Talking Cents

Are you ready for a small business?

Of all the aspects that require investigation and research before even thinking about starting a small business there is one that most people overlook. Actually, I don’t think they just overlook it, they make a very broad and dangerous assumption that this key element of the business is going to promote a long term successful small business. So, what’s that mystery key aspect I hear you ask? You, yes that’s right, the person staring at you in the mirror is the biggest determining factor in your businesses success. So, in order to conduct a little self-analysis, here are just a few key criteria that we know play a major role in business success stories we have seen over the years.

1. Do you have the passion and drive to not just set up a business, but to keep driving it for 5, 10 or even 20 years? Most small businesses are not overnight successes and require a long term investment.

2. What’s your grasp of basic business bookkeeping? You don’t have to do it all yourself, but you do need to understand the numbers and how they come about, before you can make any meaningful decisions for the future.

3. How’s your health? Running a full-time small business can require extremely long hours at the coal face and this can take a toll on your personal health. Make sure you have the self-discipline to keep up a healthy diet and take regular breaks for exercise. Thankfully the media is also now bringing about greater awareness of mental health. Be really honest with yourself here, if you think the business will put your mental health under too much strain, then don’t risk it, it’s that simple.

4. Are your family on your side? Working late nights/early mornings can take its toll. As can the strain on family finances. A supportive wife/husband is so important. Be very clear about what is going to be involved with your partner from the outset to avoid arguments and confusion in the future.

5. Do you have a strong support network? You need friends who know you well and can hold you to account in an honest, but not hostile, manner. If you don’t, big egos can often cloud your judgement. This is separate to your business network of advisors such as mentors, solicitors and accountants, which are also vital to your success.

This is just a sample of the self-reflection required before you start looking at running your own small business. We’re all unique and bring different skill sets to the world, just because you love entertaining at home does not therefore mean you are equipped to run a full blown restaurant. So in conjunction with your business plan, set aside resources to also prepare a life plan or personal plan so you can run the business and not have the business run your life.

For more information on small business establishments don’t hesitate to contact us at mas accountants, the original accountants for small business, based in Sydney and Melbourne.