Starting Your Own Business

Tips on starting your own business

Basic Ingredients

To start any new business you would need the following ingredients; determinations to succeed, motivation, discipline and to never give up no matter how hard your business goals look to others. Be decisive, no matter if your decision is right or wrong error some error can be made and this is one way to learn.

View for a profit

Your new attitude in your new business should be “profits are better than wages.” You must love profits and be willing to accept that your skills are valuable to the market place otherwise you are not in business but rather you may have a hobby. The point is that if you underestimate your skills and knowledge market will punish you. If you cannot adopt this attitude than you may be better off being an employee as this is one of crucial elements of entrepreneur’s philosophy.

Skills and licenses

Do you have required skills to start your business and would your need a license for your business activity? Accepting jobs for which you do not have competencies is a common reason of business failure and can be regarded as unethical behaviour.

Unique idea

The market rule is: ‘More unique you are less competition you will have.’ Have a unique name, logo, and slogan. Set your advertising philosophy e.g. if your business is related to internet your advertising should be by using internet advertising services. There are generally two types of advertising: networking (word of mouth) and marketing you should have combined strategies to cover both areas.

Long term look

If you don’t have a long term look of at least 5 years you are already determined to fail in your business. You also must have a long term look about your industry and follow market trends so e.g. if market wants movies on DVD’s and you want to start your business of selling new movies on VHS tapes.

Competition

Questions you should ask yourself before you start: Who will be your mayor competitors? What strategies they use? What are their prices? Are my services or products feature better than competitors? How can I differentiate my product from my competitors? You can learn so much from your competitors but whatever you do not be a copy-cat as this is unethical and may be prohibited by law.

Business structure

What business structure should I have: sole trader, trust, partnership or company? This is a complex question and the answer depends on each individual circumstances. I strongly suggest asking for advice from an accounting expert as having a right or wrong business structure will be one factor to determine your business succeeds of failure.

Get a professional advice

If you are starting business which will have a turnover over e.g. 500k in the first year than please stop reading this text and find an expert accountant specialized in the area of your business. If your turnover is not going to be this high in the beginning than still finding a good accountant or tax agent is another crucial thing for your start. If you have a good accountant you should treat him as a valuable asset of your business and try to create long term relationship view from the start.

Business failure

The most common reasons for business failure is not having sufficient skills to run your business and this skill has nothing to do with your tradesman or industry skills and competencies.

Anther reason is not having proper business records or not having any records. By having a sound bookkeeping procedure in place you are taking control of your business otherwise your business has control over you.

Relying on a wrong advice can be fatal, so e.g. if something worked well for your friend or relative the same thing can destroy your business as your circumstances are different.

Having control over your budget and spending is a must. If your expenses are greater than income you are creating losses. For people who have sound budgets in place this means to stop and review their strategies and for people who run their business without any budget controls in place this does not apply as they have no idea who is running their business and how.

Always ask

Do not be afraid to ask even if your question is a very simple one. There are many places you can ask you questions such as Tax Office, business associations and of course your accountant/tax agent.

Risks and insurance

Generally it is said: ‘If you do not risk you do not profit’ but I would add ‘If you did not take your relevant insurance please do not take any risks. Your professional indemnity insurance will generally tell you for which areas of your business you are covered and which areas are not covered. Taking risk without having a sound insurance in place may be a new definition of the word ‘stupidity’. So take business risks but take insurance first.

What Do They Do, Are They Worthwhile, How Do You Choose One

Business Advisors are one of those things that seem totally unnecessary and a waste of money until you get some benefits from them.

They are also at the tail-end of priorities when times are tough.

However, the businesses that invest in a good Business Adviser during these times are the ones that weather the storm and even prosper during times of adversity. Much the same as those businesses that increase their advertising spending during these times when everyone else is cutting back.

Every business needs an external assessment from time to time.

The benefit of bringing in an experienced Business Advisor is firstly in their initial assessment and Full Business Analysis. This will give you an outside perspective of your business and its operation.

A skilled Business Advisor will be able to identify areas of deficiency and underperformance within your business. This skill comes from two directions:

1. Their previous business experience
2. There experience with other businesses in the current marketplace.

Likewise a Business Advisor will identify areas of potential problems as well as areas where changes could increase the performance of a business.

It is much like you knowing what other people are doing wrong but cannot see where you might be going wrong yourself. A problem we all have.

It is at this point that you might say, “Well I knew those things”, or “Yes, I’ll get to them in due course”.

Now we all know that you won’t change anything because you would have done so by now if you were going to.

This is where the benefit of the next stage comes into play.

The Business Advisor will give you specific actions to take and a time frame to take them in. Here you are paying good money to ensure that you actually take action to improve your business.

Now this might sound like more work for you but a good Business Advisor will generally be steering you in the direction of less hands-on work and towards more attention to business growth, value and performance.

