- Know your basic targets- your Break-even point (BEP) is the absolute first target.Most businesses I have worked with, have this made up number based on what they ‘think’ it is rather than what it actually is. This will scare most of you as most think it is much less than what it truly is, but without this as a minimum target, you will actually lose more money as you do not have the basic turn over target.
- Know what you are getting into- Even better don’t make the jump from employment to your own business until you have the right plan (not one from your accountant- watch Shark Tank for ridiculous valuations provided by accountants), a solid business not a ‘pipe dream’, and some skills behind you in running a business, just because you like cooking and enjoy doesn’t mean you can run a successful restaurant.
- Be prepared to work for your business first- if this journey is new for you, do not think anything will come easy. I have very close friends of mine that went to school with 2 guys that started their business with $20k, created a monster of a marketing campaign around the product and turned it into $60 million in 3 years… incredible, right? Yes, it’s possible but may not be probable. These stories are amazing for the dreamer and the “entrepreneur” but it’s the one in a million. The fact is that 96% of business fail within the decade. So before we all get carried away with projections, let’s just sign up our first customer and create detailed plans around the future of the business.
- As you expand, think and then think again– recruitment, SOP’s, sales processes are fundamental for your growth. Without clear documentation and or coaching your business will not grow, in fact, without clear strategies around your sales and recruitment your businesses inefficiency could cost more than money.
Whilst this all seems dark and gloomy with 2.8 million businesses in Australia and less than a few percent getting to the 2 million dollar mark and the large majority failing before they turn 3, sometimes, to stop and think before running into battle may be the best option for you and your family.
Author: Julian Van der Waal