Dynamic Business

Dr Craig Emerson, Small Business Minister
In business, just like in other walks of life, if it sounds too good to be true then it probably is. That’s why there is no substitute for seeking out good advice and doing your homework.

Diving head first into a business proposition can be fraught with danger and small business operators in particular take a risk in going out on their own.
While hard work, creativity, talent and persistence can undoubtedly lead to commercial success, there are downsides such as no sick pay, holiday pay or penalty rates.

Budding young entrepreneurs may want to avoid the instinctive feeling to rush at business establishment in favour of research around potential markets, competitors, skills base, financial capacity and developing a business structure. And make sure you keep overheads to a minimum in the early stages of your business. You don’t want a situation for long periods of time where more money is going out than coming in. That’s the way to go broke.

While the Rudd Government is hard at work on a massive reform program to reduce the amount of business administrative red tape, there are still forms to fill out.

The Govforms website www.govforms.business.gov.au contains forms that can be downloaded for everything from registering for an ABN or tax file number right through to various forms from your local council.

As a Government we support a competitive market economy that provides the incentive for risk-taking and entrepreneurship. Those who do their homework will be ahead of the game.
Gavan Ord, business policy advisor, CPA Australia
There are a number of preliminary steps that aspiring entrepreneurs need to consider before going into business. These include:

• Determining whether you are the right type of person to run a business. To respond to this, you need to consider whether you can deal with the demands of being in business, such as long hours, staff problems and complaints. You also need to consider whether you have the perseverance to continue when the going gets tough and the self-discipline to focus on your business.
• Understanding the business you are going into. Do you have the necessary experiences and/or qualifications to enter the business you want to start? Do you need to undertake further training to gain a better understanding of the industry?
• Can you afford the financial risks? Do you have the financial resources to commence or acquire the business and to continue to operate it?
• Are the people closest to you in agreement with your plans?
• Have you undertaken any business training? Have you undertaken any small business courses or spoken to people already in business?

Another important step is to undertake market research. Such research includes:

• Feasibility study: You should research the industry you are entering, your product or service, the potential market, competitors, suppliers, staffing requirements, etc.
• Sensitivity analysis: The likely outcomes of change in turnover, prices and costs should be explored.
• Business plan: A business plan should be prepared incorporating the above two items as well as a range of other information, particularly your potential funding needs, that will help you plan ahead.