You might be unhappy at your current job, with the feeling that you are not realising your true potential and you have a few friends who run their own business and seem to have a decent quality of life. Is there anything to stop you going down the same path? The short answer is no.
If a seed was planted and you have now reached the stage where you think setting up a small business is doable, here are a few common mistakes to avoid.
Insufficient capital – You would be surprised at just how many entrepreneurs fall at the first hurdle – they simply run out of money. Even the best-laid plans can fail; all it takes is a few unpaid invoices and a compensation claim to see your company go into administration. Crunch the numbers to find out exactly how much capital you need and if you fall short, take out a business start-up loan.
Spending money on non-essentials – Of course, it would be nice to have a fully equipped office from day one, yet it would be much cheaper to create a home office – a stack of IT hardware, an uninterruptable power supply and a desk and chair are really all you need to start. The first 12 months are regarded as critical for a new business venture and a solid business plan is a must.
No marketing plan – This is a common mistake to make; you are probably thinking of waiting until you are established before investing in digital marketing; sadly, it doesn’t work that way, you need to have a dynamic online marketing plan from day one! SEO and social media are two areas to focus on, especially if you are looking to sell to your local community. Set aside a monthly budget for SEO and you won’t regret it.
Launching at the wrong time – Of course, it is an exciting time to launch a new business, but before you do, have you a good digital marketing plan in place? Ask a business coach to review your plan prior to the business going online and it is likely that he/she can find weaknesses that need to be addressed. Here are some business expansion ideas that might come in handy in the future.
Lack of insurance – As the owner of the business, it is your responsibility to minimise risk and we recommend talking to a commercial insurer who can advise you accordingly. You should have general liability, plus your business premises should be insured, along with inventory and commercial vehicles. A good broker can merge several packages into a single policy that is tailored to your needs.
Your business plan should be comprehensive, covering every aspect of the enterprise; with adequate funding and lots of drive and determination, your small business will enjoy sustained growth. Make sure you register the business with the Australian government, which are fully supportive of entrepreneurs.