Free advice for people thinking of starting their own business

[LucasArthur]

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This entire thread is quite thought provoking and is one that has its time and place, although one must also look at it through the eyes of the OP (lots of threads are like this) and what it is that they are experiencing or have seen that has brought this to the fore..

What i mean is not negative, far from it, as you can tell from the other replies they seem to be from quite sound (except Bert.. LOL) operators that have a basic understanding of things… The message i am trying to convey is that the opposite also applies, there are always exceptions to the rules etc etc..

Such as, some large financial institutions that come to the fore from opportunity.. They may not have the business acumen nor the know how, but have the opportunity/idea/or product that will ‘rule the world’ so to speak..

This could be applied to IT startups, large transport companies in Australia, Banks around the globe, Financial Services Operators that came into existence as STAGE COACHES and so forth.. Lots of these legends of the business world will tell you first hand that they didnt know what they were doing, but an opportunity presented itself that they had to rum with.. Same can be applied to a handy tradie that works tirelessly for his/her clients, and yet the books are a little much….. Or the other side, you could be awesome at bookwork and overthink the entire process of going into business that the business never gets off the ground…

Its one of those situations that some operators are awesome @ business and some are awesome IN the business behind the scenes.. Who are we to mitigate the viability of said person.. This takes me back to the original thoughts, we need to review this from the OP’s meaning and not our own interpretation of the post… Which, as you have read above, i personally struggle with although understand…

Its a bit like coming back to the forum day in day out with the same questions, from first time posters, that ask (numbered for effect no particular order nor is it a comprehensive list):
1. i have no money (maybe 10%) deposit for a business loan – how can i get a bank to lend me the rest?
2. How do i build a website? DOH!
3. Which web site do i use?
4. Can someone tell me the best suppliers in industry XXXX? (god i love this one)
5. Can i pay someone commission only? Love it!
6. So, i just bought XYZ, how do i record this in my software and what effect does it have on my 123?
7. Can someone give me some free advice and i will never thank anyone for it?
8. ok i will stop….

Anyways, i got sidetracked.. this was going to be a 2 line post, as usual it wasnt.. LOL

Be well everyone…

Jason

Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888

[Chrispro]

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Haha. all very true Jason.
There are certainly numerous extremely successful people who started with an idea and not much more. I have no formal training (didn’t even finish high school, let alone go to uni) so I must admit I often find myself gravitating toward those people (i.e. street smarts, not book smarts). However I think most of them (certainly the ones I can think of) have a decent dose of common sense. I like to think that possibly I have some too (though others may argue differently). But I feel that it can be severely lacking in a lot of people these days who jump in having thought little about the possible pitfalls, etc.

[James Millar]

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I think there is a common gene in every successful entrepreneur that 99% of the broader population do not have. It starts with the ability to see a unique business opportunity when no one else even looking (that itself requires a naturally inquisitive mind). Then you need a thirst for innovation, a talent for problem solving, great analytics and highly objective judgment. Those attributes combined cannot be taught. Many try and many think they can read and learn but they can’t. Sure lots are inspired when reading about Richard Branson but most will always lack that rare combination of skills needed to make a silk purse from a sow’s ear.

That being said, those that succeed with little to no formal training or education are definitely more of an exception than the norm. Analytical financial skills facilitate more objective and accurate decisions. Like it or not, stakeholders will take you a lot more seriously if you have financial expertise as a founder. So I would say to anyone considering starting a genuine business, make your life easier by getting a good education and by spending a few years learning and making mistakes at someone else’s expense.

Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900

[LauraFisher]

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A lot of issues stem from over-investing and under-testing. A lot of information about whether an idea is going to be successful or not can be gleaned from talking to people, asking question, producing examples/prototypes/demonstrations of your service/product and asking for feedback.

It’s common thinking that “build it and they will come” but unfortunately even the best products and services can fail due to a lack of market, or that the market isn’t ready yet.

It’s so important to capitalise on the motivation and enthusiasm that newbies have for their idea, but they need to be smart and test test test iterate iterate iterate. You don’t actually need that much business smarts to work out in the beginning whether you have a market and an idea that will work – and that’s one of the most important things to creating a successful business.

As another person said, they hired a good bookkeeper and accountant and they looked after the financial aspects of the business. You can’t hire someone to create the actual idea for you – that’s all you and people shouldn’t be afraid of jumping in because of the other more technical aspects of business.

But with all that said… once the idea is born, and you’ve decided to jump into the deep end, it would be so disappointing to see a great idea fail because of the lack of technical business skills. It’s about knowing when to ask for help – not too soon, but not too late.

[Hana Lucidica]

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It’s incredibly inspiring every time I see people determined to go after what they believe. Every successful business takes time of loneliness and perseverance, a good team, and staying true to values. I’ve also seen many entrepreneurs unable to grow their business because of resource limitations.

