DON't know how?
We answer the most common questions from our community.
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Okay, grab yourself a cuppa and let’s have a brainstorm.
First up, think about your daily life and the things that annoy or frustrate you. Have you been searching for a product or service you can’t find? What would make your life better or easier?
Often the best ideas originate from pain points and solving a problem. Look around you. Can you come up with a better way of doing something? Does your solution improve people’s lives and fill a gap in the market?
Ask yourself – do I need the product or service myself? Would my offer improve upon what’s already out there?
Don’t forget, many successful businesses are built on niche ideas that serve a specific audience. AKA, if something frustrates you, the chances are there are others out there that have encountered the same issue.
The biggest challenge to starting up is the fear of taking the first step. However, let’s not beat about the bush. Instead, why not jump straight in? Take a gamble…have fun. See where it takes you.
In other words, get the ball rolling. Simply take one small step. Armed with your light bulb idea, can you do some research? Write a plan? Design a website? Find a mentor? Start networking?
Make a list of manageable daily tasks that each take your plans forward. Tick one thing off your list every day. Stick with it as a succession of small steps, over time, lead to huge achievements.
Great question. Let’s dive in:
SOLE TRADER
A sole proprietorship or self employment is the simplest structure to set up. Many first timers start as a sole trader as it’s quick, easy and inexpensive. Sole traders keep simple accounts and submit tax returns. Although sole proprietors keep all profits, they’re personally responsible for business liabilities and debts.
LIMITED LIABILITY COMPANY
A limited company is a popular alternative. If you pick this structure, your business exists as a separate legal entity. Business finances are distinct and separate from the personal assets of the owner. Compared to a sole proprietorship, this structure entails more administration. For instance, you have to file full, annual audited accounts, but may receive tax benefits not available to sole traders.
PARTNERSHIP
You can operate as a partnership if you plan to run a business with someone else. There are general partnerships and limited liability partnerships (LLP). In a general partnership, each partner can be liable for the actions and debts of other partners. An example is a husband and wife arrangement. In a LLP, limited partners might serve as silent partners like investors, and are not personally liable for a company’s debts.
Many startups find the idea of writing a business plan daunting.
If that’s you, don’t worry. Use our free business plan template to structure your document and organise content under the following headings.
EXECUTIVE SUMMARY
- Business summary
- Business objectives
- Current situation
- Financial summary
- Organisation and management
PRODUCTS AND SERVICES
MARKET ANALYSIS
- Industry description
- Target customer
- Market segments
- Competitive analysis
- Main competitors
- Competitive advantages
RISK ANALYSIS
- SWOT analysis
- Keys to success
- Specific risks and solutions
MARKETING STRATEGY
OPERATIONS AND LOGISTICS
- Premises
- Equipment
- Suppliers and business partners
- Production and delivery
- Legal requirements
- Insurance
- Staff
FINANCIAL PLAN
- Projected revenue
- Sales forecast
- Annual costs
- Annual profits
- Startup funding requirements
- Allocation of funds
- Income statement
- Cashflow forecast
- Balance statement
- Personal survival budget
By going through the exercise, you will figure out three key things:
* your goals
* the resources you need to meet them
* the steps to take over a specific timeframe.
Even better, if you write the plan yourself, it becomes a working document with clearly defined objectives against which to measure your progress.
First up, you must work out your startup costs and monthly expenses. Why? Because, once you know the amount to get your business off the ground, you can think about where to get it.
Some founders require little capital to get their business underway. You may be able to work from home and have technology and tools at your disposal.
Others have to fork out for premises, renovations, equipment and stock or cover the cost of employing people.
In turn, your financing decision will depend on your circumstances. Can you set up on a shoestring? Or, do you require a capital injection?
Either way, there are many sources of funding available to small business. Options include the following:
- Self-fund by using savings
- Ask family and friends
- Apply for a small business grant
- Launch a crowdfunding campaign
- Approach angel investor groups
- Pitch to venture capitalists
- Join a startup incubator
- Acquire advance orders
- Get a bank loan
- Extend credit card limits
P.S.: Banks and private investors often prefer to lend to those with a track record and already trading. If you don’t qualify for these options, don’t get disheartened. Just focus on avenues that are feasible. Trim your startup costs if you can’t raise the money.
Aspiring entrepreneurs often start businesses around concepts of interest to them.
That said, to increase the chances of success, the product or service must have widespread demand or solve a specific problem.
Look to offer a better experience. How is what you’re proposing faster, cheaper or more unique that alternatives in the market?
Ask yourself – why would customers buy from me instead of one of my customers?
It comes back to understanding your target audience. Then, creating a unique offer that adds value and delivers on its promises.
Plus, make sure your business model is scaleable, e.g. Is it capable of meeting emerging future trends and evolving consumer preferences?
Although most of us like our independent lives and the freedom of being our own boss, managing a business can sometimes feel incredibly lonely.
The pressures of business ownership may leave us feeling overwhelmed, emotional drained and even isolated, especially when things go wrong…or don’t go to plan.
It’s why it pays to have people around you who support the business. This could be:
- Co-founders and partners who share your vision
- Advisors and colleagues that can serve as a sounding board
- Family and friends who may provide constructive feedback and emotional support when the chips are down.
Given setbacks are an inevitable part of running a business, it’s important to be flexible and learn how to adapt.
One way to stay on top of any situation is to have an open mind and keep learning. Ask questions. Talk to people. Try different things. If something doesn’t work keep going as eventually you’ll arrive at a solution.
It helps to have a positive attitude that focuses on ‘solutions,’ rather than ‘problems.’ This entails trusting your instincts and appreciating failure and mistakes are opportunities from which to learn and gain wisdom.
Our advice is simple: first, get started, then don’t stop.
Even if you launch a business as a side hustle, try to do one thing each day that takes you a step closer to your goal.
Should the magnitude of any task seem to big, break it down into small achievable steps. Rome wasn’t built in a day!
So, feeling inspired and ready? You’ve got this… let’s go!
Born to be the Boss is an entrepreneurial campaign on a mission to help people start and grow their own small businesses by providing information, guidance and support.
This initiative is timely since we’re no longer living is a society where people believe in lifetime employment.
Quite the opposite, changing attitudes are encouraging more people to seriously consider entrepreneurship as a career and to launch their own startups.
You’re not alone.
Here’s some places and spaces to find more support and information.
You might also like our ‘Hit Lists.‘ They’re compilations of our favourites from startup books and masterclasses to podcasts, articles, online resources, gifts and much more.
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