FROM START UP TO SUCCESS
B Y B U N D A B E R G S T O P B U S I N E S S S T R A T E G I S T
- R E B E C C A C O R B E T T -
In the recent years there has been an influx of people ditching the 9 to 5 and starting their own small business. It can afford you a great work life balance and financial freedom. But not everyone has had the luxury of attending University to learn the ins and outs of running a business. Sure, you may be the best seamstress on the block or able to craft a table from concrete. But that won’t guarantee your success.
To get started you will need to refine just what it is you are going to sell. It may be something you love and have a passion for or it might just be a skill you have learned or an industry you have experience in. But the most important part and often the most overlooked task is determining the viability of your product or service. Spending some time doing your due diligence before going to far in the process of startup will save you so much heart ache and funds down the track and give you the best chance of your business surviving.
Once you have determined the viability of your brilliant idea now you need a plan. According to the Bureau of statistics, more than 60 percent of small business cease operating within 3 years of starting. What ASIC found was that 44% of businesses suffered poor strategic management, 40% has inadequate cash flow and 33% suffered from trading losses. Most of this can be avoided with the right strategic planning. It’s easy to get caught up in what needs to be done RIGHT NOW as opposed to what we need to do to get where we want to be. And that’s where a business plan comes in.
Think of it as a road map…if you don’t know the streets, you won’t know how to get there. Your business plan is the same. Sure, you know you want to end up with a million-dollar business known all over the world. But how exactly are you going to reach that (somewhat lofty) destination?
Business plans are also a must when discussing finance with banks, financial institutions or investors. No one will work with you without seeing your plans for success clearly mapped out. They are already seeing the end game; they simply want to see their return on investment. And with a well thought out business strategy you will be able to show that.
Being an entrepreneur is no easy job. It requires passion, perseverance, people management skills, and a great deal of patience. The most important thing you need to remember is that everything takes a certain time to bear fruits.
