Starting In Business

The First Five Important Steps

This article was originally written for the individual who is thinking of starting in business or the person who has just made the decision to get started. However, after writing it, I realised that it is just as relevant for the experienced business owners amongst us.
No matter what our level of experience, we need to be continually reviewing and revising our business plans. So.....here are the Five Basic Steps we all need to consider when going into business.
How many of these have you forgotten?

Step One: The Idea

• What sort of business do you want to start?
• Why did you choose this particular business?
• Will you buy an existing business or will it be built from the ground floor up?
• How will it make you feel?
• Why will it make you feel that way?
• Are you sure that this is what you really want?
• What hours will you need to put in?
• Is it a 'seasonal' business?

Step Two: Research your Idea

• Is there a market for your product/service?
• Is your product in demand? Are there more people demanding your product or service than there are providing it?
• Have you surveyed your target market to see what they really want or need?
• Who is your 'ideal' customer/client?

Step Three: Workout the start up costs

• Will you be working from home, an office or a shopfront?
• Will you need to buy a vehicle, a computer, furniture etc?

• What licences/accreditation/insurances will be required?

• Will you need employees? Do you know what your legal obligations are to your employees?
• Will you hire Contractors?
• What are the hidden costs eg. rent, electricity, phone bill, water, advertising, office or shop fitout?

Step Four: Write your Business Plan

Your Business Plan should focus on:
• business structure (eg. Sole Trader, Partnership, Company, Trust),
• your business name,
• what you want your business to do for you,
• your Unique Selling Proposition
• what price/s you will charge,
• how you will advertise/promote yourself,
• where your customers will come from,
• when you expect to start making a profit.

Step Five: Keep Good Records

• Do you know what business records you need to keep?
• Do you know what cash books or Record Keeping software you may need?
• Do you know what tax deductions you can claim?
• Will you use an Accountant/bookkeeper?

Summary

Until you have addressed these business basics, you really can't be sure that you have a viable business.
This does not mean that your business will fail. However, ignoring one or more of these steps reduces your chances of long term business success.