In Australia, in 2015 there were nearly 2 million small businesses making less than 2 million dollars a year, with an active GST role according to the Australian small business and family enterprise ombudsman. Why is this so? What makes people want to start their own businesses? Well, there are many reasons. One, is a need for independence and a drive to succeed not as a follower but a leader. Another reason is that they want to pursue that passion and create a product they love and some just do it for flexibility of work hours and more spare time.
These are still just a few of the reasons why people want to have a small business. However as attractive as it may seem there are still many things to keep in mind, especially if you are interested in starting your own small business.
Do Your Research
You should learn about the industry you plan to enter, any regulations that need to be adhered to, the basics of running a business, how to acquire short term loans and more. Knowledge is crucial to survival. If you need to survive in the industry beyond a few months you need to be well informed about everything. For example, you need to know the difference between a short term loan and a long term one and in which situation you would choose one of them.
If you ever need a loan, you to have a good credit rating, so you have to always be vigilant and pay off any other loans you have due. Also you have to always ensure that you follow regulations because ignorance is not an excuse in case you get taken to court.
Don’t Overcomplicate Things
When you are starting up, you do not have to start producing a variety of products or offer so many services. Doing so will make things harder for you as you need to oversee all of this while handling the pressure of starting a new business. These two combined can headache inducing at best, ruin your business at worst. Simplicity is key to surviving in the industry. At least in the first few months. Start with a simple product or service concept that works and people have a demand for. There is no use in producing a product that nobody wants.
Try doing a small survey before you start production in full force to ensure that people want and like your product. Once you have a very good product or service, you would find yourself attracting customers and gaining a loyal following.
Don’t Cater To A Non-Existent Market
Sometimes businesses produce service or products that nobody wants. It could be a mind-blowing product but it would still sell horribly simply because there isn’t a demand for it. What you need to do when you start a business is to first cater to a niche. Once you find a niche that likes what you offer, you could then start promoting your products and services elsewhere.
In the end, running a business is tough but by paying attention to the above, you can avoid the mistakes that could seriously impede survival.