Considering Starting Your Own Business?

Rate this:
By - 30 June 2009

So, you’re tired of the weekday slog and ready to start making it on your own? Starting your own business can bring many rewards, you’ll be working on your own terms and you keep all the profits from your own efforts.

 

Every year thousands of Australians start their own small medium enterprise. Some will succeed, but many will fail. Before you start investing your time, money and energy, do some research to make sure you are on the right track.

 

You may have a great idea, but where to next? The road from dreamer to success story is a long and wearisome one and small medium enterprise is not for everyone. Before you slam down the letter of resignation on your boss’ desk, take some time to consider the reality of starting a small business. 

 

Are You Cut Out for Small Medium Enterprise?

 

Starting a small business is exciting. Many slaves of the nine to five drill will daydream about being small business owners; the massive income, the late starts, the long lunches… a dream which has about as much legitimacy as Cinderella.

 

If this is you - Wake up! Consider that most small business owners work a minimum of sixty hours a week. They often make a financial loss in establishing themselves and will take years to pay off the business loans acquired.

 

Yes, starting your own business means there is an excellent lifestyle, along with fiscal reward for those who succeed, but be prepared for it to take years. Owning a business is hard work, but you probably already knew this.

 

Make a list of the pros along with the cons for working for yourself. Take into consideration the financial risk involved, the time away from your family and your stress levels. In the early excitement of starting a small business these unseen costs can be easily overlooked.

 

Make a Plan.

 

It may seem feasible to get the ball rolling straight away, but before you start consigning shipping containers from China or signing the Contract of Sale for your emu farm it may be worth taking some time out for planning.

 

Proper research is integral. You can start small with a business plan and some spend some time researching your competitors and market. If you are serious you may wish to consider some paid market research. While there is a certain amount you can achieve on your own, market research professionals can bring you the gold; not just what your competitors are up to, but also unexplored market niches you may not have considered yourself.

 

Sometimes you have to spend a bit of money to make a lot of money. A good business plan will be around twenty pages and will include a decent summary of the past of the small medium enterprise and any persons involved in it, a detailed summary of what goods or services the business will provide and how they will do it, a section dedicated to market research showing the business’ place in the market and competitors and conclude with a projection of income and a financial plan.

 

Talk to Somebody Who Knows.

 

Has someone inspired you to start your own small medium enterprise? Most people have a role model even if they don’t know it. Seek them out and ask their advice, you may be surprised at people’s willingness to help.

 

Ask how they got started and what they did right or wrong along the way. Did they face particular obstacles along the way? This is not a suggestion to steal the business plan from under their nose, but rather a hint to look for advice in all the right places.

 

About the Author

George Butler
Raj Aryan has varied interest in the field of business. In particular, he has a keen interest in SME's and the challenges these businesses face. He has written numerous articles about small business.