a number of things you need to consider first.

Whilst human nature is to get excited and rush ahead, ten important things that you must not do include:

1. Consider starting a business in an industry, or field that you do not have enjoy, or know anything about;

2. Make any hasty decisions without doing your homework. Opportunities will come and go, but remember, there will always be another similar opportunity;

3. Be fooled by conceptual high returns, without real investigations and reality testing;

4. Select a business that is too high a risk, or too big a task. Start with small steps, get some knowledge and experience and work your way to bigger things later;

5. Ignore the negative aspects of your intended business. Review them, research them and get facts, before dismissing them;

6. Choose a business that requires you to have low prices to attract customers. Do not undercut your competition either, to attract customers, in turn, eating into your profits;

7. Allow self confidence, or a cocky attitude to overshadow due diligence;

8. Think about leaving your current job, before you have completed the planning phase of your new adventure and completed the start up phase;

9. Compete with your existing employer for business;

10. Risk all of your savings, assets, or inheritances. Do not take out loans, or overdrafts;

Ten important things that you must do include:

1. Prepare a budget, save money and live frugally before starting your business;

2. Learn about your intended business by working in the industry and gaining skills, knowledge and experience;

3. Objectively consider your skills, knowledge, experience and training against your potential competition. Do you need further training? Do you need to gain a particular edge?

4. Do lots of homework! Research the industry, investigate your potential clients, review the set up and running costs, consider the viability etc;

5. Make an objective and compelling list of why you want to create your own business and why you should remain as an employee;

6. Consider the pros and the cons of starting a business. If the list of cons is longer than the list of pros, review them and their impact. Do not include such things as lack of confidence, lack of self esteem etc, as a con as this is not a true reflection of the intended business, but of yourself;

7. Consider the advantages of having a partner, such as a family member, friend, or colleague. However, also consider the impact on your relationship with that person, should you go into business with them;

8. Consider subcontracting, or outsourcing portions of your business to low cost skilled suppliers;

9. Test your product concept, or service in a small area of the industry before starting your business, or expanding;

10. Create a business plan;

Finally, if you have made all of your lists, done your homework and completed your business plan, you are now ready to go. Ten things you now need to do:

1. Think of a great, catchy business name that is not a mouthful, off putting, or hard to remember;

2. Create your identity. Create a logo and consider creating a website, although this can come once you have established your business;

3. Obtain an Australian Business Number (ABN) and an Australian Company Number (ACN for companies ie: Pty Ltd);

4. Locate a business premise. This may be your home study, a small rented office in a larger building, or your very own business premises;

5. Determine your mailing address, telephone number and email addresses. If you are working from home, it may be pertinent to have a second telephone number (as opposed to your home telephone number), a PO Box (instead of your home address) and a specific business email address;

6. Either prepare your own, or have printed, stationery and business cards ie: letterheads, fax cover sheets, business cards etc;

7. Open a bank account and organise internet banking;

8. Prepare for opening. Do you need stock? Do you need stationery, or specific tools? Do you need to advertise your services?

9. Consider an office opening. It may be a small gathering of friends and family, an "open for business" sign, or simply an advert in the local paper;

10. And last but not least Celebrate!

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