I am a small business owner ! its been 12 months where should I be!

Starting a business can be exciting, it can be scary but gratifying. As a small business owner you will most likely would have experienced that initial flurry of excitement, and now you are maybe asking yourself what is next? Everybody goes through it, as there are over 576,000 small businesses in Victoria alone. It’s a like a honeymoon that comes to an abrupt end as you climb the next peak to achieve momentum. Understanding some of the challenges that may be encountered will help you to get over the initial set up hurdles. Setting targets go along way to overcoming the startup blues.

Are you suitable entrepreneur material? I was reading an article written by the Finnish Association of Enterprise Agencies which lists some qualities an entrepreneur should have:

“hard-working, creative, bold, work on own initiative, strives for good results, determined, knows how to sell his/her product, prepared to take risks, and can cope with uncertainty.”

Is that you ? Possessing some of these attributes helps as you start your small business journey. While every business is different, they all will have similar traits when it comes to starting.

Cashflow, sales, delivery of services and employees from when to begin employing through to management.

Here are some of the challenges that many faces when starting out:

  • Having a good business plan that sets the parameters to achieve. This includes 30,60 & 90 day targets and realist expectations
  • Coming up with a great product or service, that customers will but or decide better than what they are using. You will need to work hard to break into a market and get sales on the board. A good marketing plan will help here.
  • Sticking to it to get somewhere with your small business. It’s easy to feel like you aren’t getting anywhere. Sometime businesses can fold as early as six months if you aren’t strong enough to stick to your plan
  • Working more extended hours in the business more than you expected or was doing when working for a Boss
  • Getting through the frustrations of being consistently rejected by customers and not getting your message accepted.If you are not selling a recognised brand, it can take time for customers to think you are going to deliver support last.
  • A shortage or underfunding of initial capital and cash flow. Money, when you start, may be in short supply. Work out how much you need to last 12 months in worst case scenario
  • The challenge of hiring competent employees as employees that don’t perform will hold you back
  • Knowing when to fire bad employees when they don’t work out
  • Having to wear so many hats as a small business operator. It’s all up to you. Set a plan and make it happen. Grow the business at a pace you are comfortable with.
  • Managing your time to get the most out of every day and feel like you are moving forward
  • Maintaining that work/life balance when it comes to energy. Keeping everybody happy and having me time
  • It’s easy to get lost when starting a small business. It usually takes three years to get a real business working and delivering consistent results. Set your business plan and understand that not all will work out the way you expect. Talk is cheap. People who say they will support you may not be the first ones to do so. Look for support from family and bring them along on the journey. Most of all build the sales pipeline and manage cash flow. Good luck with your project it will be very rewarding.

We have helped many small businesses in local Brighton, Bentleigh and Moorabbin area. We have a passion for small business.

About Geoff Gartly

Geoff has been assisting businesses with their taxation and business affairs for many years. His practical advice has assisted his clients to grow their businesses and plan their financial future. To contact Geoff please call 039597 9966