Starting a new business or embarking on a new business venture can be terrifying and exciting at the same time. As the owner, you are solely responsible for the way your business functions and if it succeeds or fails. The best way to succeed as a business owner is to understand the basics of starting and running a business before you actually begin. Here’s a little help to set you off in the right direction.
As a small business owner, your ultimate goal is to maximise your profit. To do this, there are six activities that you can undertake:
As a business owner, you are expected to be a jack-of-all-trades and perform the above tasks. Some key business skills you should consider acquiring are:
If you don’t possess all these skills, you can always hire people who possess these skills, hire business advisors, or learn the skills you lack.
Without customers, you don’t have a business. The customer is the focus of every business, and it is important to be able to identify your customer before you set up a business. Knowing more about your customer will increase the chances of your business succeeding.
Every market is made up of two groups – sellers (supply) and buyers (demand). Is there a demand for what you want to provide? According to the principle of supply and demand, prices usually fall when supply is greater than demand, and prices are more likely to rise when the demand is greater than the supply. By understanding the nature of supply and demand in your market, you can plan, price, and make bigger profits.
Every business tries to outdo its competitors to gain a competitive edge and survive. Understand your competitors’ pros and cons. Then exploit their weaknesses by giving your customers products and services that are better, of higher quality, more friendly, and provide greater value and satisfaction.
There are four common business structures in Australia:
Each of these business structures has its own unique traits, and will affect your tax, asset protection, and costs. You can change your business structure as and when your business grows. Talk to a legal adviser If you are unsure about the best structure for your business.
Starting a business is one thing, but ensuring its longevity is an entirely different matter. To ensure that your business is a success, ensure that your customers’ needs are your priority at all times. Keep in touch with clients and give them offerings that are simply hard to resist.
Small Business BC. 2021. Understanding the Basics of Business. [ONLINE] Available at: https://smallbusinessbc.ca/article/understanding-basics-business/. [Accessed 18 January 2021].
Smallstarter. 2021. Business 101: Five Important Concepts Every Entrepreneur Must Understand to Succeed in Business. [ONLINE] Available at: https://www.smallstarter.com/know-the-basics/business-101-5-important-concepts-every-entrepreneur-must-understand/. [Accessed 18 January 2021].
FreshBooks. 2021. What are Operating Activities in a Business. [ONLINE] Available at: https://www.freshbooks.com/hub/accounting/operating-activities. [Accessed 18 January 2021].
Australian Taxation Office. 2021. Choosing Your Business Structure. [ONLINE] Available at: https://www.ato.gov.au/Business/Starting-your-own-business/Before-you-get-started/Choosing-your-business-structure/. [Accessed 18 January 2021].