Want to be your own boss? Need to have a good work-family life balance? Tired of the daily monotonous grind at work and need challenges to pep up life? If your answer to one or more queries is a strong YES, you already have things cut up about your future life, mentally at least.
Regardless of whether you are thinking of starting your own venture or buying an existing one or turning a hobby into a well paying commercial gig, you have to consider a lot of things before leapfrogging into a brand new environment. This is because there is a downside to all these too. Worldwide statistics show that almost 90% of startups fold up within the first year of operations itself because of various factors mainly financial. Hence if you do not want to increase the percentage, ground your start-up after eliminating all adverse possibilities.
Here are a few effective tips that you can follow to turn your dream of running a startup into a reality.
Start with yourself
Before stepping into the business world fully, you have to prepare the groundwork. Come up with a business idea and analyze its economic feasibility in detail. Do extensive research on the project and evaluate whether your existing skill sets match with what you will be required to do in the future. Make sure that there is a demand for the product or service that you plan to offer your customers. Study your likely competitors and the health of their business to get a clear idea of marketability of what you will be offering.
Know your customer
You have to know who will be your future customer because your main source of income in the future will be from sales and conversions. By understanding your customer and their specific needs you can create your products and services accordingly for maximizing in-flows and profitability. This will also provide a unique buying experience to them, thereby ensuring repeat purchases and a superior brand loyalty. The whole process can be done by profiling your potential customers and analyzing their needs through extensive and in-depth market research.
Structure a business plan
Do not compromise on investing time and resources in creating a business plan because this is going to be critical for the success of your startup in the long run. A business plan is a document that defines your future goals and objectives and details the path that you should take to reach them. The plan will contain your projected financial requirements, marketing strategies, product pricing and product launches and competitor analysis. The latter is particularly necessary as you will understand the approaches taken by your competitors to be successful.
This document should be so comprehensive that you can even place it before financial institutions for sanction of credit limits or even to get a partner on board. If you feel that this exercise is beyond you, hire a consultant from renowned agencies like Plan 4 Profit who is well conversant with the local business scenario and industries to create this business plan. For example, if you plan for a startup in the State of Victoria, Australia, opt for Business Advisory Services in Melbourne. The firm will be familiar with all statutory regulations for starting a business in the State.
Choose a business structure
For a startup in Australia, there are basically four business structures that you can choose from.
• Sole Trader – As a sole trader you will be conducting business in your personal capacity and will be responsible for all facets of your venture. Any debts or losses cannot be shared with others.
• Partnership – You will be jointly running the business with a number of people which cannot exceed 20. There are two types of partnerships, general and limited that will be governed by the laws of the State.
• Trust – A trust is an obligation imposed on a trustee to hold business assets (or any other) on behalf of beneficiaries. As a trustee, you will be legally responsible for all its operations and any decision that you might take.
• Company – A company has the same rights as an individual and can raise debts and sue or be sued. However, as a company owner, you and your shareholders can limit your individual liability and not be personally liable for debts.
It is very necessary as a business startup to go carefully through the necessary regulations governing each of them and then choose one that suits you the most.
Arrange for registrations, licenses, and insurance
Requirements for business registrations and licenses are not standardized and there will be various regulations for different businesses even within the same industry. It all depends on what type of venture you propose to start and from which place you are grounding your business. This is mainly because regulations differ from State to State. Some business statutory regulations might fall within State laws and some in the Federal ambit. Check websites of Government bodies and local councils for all information.
As important as registrations and licenses are the need to take out insurance for your business. Your goal should be to protect the business and minimize risk as much as possible. There are a number of types of policies that TR Consulting agency can suggest to opt which includes ensuring your company, all commercial risks, workers’ compensation and even your income. Talk to an insurance broker who will help you devise the right package that will optimize all your needs.
These are some of the tips that you can follow for grounding a successful business venture.
Matthew Kingsford is a business consultant and marketing advisor with over 8 years of experience serving a wide range of industries be it health, banking and finance, telecommunication, transport and logistics, mining and energy and government. He works with various businesses offering a full range of professional business consultancy services in Melbourne.