8 Steps before you start a new business

While starting a new business is fun and exciting, it can also be daunting and challenging at the same time for some, especially if you’re not prepared and don’t know what to do.  The most important thing you will need to be successful is drive and determination to see it through.  You will have to have a winning attitude.

Hopefully these steps will help by guiding you through the steps so you understand what is needed and what’s ahead for you.

Step #1  Be honest with yourself

Before you start this journey, you will have to be truly honest with yourself as you need to understand and know who you are, what your strengths are and what your weaknesses are.  We are all good at certain things, but not everything, you will have to accommodate this in everything you do and maybe be prepared to out-source things you are not the best person to be doing, it can be hard for some people especially those who like to be in control of everything.  Getting others to do things we aren’t the best at or haven’t got time to do is very sensible.

You have to ask yourself why you are starting your business and what your motivation is and what you want to get out of the whole process.  We have to be prepared to ask for help, guidance and support from those close to us and from professional people.  Finding a good coach and mentor who we look up to will keep us focused on going in the right direction is essential for success.  It is very easy to get distracted and go off on tangents that don’t make us money and only waste our time and energy. This is also a good time to think about what the culture of the business is going to be like and what it is you want to achieve.?

Step #2  Research new business ideas

Come up with an idea?  Work it through, brain storm and expand upon it.  Talk to people and find out the demand. Do some research on your idea and ask people that aren’t necessarily close to you so you get an unbiased opinion.  Get out into the market and do research, ask your potential customers if they can do the research for you or pay someone to do the research.

Step #3  Know your market

What is the market size? Who will buy your product and how often will they purchase.  How urgently do people need this thing and where do they normally purchase it from?  Who would your competitors be and what are they doing well and what could you do to improve what they are doing?  How do they attract their customers and is it possible that you do the same or do you want to do it that way?  What is going to make you different, better and more desirable to your customers?

Step # 4  Business Plan

A business plan is a road map or set of instructions that will outline the steps needed to make your business successful and reach the goals, it defines the strategies, tactics and specific activities for execution needed to achieve budgets and cash flow.  If finance is need a full detailed business plan will be needed but for smaller operations a 2 page business plan may be all that is needed for direction by the new business owners.

Step # 5  Finance for your Business

If you need finance using a broker may be best so you get the right lending company to suit you, your business plan will have to be in full detail with all projections fully documented as well as all foreseen expenses.

Step #6  Legal Requirements

You have to work out what sort of legal entity you will be, are you doing this business on your own as a sole trader or do you have a partner and be forming a partnership.  Will you need to register a company to protect any assets you own and if the money you will turn over will be substantial or, maybe a lawyer to set up any patents or the business partnership.

Step #7  Accounting set up

Do you need to see your accountant and get advice before you start the set up?  Keeping records and choosing an accounting system is something you will definitely need to know, as you will need to record all your expenses and income, but what you need to know is this compatible with the software your accountant uses or book keeper uses?  Also are you going to enter it all yourself or are you going to employ a bookkeeper to look after all your accounting affairs and do your own BAS?

Step #8 Download and Use a Business Checklist

Working to a checklist will help in the basic set up of a business in Australia. You can see what you have achieved, the things that are underway and the things that still need to be addresses    Checklist link pending………

Best Step  Stand back and Review your Business

You will make mistakes, plenty of them in every area, don’t let these mistakes upset you, learn from them, review everything you do and be open minded, be creative, open to change so you can improve what you are doing.  Every complaint you get (and you will get plenty over the time) is a great learning experience on how you could have done things differently and improved what you are already doing.  Remember not everyone will like you, so don’t get hung up on any negatives that are directed at you, they are most likely not personal and the other person has just had a bad day.  You won’t operate the same way when you finish or sell your business compared to the day you start out, changing things constantly if needed is so important so you improve what you do this will give you the results you want.

Most importantly be proud that this is your business you created it, you also determine where it will head, be creative looking for new opportunities and have fun! Are you ready for our Love Light & Inspiration – Business Set Up Essentials