New beginnings
If a startup is your new year's resolution, make sure you've done your homework.
Tuesday, February 21 2012 || Comment || BY Julian Smith
Though the current economic conditions are testing, there are a number of things you can do as a new business owner to ensure you go from startup to success.
Most potential startups expect they’ll have to do a lot on their own, so those that pursue their dream usually have an independent spirit that sets them off. That shouldn’t mean you are on your own. Your new business will be better off if you start by getting some help. So, before renting your premises, sign writing the van or ordering product, start with some really good advice.
Talking to an accountant would be a good first port of call, not just because they can help you navigate the many regulations you need to be aware of as a new business owner, but also because they can provide you with benchmarks for other businesses like yours – what they’ve experienced, how they are set up and the kinds of challenges they face.
One of the first things any advisor will encourage a potential business owner to do is plan. Having a passion for what you are doing is very important. That will carry you through the late nights and the long weekends, but it’s not a substitute for a solid plan.
Having a way to measure your progress – a good financial and accounting system – is also vitally important. There are so many inexpensive options for business management software online and for the desktop, so there is really no reason to start a business without a system in place.
Testing the water is also a good option, particularly for first time business owners. Rather than handing in your notice as soon as you can, spend time on the business development process. Research the area you are considering, the terms you can get for things like leases and equipment, the size and potential of the market and, of course, the competition.
But the number one piece of advice for the business class of 201, is start a website. According to MYOB Business Monitor research, businesses with a website are proven to do better – on average earning over 5% more revenue than their competitors – and are more resilient.
We need to do all we can to celebrate and encourage 2012’s startups, who with a bit of help, some good planning, and smart technology, could be the world-beaters of the next decade.
Top five things to do before starting your new business:
Get advice
Get help from an accountant, business advisor and/or bank manager.
Write a plan
Make a thorough and honest assessment of what you want to do and how you are going to achieve it.
Do your research
Check out the market, the costs and the competition.
Set up a system
Because you will not be starting your business to do the books, set up a good software system so they will be taken care of.
Get online
Get a website and tell the world where you are; it will improve your business by 5% and put you ahead of two thirds of the competition.
Hi
Thanks so much for stopping by and passing on such great advice. I agree completely - there is no point promoting your business (on or off line) if you don't have a process to follow up contacts from clients or prospects. One area that many folks sometimes overlook is actually forgetting to put contact details on their website - it's a good idea to have at least 2 different contact methods (phone & email) - we all have different preferences for how we like to make connect.
Cheers
Julian
Posted by Julian Smith at 12:23 on February 21, 2012
Speaking strictly for myself and not in my role as Acting Deputy Editor for Unlimited, I've had problems intermittently getting responses from some New Zealand businesses through their websites from the time I moved here in late 2009. Even obvious things, such as store hours and contact information, are sometimes mystifyingly hard to find. Imagine what companies could do with just a tiny bit of coaching and common sense, especially once they realize they may lose a customer if their online presence is left unattended.
Posted by Simon Eskow at 14:13 on February 22, 2012
Hi Simon, thanks for sharing your experiences. The potential for NZ based businesses to grow by getting online and accessing the digital economy is enormous! The same sales rules apply online as they do offline - be easy to find, easy to contact with and be responsive! Here's hoping that in 2012, as many Kiwi businesses take advantage of the opportunity!
Posted by Julian Smith at 07:09 on February 22, 2012
Agree with the suggestion to get online, but that is not enough. You need to make sure that you follow up on requests for information from the website. It is amazing how many Kiwi businesses have e-mail addresses or contact forms and do not reply to the queries - don't bother posting the information if you don't intend to monitor it.
Posted by Anonymous at 10:32 on February 21, 2012
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