More and more working Australians are turning to working for themselves, which offers a level of freedom and independence and more importantly, a chance to be successful. Your future is in your own hands when you are at the helm of the business, yet it isn’t all plain sailing, and with that in mind, here are a few common mistakes that newbie entrepreneurs often make when setting up a small business in Australia.
- No business plan – You are doomed to fail if you don’t have a sound business plan; the plan is your guideline and needs to be consulted often, checking that you are on track. Invest as much time as you need to create a comprehensive business plan; you can find templates online to get you started. Creating an organisation takes planning and until your business plan is complete, everything should be on hold.
- No market research – Sadly, there are some people that set up a business without doing any market research and that usually leads to disaster, as the product/service is not insufficient demand or they are overpriced. Hire an agency to do some market research and you won’t regret it. If it turns out that the numbers don’t add up, you may have to consider finding a different product.
- Zero marketing – If you think that word of mouth is enough to launch your business, think again. Contact a top-rated Australian digital marketing agency and let the experts create a winning digital marketing plan. Online marketing can be very complex and unless you happen to be an expert, leave it to the professionals.
- Over-extending your budget – A new business needs many things and it is oh so easy to end up in the red; all you need is a few unpaid invoices to put you in dire financial straits. When calculating your start-up costs add enough money to support the business for the first 6 months.
- Poor management – Every business needs to be properly managed and if that is not in place, the operation might have a few teething problems. If you are not management material, hire an experienced person and give them the authority to manage the enterprise. It is important to recognise your limitations and never forget that learning is for life.
- Failing to register the business – This could lead to getting into trouble with the authorities; make sure that you comply with the many laws, rules and regulations and take out some business insurance. By law, every Australian business must have insurance to cover any compensation claims that might arise. For more information on business registration, search online for Australian government websites.
- Bad customer service – Some businesses are stretched and this impacts customer service; nothing can destroy an organisation like bad customer service. Bad news spreads quicker than good, of that there is no doubt and if you are unsure about how your customers feel about your service, start getting accurate feedback before it is too late.
- Failing to reinvest – There are times when as a business owner, you need to reinvest to shore up your organisation and if you fail to recognise this, there could be repercussions for your business.
- Inadequate insurance – A single compensation claim could bankrupt your business and if you do not take out the right type of business insurance, you are taking unnecessary risk. If you would like more information on business insurance, talk to an experienced commercial lawyer, a professional who can show you the potential risks and how to take precautions.
The world of commerce is indeed a complex one and if you are planning to set up a small business here in Australia, make sure you do your research and cover every angle. Creating a successful business is no easy thing and we hope that the information contained in this article goes some way to helping you make all the right decisions. If you have a great business idea, make sure that you meticulously plan every aspect of the project and you should see a degree of success.