This is where you start to see if they are worthwhile.

If your business is improving, in whatever way you want and have agreed to with your Business Advisor, then you are going to be pleased with the outcome.

It is only if you are pleased with the outcome that the Business Advisor will benefit from working with you. Just like everyone else, your Business Advisor seeks job satisfaction in the form of your satisfaction as money alone just does not cut it.

Choosing the right Business Advisor can be the hardest part of the whole exercise so it is important to know a bit about the marketplace before you start.

The marketplace is full of franchisees. These are people who have paid money to buy a system of business documents and information to be able to on sell to business people. Usually their sole qualifications are the ability to pay the required franchise fee.

Mingled in amongst this mass are people of varying degrees of business experience in various types of business. Now the industries they have been involved in are totally irrelevant and should not be part of your decision making.

What should be a part of your decision making is the experience they have had in your size of business. If they are from corporate and you do not run a corporate then they will not fit. Likewise if they are from SME’s and you are in a corporate then they will not fit. Why, because the two different categories require different skill sets and talk different languages.

10 Creative Ideas for Small Businesses

So you want to start a small business but don’t know where to begin? There are a few things you should consider before deciding upon what business would be a best fit for you. First, consider your personality type and your interests – don’t just start a business because you think it will be lucrative. Pick a business idea that will make you feel inspired and excited to go to work every day. Next, consider what type of business will do well in the area where the business will be located. Setting up a certain type of business in a market that is already over-saturated with that business will make running that business very difficult. Once you consider these ideas, there are many free resources available that explain how to fund your small business.

With that being said, here are 10 creative ideas for small businesses you can start in your community:

1) Create Custom Furniture

Starting a custom furniture business will require you to start small and build your way up, but in the meantime, you can gain experience making furniture and find out what people like and don’t like. Best of all, this business allows you to be active, use your hands, and to hone your creative skills in a way that most office jobs never would.

2) Unique Ties for Men

While many people enjoy making clothing and many small businesses focus on clothing for women and children, not many small clothing businesses are started with the intention of providing something unique for men. Ties make great gifts and never go out of style, and men love to wear ties that set them apart.

3) College Laundry Service

If you live in a college town, starting a college laundry service business could be a gold mine. Most college students hate doing their laundry and would happily pay someone a small fee to do it for them! The job is quick and simple and you will never have a shortage of customers if you charge the right amount.

4) Electronics Coach

With the plethora of new electronics being released onto the market every day, many people find trouble keeping up with how to use the devices that surround them. Your business could send out employees to help people use, maintain, and fix their electronics, or it could allow people to come visit your business when they have trouble using them. You would be amazed at the untapped market of consumers who are waiting for this type of business to exist!

5) Pet Clothing

People love nothing more than dressing up their pets. For many, it becomes a fun pastime, and for others, it can become an addiction! Tap into this market of pet owners who are willing to do anything to make their pets look cute and stand out in a crowd. Best of all, this business allows you to be creative, work with your hands, and meet many different people in your community.

6) Home Based Jewelry Business

The best part about starting a jewelry business is that, the more creativity you employ, the more likely you will be to succeed. If you have always loved arts and crafts and designing your own projects, the jewelry business is for you. All you need is a few beautiful items and a few happy customers to gain a strong reputation in your community and be on the way to small business success.

7) Personal Concierge Service

Do you live in a community with people who are extremely busy? You may be surprised how many of these people would be willing to pay someone to do many of their quotidian tasks, such as paperwork, taking care of their home and car, watching their kids or their pets, and much more. This type of business has grown in demand in the past few years and finding employees is relatively easy. You can succeed in this business by setting yourself apart and employing a strong marketing strategy to make sure to let people know your business is available to them.

8 ) Ethnic Cuisine Restaurants

Many communities lack restaurants featuring certain types of ethnic cuisines that would be a tremendous success if they were only to exist! Love to cook? Bring a little bit of your family history to your local community or research an entirely new cuisine and treat your community to a little international flair. Many small restaurant businesses have been amazed by the amount of people who are willing to try new and creative food, and these small restaurant businesses often become hot spots in their cities.

9) Tutoring Service

While tutoring services are becoming increasingly common, the demand for tutors is also greatly increasing. There is an increasing demand of people who want to score better on tests, learn new languages, or improve their grades in school, and the pay can be extremely rewarding. Starting a small tutoring business can be extremely low-cost and easy to accomplish. Usually, the success of a small tutoring company depends on the marketing skills employed by that company – so think outside of the box!

10) Unique Spa Items

Just like several of the other business ideas listed above, unique spa items tend to be popular in many cities because they make unique gifts and they make people feel good about themselves. Because people are always going to need soap, shampoos, and other spa items, this industry is a good investment because it is not going anywhere any time soon. Creating spa items on your own also allows you to be experimental and creative in your work.