Starting a business from scratch
When starting a business from scratch, there are a number of keys
- What makes you better than anyone else at what you want to do?
- Before you start with any business, ask yourself why is my idea going to work better than what is already available? If it priced better? Is it better quality? Is it more convenience? Do I have a reputation that is better than what is there? Is my new product better in some way to what is already available? How is this advantage sustainable?
- What’s in a name?
- Your business name says a lot about you. Will the business adapt over time? Will this name meet the needs of the future or only the near future?
- When thinking about a name for your business, it is best to find a name that is available for each of the following:
- Business Name
- Website Name (.com.au, .com)
- 1300 Phone Number
- Chart of Accounts
- You need to design a set of accounts that will not only address your legal reporting requirements but also to manage the business
- You cannot do everything yourself. What are your strengths? What are your weaknesses? How can you outsource the weaknesses? What skill sets do you need to complement your own? There are many ways to fill this set. You can outsource or hire part time or contract labour.
- Who are your customers going to be? What are their demographics? This will help to work out where you will market to. This will dictate where you market. For instance, you are unlikely to market a travel app for 20 year olds in a funeral parlour publication. Whereas, you may advertise it on a travel website.
- Know the legal issues and licensing requirements for whatever you wish to setup.
- Can you protect the intellectual property? In some cases, this may mean protecting the IP by law. In other cases, it may mean only allowing certain people to know certain parts of the business.
- How do you price your product for your market in order to get the highest profits?
- What stock levels do you need to keep?
- What are the key drivers for your business and how do you maximise these?
- Money/Cash Flow
- Where’s the money coming from?
- How are you going to ensure cash flow whilst the business is building?
If you are starting a business from scratch and need help, then speak to us.