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Ever thought of setting up your own business? Maybe you’ve dreamed of turning a hobby into a side-hustle?
A 2022 survey conducted by the National Australia Bank (NAB) revealed that 41% of respondents aspired to owning their own business, but only about 9% took the plunge into entrepreneurship.
Some reasons for not going ahead included difficulty securing funding, regulatory complexity, economic instability, and the need for a regular income.
These are all valid reasons, but nothing insurmountable if you’ve planned well. Here are some ideas you may not have considered, to get you up and running.
Government assistance
Both state and federal governments have a range of grants and assistance packages to help you get started in business. Schemes can vary depending on where you live and the type of business you’re setting up, so to find out what’s available to you, check out the government’s Grants and programs finder.
Training and workshops
Many local government areas offer free education programs aimed at small business operators. For information, visit your council’s website, community noticeboards and local papers and newsletters for program guides.
Some state governments offer free one-on-one information sessions with business advisers. Get onto Google and search for small business support in your state.
Consider finance
It’s always preferable to avoid taking out a business loan, but if you do need some start-up capital, it pays to do your research. Business loans come in all shapes and sizes with various credit facilities, fee structures and Ts & Cs attached. Some even throw in time with a business specialist to answer your questions.
Do some old-fashioned leg-work. Visit the lenders in their offices to get the run-down on what they’re offering, and don’t be afraid to tell them what you want.
Cash-reserve is king
Building a cash buffer against unexpected expenses, or reduced income is vital. Speak with an accountant or financial planner to determine how much you’ll need and where to park it so it works for you while being accessible when needed.
Stock management
If you deal in physical goods, inventory management is a delicate balance. Do your homework and find a system that can help you maintain appropriate stock levels. You definitely don’t want:
- too much stock; this affects your liquidity,
- not enough stock; this affects your ability to service customers.
Cash flow
Possibly a start-up’s greatest challenge! Try these tips for keeping the cash flowing:
- invoice immediately after completing the service,
- reduce payment terms (30 days, 14 days, 7 days),
- consider incentives for prompt payment,
- offer online or phone payments.
If, after a number of attempts, you’re having difficulty getting an invoice paid, the government provides a standard letter of demand, along with advice around how best to use it. Visit the Business.gov website for this and other free tools and templates.
Control spending
Identify unnecessary costs by regularly auditing your spending and eliminating wastage.
For unavoidable spending like buying stock, look for bulk-purchasing discounts and negotiate better terms with suppliers. Don’t be afraid to shop around and find more cost-effective suppliers, or those that include free delivery or other incentives.
It’s true that starting a small business is exciting, ambitious and comes with more than its share of challenges. But it can also be immensely satisfying.
According to Lawpath.com.au, about 20% of small businesses fail in the first year, which only means that 80% don’t, right?
With good planning and advice from trained professionals you can be among the successful 80%. So ask questions, seek help, and set yourself up for future success.