Top tips for new entrepreneurs

Top tips for new entrepreneurs

Top tips for new entrepreneurs

27 Jul 2021

Top tips for new entrepreneurs teaser By AR Advisors Director Adam Passmore

Extra caution is probably wise in the aftermath of 2020, but this year’s batch of budding entrepreneurs should not be afraid to jump in.

Why?

For a start, a good idea is a good idea. Pandemic or no pandemic. Plus, there’s a new sense of energy in terms of innovation that’s making us all more receptive to doing things differently.

Western Australia is feeling relatively upbeat. Start-ups can capitalise on this, knowing the world is constantly looking to innovate, modernise and revolutionise. Five to 10 years ago, businesses could get away with being a bit behind the times, but now things move so quickly we have no choice but to keep up.

There are also some tax advantages to be enjoyed in 2021 in light of COVID related support and rule changes, making it a good year for tax planning, while your business advisor or grants specialist can help you put your best foot forward when it comes to the raft of financial assistance for new business ventures.

So if you’re ready to make the leap in 2021, here are my top tips to help you on your way.

Follow the process
Whether it’s doing a SWOT analysis, drawing up a business plan or developing your growth strategy, if you follow the process, you’ll feel empowered by the process. You’ll have the confidence to back yourself. You just have to start.

Goals and checklists
Say one of your goals is to turn over $100,000 in your first three months, you’ll need to develop a checklist of tasks that will take you closer to that goal. These are the things you work on until the boxes have been ticked. It could be finding premises, developing a sales strategy, recruiting a bookkeeper, sourcing a supplier. Once you’ve actioned an item, add a new one in line with your goals.

Get to know your numbers
As a fledging new business, you’ll probably find that your forecasting and budgeting are largely aspirational, at least until your second year of business, when you can look back and see what actually happened during those first 12 months.

A rolling budget or rolling forecast can be updated as new financial information presents itself, allowing you to set expectations up or down as needed. Also crunch the numbers regularly in terms of working capital. What’s the worst-case scenario? Ditto your funding, whether it’s from the bank, your own cash reserves or a funding partner.

Find a sounding board
Whether you think of them as your sounding board, consultant, mentor or cheerleader, a business advisor can help keep you accountable. Making time for regular reviews – at least quarterly – is important, allowing you to reflect on what went right and what went wrong, and ensuring you have a rolling plan of tasks to work on.
 
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