Recently I had a question from one of our readers “I would like to open my own business, with little money, what things are crucial in the success of a business?” Having your own business can be a great way to get ahead financially; however it can be a lot of hard work and the buck stops with you! Here are some of the things you need to consider:
The business idea
You need to find an idea that is profitable. There are lots of great ideas out there but when you translate them into what needs to happen to make a sale, how many sales are likely given the market opportunity and how much profit you might make from a sale most of them don’t look that attractive. Having you own business may not soley be about the money for you however its important to look at whether you are happy with the possible return you may get for the time, effort and costs you put into your business.
Skills
The next thing you need to work out is what skills do you have and how do they fit with your proposed business idea. Understanding your strengths and weaknesses is very important. Usually when you start a business you have to do everything, however the key part of your business needs to be aligned with your key strengths.
Write a business plan
Far too few people write a business and marketing plan before they launch into business. The old saying that if “you don’t know where you are going any path will get you there” is very true. You don’t need to write War & Peace, however you do need to cover the key areas of your business. Your plan may only be a few pages but should include things like:
• Concept/idea
• Branding and marketing
• Key relationships, customers, strategic alliances
• Cashflow and funding
• Resources needed (staff, technology, stock)
• Your team (lawyer, accountant, financial adviser, business mentor, bank manager)
Motivation
Having your own business requires a lot of self motivation and discipline. Some things are going to work and some are not. You need to be totally focused and passionate about what you are doing to work through the tough times as you will have them.
Having your own business can be incredibly rewarding and can provide lots of benefits. It just a matter of doing some planning in the beginning so it’s a worthwhile experience for you and achieves what you want it to.
Some resources
Local libraries – it can good to keep your costs down and borrow rather than buy books
Community Education – there are many courses run around the small business space
www.smallbusinessexpo.co.nz – run in between April and June each year
www.biz.org.nz – a government run website with a vast amount of information and resources
www.businessmentor.org.nz – free business mentors for those in business more than 6months
www.homebizbus.co.nz – resources for those that run a home based business
