Mind your business

March 25, 2010, 2:04 pmwomenshealth

Got a stellar business idea? Follow WH’s cheat sheet for budding entrepreneurs

Life & Features
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Your bookshelf’s graced with Losing My Virginity and back issues of BRW. You’ve got a killer idea, and MYOB. What now? The four “Ps”, says Naomi Simson, founder of redballoondays.com and author of I Want What She’s Having: “Passion, purpose, the right people and persistence.” Here, Australia’s most successful businesswomen on what they wish they’d known when starting out…

FILL A HOLE


Talk to an accountant to find out if your business idea is feasible, says Suzi Dafnis, 41, general manager of Australian Businesswomen’s Network. And think, is there a market for your idea? “I knew Australians spent over $2 billion on gift cards per year,” says Simson, 43, whose company sells gift vouchers for experiences and turned over $20 million in 2007. “So I offered something innovative, something consumers hadn’t seen before.”

BE PATIENT


“You shouldn’t leave your job on a Friday and presume you’ll earn a living from Monday,” warns Carolyn Cresswell, 34, founder of Carman’s Fine Foods. Cresswell started with just $1000 – and her mueslis are now sold in 17 countries. “Get the business started while you’re still working, so it’s a viable entity by the time you work on it full-time,” she says. You’ll need about six months.

PLUG IT


According to Simson, you don’t need to spend money on advertising. “Do anything and everything for free, as long as it fits your brand,” she explains. “I walked down Pitt Street Mall in Sydney with red balloons attached to my suitcase.” Cresswell says PR is more cost-effective than paid ads. “If your story’s interesting, the press might write about it.” For free. If you do advertise, make sure it’s “direct response advertising”, urges Dafnis. “This might mean a free trial, discount or gift with purchase."

SLOG IT OUT


It may be five years before you make a profit, warns Cresswell. Dafnis agrees: “I went backwards about $40,000 in my first two years. Small business isn’t for everybody; you’ll need to work harder than ever before,” she adds. You might have to perform new roles: the mail person, the receptionist, the IT guy.

GET A MENTOR


Swedish-born Kristina Karlsson, 34, founded stationery brand kikki.K when her English was so poor she thought “invoice” had to do with talking. And she knew nothing about business. “Networking and having mentors helped me bridge the skills gap,” says Karlsson.

“I also read as much as I could, did training courses and sought out inspiring speakers; one of my favourite books is John McGrath’s You, Inc..” Dafnis regrets not having a mentor when she started. “Find someone you admire, who’s been there before, whose brain you can tap into, and buy them a coffee,” she says. Check out hermentor.com.au.

On your marks


How to get started

Step 1 Register your business name with ASIC (Australian Securities and Investments Commission). See if your name is unique at search.asic.gov.au.

Step 2 Get an ABN (Australian Business Number): this will be used in dealings with other businesses and with government. Go

to abr.gov.au for more.

Step 3 If you’re aiming for sales over $75,000, register for GST.

Step 4 If you’re registered for GST, you’ll need to lodge BAS (Business Activity Statements). These report your sales, purchases and wages for the period (usually quarterly) and determine whether you owe the government money, or vice-versa.

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6 Comments

  1. FamilyDeals.com.au11:30am Thursday 01st April 2010 ESTReport Abuse

    That's really good advice. Thank you

    Reply
  2. Janine11:00am Thursday 01st April 2010 ESTReport Abuse

    I have had my own business for nearly 20 years they are really great tips. Two more things -your business works best if it is something that you are passionate about and have an insight into the needs in that market. Finally take care of your health, work hard but don;t overwork.Keep balanced . Stay Happy.

    Reply
  3. Sir Loin the Stake10:56am Thursday 01st April 2010 ESTReport Abuse

    Great article with loads of ideas coming forth. Thanks!

    Reply
  4. ji p10:26am Thursday 01st April 2010 ESTReport Abuse

    Thanks for this great article. I've been thinking of owning my own small business in the future

    Reply
  5. Ash10:06am Thursday 01st April 2010 ESTReport Abuse

    Fantastic article! :-)

    Reply
  6. Aya7708:20am Thursday 01st April 2010 ESTReport Abuse

    Great advise, im going to try all of it. Thanks WH.

    Reply

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