The top five essential tips to help you on your entrepreneurial journey with your start-up.
When developing the seed of a business idea into a real-life start-up, hands up how many of you have hit a speed bump – read mountain – or two when it came time to execute? While your idea may be rock-solid, putting pen to paper and turning these brilliant ideas into a viable, profitable business model that meets some form of consumer want or need is key to success.
No matter how new you are to the game or what you’ve studied prior, feeling overwhelmed and unsure of the next step is simply a rite of passage for many budding entrepreneurs. Venturing into the unknown is part of the terrifying fun of it all and means you get to bend or make up the rules as you go on.
We’ve put together our top five essential tips for whatever stage of the entrepreneurial journey you’re on.
Tips for start-ups
- Get your structure right
For new businesses, the three most popular business structures are:
- sole trader
- partnership
- company
Each has different tax treatments and liability to consider.
Enlist a good accountant to give you structuring advice before diving in. This is one decision you want to ensure you get right before starting out.
- Play the name game
Register your name with the Australian Securities and Investments Commission (ASIC) before someone else beats you to it. You can even put dibs on your name by lodging a form to reserve it for up to two months.
If you plan on having a website, check to see if your name is free and then reserve a domain name. Once this is all checked off, apply for an ABN and an ACN if you’re a company. Remember to register for GST with the tax Office.
- Read The Lean Startup by Eric Ries
This is a must-read regardless of size or industry.
The hard-hitting point in this book is that you don’t need to spend years developing a product or service, or track down the perfect office before you launch. It’s all about testing out your vision and taking your concept to market to gain valuable interest and feedback to make it the best it can possibly be.
Venturing into the unknown is part of the terrifying fun of it all. It means you get to make up the rules as you go.
- Estimate your costs
The general rule of thumb is to have the first six months of fixed costs on hand at the time of start-up.
When planning and estimating your costs don’t low-ball expenses and remember that unexpected costs can quickly outpace the steady growth of your business. Forward planning is key so you don’t run out of cash.
- Get a good accounting system
Go with an accounting system that is user-friendly, easy to navigate and has the functionality to grow as your business does.
Tips for newly established businesses
- Plan for growth
What direction do you want to take your business? Do you have grand plans to scale? What is your purpose?
Getting clear about your answers will give you the reserves you’ll need to draw on when times get tough. Goal setting is a powerful process that not only sets out milestones to work towards, it also keeps you accountable and encourages you to achieve what you’ve set out to accomplish.
- Monitor your cashflow
In the start-up world, expenses versus incomings can spiral out of synchronicity pretty quickly if you aren’t monitoring your cashflow carefully.
To ensure your monthly budget balances, it’s vital that you plan for revenue to be received ahead of any planned expenses. If this can’t happen, creating an account with a surplus of funds to draw on in times of need will give you the peace of mind to forge ahead with confidence.
- Get creative
Brainstorm ways to save smarter. Think about whether there is a way to borrow, share or rent an item, service or expense. Pick and choose between the best and most cost-effective paid events you attend.
It’s easy to get carried away learning new skills and signing up to new networking opportunities, but if you think creatively about how to stretch your money and better utilise your time, you’ll become a savvier and more resourceful business for it.
- Focus on what you’re great at and outsource the rest
In some cases, it makes good sense to outsource specific areas of the business if it will improve efficiencies and overall output.
You may struggle to hand the reins over to someone else, but in order to grow the business in the Way you want to, it can be wise to invest in the right people working in areas where they can add immediate value.
- Take a step back
It’s easy to get bogged down beneath the weight of the day-to-day demands of your role – so take a step back and assess how the business is tracking toward achieving the goals you set out.
By taking time out of your day to think more holistically about the bigger picture, you will find inspiration and bring new ideas into your business from the unlikeliest of places.
Nathan Hancock and Nik Preiner, The Wealth Connection
This article first appeared in issue 9 of the Inside Small Business quarterly magazine
