In the final post of our three-part series, we hear about the highs and lows of starting your small business from real-life small business owners, sharing their advice and experience first hand.
We hope that these words of advice can help you through those initial teething problems when you are first starting out, can teach you how some of these issues can be avoided, and what you need to do to get your business growing faster!
Let’s dive into part three of some of the most valuable lessons and tips you can take on board when starting your small business…
Previous parts:
13. Starting your own small business is like owning a car
If I had one piece of advice for new small business owners, it would be this: starting your own small business is like owning a car.
When you take possession of a new car, it pays to do your research. It takes a big injection of effort to get off the start line. You must keep your foot on the pedal at all times if you want to continue moving in the right direction.
You’ve got to keep control of the wheel if you want to stay on track. You’ve got to know when to change gears to keep accelerating forward. There are going to be issues, but regular checks will reduce the likelihood of major catastrophes. Every now and then you need to stop, refuel, and service your engine to maintain optimal performance.
Every aspect of a new business takes effort. It takes a huge effort to launch successfully. It takes effort to continue to grow. It takes effort to maintain a status quo. The moment you take your foot off the pedal, you’re going to slow down.
When things are running well, it’s easy to relax and rely on cruise control, but even then, the wheel has to be held, and the pedal has to stay down. When things are running rough, the best way out is to call in the support crew or engage the safety winch to help you to safety.
Running your own small business can be incredibly rewarding, but you must be willing to invest in the upkeep. If you do, you can enjoy the spoils of a high-performance machine for many years to come!
Advice From Lisa Newman-Morris
With over 30 years of experience in coaching, training and mentoring clients to success in life, fitness, health, sport and business, Lisa’s passion is working with aspiring small business owners and entrepreneurs to create, build and grow their business. Check out Lisa’s website.
14. Measuring certain financial ratios can drive significant efficiency in your business
Our business was not always going so well. We have had some good times and some tough times.
The biggest thing we learned the hard way was how to measure certain financial ratios of our business.
Simply by looking at these monthly, almost guarantees them to improve. It means you think about them and management can identify what is important.
Ratios like wages/sales, advertising/sales, website conversion rate etc. all can drive significant efficiency in your business, so you need to measure them monthly or even weekly.
Advice From Dean Salakas
Dean is the Chief Party Dude at The Party People, Shop which has the largest range of party supplies in Australia.
15. Cash flow is the most critical element for any small business starting out
In my view, and it’s not just a naked sales pitch, cash flow is the most critical element for any small business starting out. I’m not too embarrassed to say that in the early days, we had our own share of juggling money to ensure we could continue to provide funding to our clients when requested, so when a small business is having problems with cash flow, I get it. I really do.
Whether it’s paying suppliers, staff, the ATO, or whomever, cash flow is critical. Chasing sales is especially important, and making sure that you get paid for the work you’ve done through proper credit checking and proper account management is important too. But running out of cash to pay staff brings everything to a grinding halt really really quickly.
Advice From David Cately
David is the managing director at Invoice Money, who bring fast invoice factoring and cash flow finance solutions to keep the cash flowing in your business.
16. You want to approach every task as if you have a boss standing over you
When starting a new business, be it from scratch, taking one over or even buying a franchise, it is always a huge adjustment- especially if you have not owned or operated a business before. Transitioning from an employee’s mindset to that of a business owner or even entrepreneur (these are not the same) can be challenging, but it is essential.
At the same time, you want to approach every task as if you have a boss standing over you, with the KPI bar raised high. It is easy to grow somewhat complacent working for yourself, but treating your ‘job’ within the business with the same commitment (or greater) as working for someone can ensure that things actually get done.
While the mantra says – cash flow is everything – without making this untrue, there are also other things to ensure a healthy business. Of course, the golden rule is to spend less than you earn, save 10% and hide it away, but too often business folk (and especially new business owners) are focused on their core skill set, on saving money and end up trying to do everything. Sure, if it is your first business and you want to keep cost low, pick up the broom and sweep out the workshop.
