Prospa founders’ tips for starting and running a small business successfully

When Greg Moshal and Beau Bertoli started Prospa in 2012 they both had the same vision after experiencing similar issues as small business owners – finding a way to get money into the hands of small businesses.

Small-business owners are making decisions everyday, just like big businesses, and know that to make money you have to spend money, but until Prospa was launched that was almost impossible.

“The success of our business is that we have been small-business owners,” Greg said. “Once you’re up and running it’s all about scale, growing the revenue faster than the costs.”

Prospa now employs more than 270 people across Australia and New Zealand, but the two co-founders believe the fundamentals of owning and running it are the same as any business – large and small. Here, they share five tips for any business – those just starting and those looking to grow.

1. Build a business plan

Before you spend any money, jot down thoughts that will help you frame up the business idea, especially if you’re planning to ask someone to invest in the business. Your business plan should address the customer problem you’re trying to solve, who the target customer is, what the current market environment looks like, and your proposed solution. Also consider including how you will fund the business and whether you’ll need any staff or resources, along with a timeline of goals.

2. Build a cashflow forecast 

Most start-ups fail because they often run out of cash, not because they had a bad idea. Revenue may come in slower than your spreadsheet suggests, but costs can also increase quickly! You should aim to break even within the first year, to ensure you have access to enough capital to see you through the challenging periods. If you can achieve this, you’ll be well on your way to making a profit and sustain your business for the long run. 

3. Put in the hard work now

Starting a business is exhausting but no one else can drive it like you can. Be ready to work long hours for the first three years. We were working up to 80 hours a week when we started Prospa! Putting in the hard work now is likely to increase your chances of success for the future.

4. Resolve problems early

For those just starting out, it’s important not to get emotionally tied to your business idea. If it isn’t working (which can happen), take a step back, recognise the problem and take the correct action to help find a resolution. It’s important to lean on people who have your back and can help you get your business running or provide constructive feedback and help you stay on track.

5. Build a supportive team

As Prospa’s leaders, we’ve built a great team of people by providing a collaborative, inviting, innovative and respectful environment. We celebrate our team, listen to their ideas, recognise and reward great achievements, and actively provide our people the same great experience we provide our customers. After all, it’s our people who help our business succeed. 

Prospa is Australia’s leading online lender to small business and helping businesses grow is what we’re all about. With hassle-free application and funding possible in 24 hours, this time tomorrow your small business could have access to funds for growth and cash flow support. Find out more.

Disclaimer:
The information in this post is provided for general information only and does not take into account your personal situation. Nothing contained in this post constitutes advice or an endorsement or recommendation of any kind by the contributors or Prospa. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors.