Small Business Foundations

There is more to owning a business then just being good at what you do. People, excited about their business prospect, often dive in head first without taking the time to concrete a firm foundation for their business to build on.

1) Know your product or service

It’s unlikely that you would apply for a job as an IT specialist if you’ve never even turned on a computer before. Likewise, to be successful in your small business you need to know what you’re offering the consumer inside out and upside down. What does your product offer? What makes it so special that it will make consumers leave their current suppliers for it? What’s the demand like for your product? It also helps to know your competitions products/services so that you can offer comparisons to consumers.

2) Learn everything you can about running a small business

A small business is more than just selling a product or service. It’s about marketing, accounting, reporting, taxation, time management and having effective communication skills.

3) Make a commitment

Acknowledge that it will take a lot of effort and time in the establishment stage. Enlist support from your family and friends and ask them to keep you encouraged and motivated. It’s important to understand that in the first stages you may receive many setbacks such as expense blow outs, little consumer awareness etc. When these setbacks occur, remember that for every negative there is a positive and with hard work and perseverance these things can be sorted out.

4) Develop your business plan

A business plan is like a blueprint, the foundation on what you build your business. A business plan is an analysis of your product or service, the competition, the businesses strengths and weaknesses, how you intend on marketing you business, and anything else relevant to your business. It’s necessary to have a business plan if you wish to obtain financing for your venture. Check out www.business.gov.au for free downloads of business plan templates.

There are many organizations that have been set up to help small businesses get up and running. It’s worthwhile checking out what is on offer in your local area. Knowledge is power and the effort you put into setting up your business may provide you with the edge you need over your competition.

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