A small business owner’s life is normally filled with drama.
Buy new software… drama. Ask for a loan… drama. Need to do a business plan… drama. Marketing program… drama. That was how I felt when I started my first business at 2003 and I think, if possible, it has become even worse for businesses today!
Small businesses make up over 80% of overall businesses in Australia. One would think nurturing such an integral part of the Australian business portfolio would be a priority. Well, it is in a way. It is more of a target: a target for sophisticated software companies, a target to people who dropped their 9–5 jobs and decided they can be coaches, a target to marketing companies telling you that Facebook is the way to go but don’t teach you how to measure your ROIs and some of the worst I’ve seen, cheap web site developers that most of the time are offshore, offering you a quick web build, that at the end you might not even own yourself, so you are stuck with them!
This might explain why approximately 76% of small businesses reach the 5 years milestone with more debt than day one, or even worse, close doors because trading is not a viable option for them anymore.
Anyone that tells you that starting a new business might not be as hard as you think is lying. You need minimum 3–5 months of liquidity before you even start. Initially you need to sacrifice your lifestyle since 6 figure wages won’t happen overnight. It might take years to build, and if you’re sucking the life out of your business before it even started you won’t get to have many birthdays to celebrate.
Drama will get your blood flowing, you need the drama, but… it needs to be effectual drama.
DON’T. LET. IT. DRAIN. YOU.
From my experience, with both my business and other businesses I’ve started, you need to choose your battles wisely and there are simple stages you need to achieve before starting any business:
1. Start with market research, first find out is your idea viable? Is your product needed? How unique is your service?
2. Conduct a financial health check. Can you support yourself? And for how long? Can you financially carry the production or importation of your product? Can you leave without a wage? And for how long?
3. Then price it! Price your inner genius, your service, or your new invention. Sounds simple but if you get this part wrong, the whole pyramid will collapse on your livelihood. A big mistake that companies both small and large are making at times, but one of the easiest to solve.
4. Market market market!!! Start humble, but market and brand yourself because no one knows where to find you. Website, broadcast, podcast, Facebook and many more options are out there, find what is in your budget and flow with it. Maintain a corporate look and have a plan of attack!
Starting a new business is not easy, but it doesn’t need to consume you! It can get your blood flowing but it should not get your blood boiling. We provide consulting for new businesses, and existing businesses too. This includes leadership development and more.
We can help you control the drama! Reach out for a free session here.