[LJP Business]

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Chrispro, post: 238523, member: 84887 wrote:

The very first thing you need to do is have a long hard think and work out whether you really should start your own business. Do you have the skills to do so? It may sound a bit silly but I’m completely serious. To expand on this: in my small business career I have a come across a LOT of people who run their own business – but not well. There are numerous tradies (for example) who a few years after finishing their apprenticeship say to themselves “I can start my own plumbing business and keep all the profits instead of only getting $x per hour and the boss gets the rest”. Sounds pretty simple. Yet so many of these people are good plumbers, but not good business people.

I think the key here is to work out whether you’re the person who should be working IN the business or ON the business. It has been said that a lot of small businesses don’t reach the heights they could because the owner was too busy working in the business rather than on the business. This is true, however in many cases I think the real issue was that the owner was never the right person to be working on the business in the first place. I can’t count the number of times that it has taken a particular trades-person many months to send an invoice; or on the other side of things when I have supplied something to a small business and it has taken many months to get paid (not because they didn’t have the money but basically because they never got around to it). Needless to say, this is not a good way to run a business.

So, what’s the point of this post? Well, please, before you start a business (or when you’re in the process of doing so) you really need to take a look at yourself and honestly assess whether you have the skills to run the business successfully. You might need to ask others who know you well for some brutally honest assessment as well. It could save you a lot of headaches. Oh, and just because your better half is going to do the books for you does not mean they are an accounting or tax expert!

Should this post be viewed as something negative? No – I don’t think so. It’s about being honest with yourself. Review what your strengths and weaknesses are. And in doing that you might realise you’re not the right person to run your new business. Does this mean your business dreams are dead and buried? Absolutely not! It means that if you are still convinced about your business idea you might need to think about other ways of making it happen. Like bringing in experts to do your IT, accounting and marketing. Or think outside the square a little – maybe you are mates with a business person who knows you’re a brilliant plumber and he might be interested in coming on as an investor and providing a business manager to do the stuff you’re not good at.

Food for thought I hope…
Some very valid information Chris.
This is one of the main reasons i’ve started up a new small business.
LJP Small Business Planning is a new business based in Perth offering services to aspiring business owners who don’t know where to start. LJP offers detailed write ups of business plans to best suit the client’s particular industry. Our categories range from information on marketing and legal structure to SWOT analyses and staffing arrangements. All clients are given a free quote before commencing.

We can be contacted by email at [email protected] for any enquiries.

[Chrispro]

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Very good LJP. All the best…

[PNGsolutions]

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This was a good read, I’ve had my ups and downs running my own plumbing business but we are really hitting the ground running now!

For the plumber Perth can rely on, call PNG Solutions! We provide the highest quality plumbing services at affordable prices in your local area. Speak to a professional for a quote today!

website: http://pngsolutionswa.com.au/
contact: 0438482202

[Joli]

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LucasArthur, post: 238668, member: 34537 wrote:

1. i have no money (maybe 10%) deposit for a business loan – how can i get a bank to lend me the rest?
2. How do i build a website? DOH!
3. Which web site do i use?
4. Can someone tell me the best suppliers in industry XXXX? (god i love this one)
5. Can i pay someone commission only? Love it!
6. So, i just bought XYZ, how do i record this in my software and what effect does it have on my 123?
7. Can someone give me some free advice and i will never thank anyone for it?
8. ok i will stop….

The answers to these questions can easily be found by either searching this forum or via internet search, so it can be a bit tedious reading the same questions over again. However they’re such basic questions of which the answers should be (and usually are) freely available.

It’s a good thread because most people thinking of starting a business have no idea which questions to ask of themselves or of others and I mean the real nitty gritty questions.

[bb1]

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Joli, post: 254628, member: 36196 wrote:

The answers to these questions can easily be found by either searching this forum or via internet search, so it can be a bit tedious reading the same questions over again. However they’re such basic questions of which the answers should be (and usually are) freely available.

It’s a good thread because most people thinking of starting a business have no idea which questions to ask of themselves or of others and I mean the real nitty gritty questions.

This comment will most likely be deleted, but lets have a go anyhow.

Yes the answers to these questions are often available on this forum, and most likely other forum’s, but the big question is will they be the right answers. Unfortunately we are all experts, and our thoughts and rambling must be right. There have even being times when the ”experts” (ie. accountants), have gotten the answers wrong.
There was one this week alone where 2 accountants gave 2 conflicting answers.

The sad part about is that the forum moderators and by implication I guess the owners, don’t see it as a requirement that incorrect information be highlighted. in fact I have done it a couple of times and the response was deleted. Why let the truth get in front of some instant experts comments.

[LucasArthur]

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Joli, post: 254628, member: 36196 wrote:

The answers to these questions can easily be found by either searching this forum or via internet search, so it can be a bit tedious reading the same questions over again. However they’re such basic questions of which the answers should be (and usually are) freely available.

It’s a good thread because most people thinking of starting a business have no idea which questions to ask of themselves or of others and I mean the real nitty gritty questions.

Apologies, i am not sure i understand.. are you saying we should see these questions time and time again, or should there be stickies for them.. I do agree whole heartedly that the questions i posed out of interests sake, are readily available throughout this medium and others and….. well, i lost track again..

Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888

[Paul – FS Concierge]

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It is a useful thread – let’s please get it back on topic.

[Author]

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