When it comes to doing your social media, your marketing, getting free PR, building your brand and the standing of your business within your target market, don’t kid yourself- you will not become an expert overnight. This is especially relevant if it is not your core skill set (as is true for most business owners). We live in a world of specialisation and global commerce even for the smallest of businesses.
Advice From Erik Bigalk
Erik Bigalk is the founder of Smart Solutions, a brand communication, PR and marketing firm; co-founder of lead-to-sales conversion tech start-up LeadCaller, and an internationally published business writer.
17. Don’t be afraid of failure
I guess my advice to people who are just starting their business, would be: not to be afraid of failure.
Some of the most successful businesses out there have experienced all kinds of downs, but what kept them going is that their owners didn’t give up on their dreams- they just reassessed their situations, re-adjusted their goals and kept moving forward.
Another thing I would suggest is to set achievable and measurable goals. Every great business starts from a dream, but when it comes to entrepreneurship, results are what matters.
So, you need to brainstorm, write down all your ideas and things you want to accomplish, and draw a realistic timeline for all the actions you need to take. Being organised can only help you be more efficient and get to the results part faster.
Advice From Jane Wilson
Jane Wilson manages the Melbourne branch of Fantastic Cleaners and runs a small personal blog, Modern Housewives, where he writes about home improvement, tips on raising children and more.
18. See your own shortcomings, delegate and outsource
Launching a business is difficult, but it can be made much easier if you can recognise your weaknesses. No one is good at everything and being able to know what areas of the business you’d be better off getting assistance with can save you from a lot of stress, wasted time and poor results.
For example, I am ok with the financial aspects of the business, but when it comes to putting together more complex financial documents such as cash flow forecasts, I enlisted assistance. The result was of high quality, accuracy and a far more thorough financial forecast than I could have produced.
I am, however, fairly skilled with digital marketing, so this is where my time is better spent, and I know the results will be sound.
The ability to see your own shortcomings, delegate and outsource when needed are important skills to achieving success. I know many business owners who struggle with delegating and as a result are at risk of burning out because they are trying to do everything.
Advice From Jon Ogden
Jon Ogden is currently the Managing Director of Youth Lab, a leading Perth based cosmetic injectable and advanced dermal therapy clinic. He was a former Head of Digital at a leading digital agency with over 10 years digital marketing experience.
19. Recognise the difference between relevant advice and emotional support
It’s natural for the loved ones in our lives to be concerned about our mental and financial well being. It’s a warm reflection of those relationships, and it’s why we turn to these influences for all kinds of support. However, as a small business owner, one has to have the clarity and strength to sift through these to identify and heed the opinions and feedback of those most credible in the fields discussed.
For instance, the advice received from a friend who is an accountant about financial services should carry more weight than that of a relative working as a sous chef. In turn, the sous chef’s knowledge and opinions of your food products should be respected to a higher degree than that of the accountant’s here.
Everyone will have an opinion about your business and will seek to benefit you as best they can. This always comes from a place of love, which naturally tends to skew towards risk-aversion when dealing with loved ones. It is important though to recognise this and to subsequently consider the advice of those with adequate experience and/or credentials who are more credible when addressing the relevant issues of your business.
Advice From Aaron Collins
Aaron is a business consultant at Economic Prophets specialising in retail/hospitality sales and customer service.
Key takeaways
That’s a wrap for our three-part series, and we hope that these pieces of advice have helped to keep you inspired to start your own business.
Some of the main things to keep in mind:
- Learn to delegate and outsource – Know what your areas of weaknesses are and get assistance with the areas which may not be your strongest
- Do not be afraid of failure – Ride the wave, take the highs with the lows and brainstorm about the goals, direction and things you want your small business to achieve
- Keep an eye on financial ratios – Measuring and understanding the different ratios( wages/sales) of your business can have a huge impact on the short and long-term efficiency of your business
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“The opinions expressed by BizWitty Contributors are their own, not those of BizCover and should not be relied upon in place of appropriate professional advice. Please read our full disclaimer."
