10 steps on how to start your small Business
Starting your business can be daunting and very stressful and there are a lot of variables you must consider before you spend any money.
Ask yourself this question: ” Do I have a viable and assured business concept that will generate enough income that will provide for my family’s lifestyle?”
To answer properly you must be able to answer yes to the next 5 points on how to start your small Business:
The business concept I wish to create has been:
- Tested against the market for at least 3 months?
- Generated a profit from sales
- The profit is calculated and is enough to pay for the annual bills.
- The profit is also enough to supplement my income
- I have analysed my research and there is room for growth
If you answered yes then you’re on your way to creating a viable business that will grow and thrive.
However most people starting up will say no, have doubts or will be unsure on how to tackle these issues, let alone know how to start your first business.
In this basic blog we will cover the basic fundamentals . So here we go..
- Starting up requires a lot of hard work.
The reason why I put this at the top is simply because you need to be sure that this is for you. You need to be ready to struggle and put in a lot of hours on top of your working week. To put this into perspective please read the hard truth of setting up your small business from one of our blogs.
2. Do your research.
It’s important to test your concept in the current marketing environment and to see how it will perform. How to start your Small Business
Testing your concept and analysing the results will give you better clarity regarding how viable your concept is. Please read “How to do market research” for a more in-depth info to doing your market research.
3. Find a suitable business name
Your business name should be something that people are searching for.
Obviously, you don’t want a boring name for your business, but you also don’t want to choose something that’s too “out there.” You want your employees to be able to say where they work without hesitation, and you want your name to resonate with your target audience. Click here to read more.
4. Create a Facebook page
This should be used as your first platform to launch your business from for introductory and testing purposes. This is a free way to get your business started and to see how viable it is.It is a good starting E-commerce platform and the shop page works with most website platforms. For more in-depth tutorials on how to create an effective Facebook page click here How to start your Small Business
5. Chat to a mentor.
Let’s face it, going it alone sucks. Although us NZ’ers have the no 8 wire mentality to any problem they face and try to avoid expensive advisors and mentors, You can’t ignore their experience in the daily running of growing and maintaining a business. Good mentors have made costly mistakes, failed in an epic fashion and rose from the ashes to dominate their industry. They have made the mistakes so you don’t have to and good mentors share great and valued advice. If your earning money:
Open a bank account dedicated to your business, keep personal and business spending separate. Keep receipts in a orderly folder, you may be audited later on so best get advice from IRD on how to keep a orderly financial record. on How to start your Small Business
If you’re starting a Limited Liability Company structure then do the following:
- Register your company with the companies office
- Get an accountant ASAP.
- If your earning over $5k per month then get GST Registered
- Open a Business Bank Account
6. If your earning over $5k per month then get GST registered and get an accountant.
7. Accountants are handy, they can take the task of number crunching compliance from you so you can focus on the real issues. As your income increases you will need them unless you have accounting knowledge and know what the IRD expects from you. DO NOT DO ACCOUNTING YOURSELF unless you know what to do, you have been warned.
8. Set your objectives. This is done while business planning, you will need to put this on your board or somewhere you will see it daily. The objectives need to be S.M.A.R.T. orientated to be effective, by having 3 different objectives, you will have a definite direction for your venture to operate with. How to start your Small Business
The 3 Objective types are:
- Operational Objective
“Establish Various Platforms for launch by 1 Dec 20”
- Financial Objective
“Make $1000 monthly sales by 1 Dec 20”
- Marketing Objective
“Grow 20% market share by 1 Dec 20”
9. Start to take action.
It’s important to put your objectives into action and put your strategy into action. By developing a plan for business strategy and marketing towards your desired direction. If you wish to develop your business plan feel free to download our template and feel free to chat to us. Take part in our action plan master-class to take your venture to the next level.
10. Review and take stock
Realize that things do change and you must make adjustments in order for your venture to thrive and survive. You must measure the performance of your action plan and Identify the solutions to what the issue is and why it is impeding your objectives. Be creative and use the tools that are available to you.
These are the 10 basic fundamentals to starting your venture, however my final advice to you on how to start your small Business is this:
If you are going to try to wing it and learn as you go:
Start small, you are going to make mistakes and yes you will have to pay for them. Starting small minimises the financial impact and you can learn from them quickly.
Don’t try to grow too quickly, you need to measure the expense of your success and to be frank when you start for the first time you don’t know what to measure. IRD will tax your profits so you need to keep your book keeping in order, if you don’t have the right documents and don’t submit your returns then the IRD will fine you and assess this for you, often they will want you to pay 5 times more than the profit you earn.
Do this at your own risk.
If you want to grow at pace and make a decent profit:
Get a qualified mentor / coach to assist, probably one that has over 15 years of experience and not only successful but has made the mistakes so you don’t have to.
You may have to invest financially for this to be effective, but the returns are fantastic. Simply because you have experience behind you to grow your hobby into a business.