Leap of faith

It was interesting to hear KPMG in Sydney talk about the Australians fear of failure and, as a consequence the country has less entrepreneurs than other countries.

The stats however don't support this belief, each of the following countries data suggests a similar number when you equate to population.

USA - population of 331m (2020) and 30m registered SME businesses UK - population of 68m (2020) and 5.9m registered SME businesses Australia - population of 25m (2020) and 2.1m registered SME businesses

We have all seen the effect of Globalisation and the likelihood that this will continue, however, we also see the importance of small businesses who stimulate local trade, local employment and ultimately create wealth for the local population. As with wealth distribution, which follows a similar pareto, almost 97% of businesses in any economy by volume are SME in nature.

So how do entrepreneurs make a success of their dream, what makes them different and want to go it alone, and what opportunities are there for those who do make a go of it.

In a series of blogs, I first want to address what steps an entrepreneur should take or consider before taking the leap and, for those who want to take the leap but are maybe unsure on what first steps should be taken.

To become an entrepreneur, you must first cross the divide, the want to into the can do. When you identify and start a business venture you also take on most of the financial risk and reward. Becoming a successful entrepreneur takes a realistic, hardworking person who cares about the details of a business.

Becoming a successful entrepreneur means you need to design a product or business plan, implement the design or plan, own the business that sells your product or services, care for it and nurture it, and then watch it grow.

Entrepreneurship all starts with an idea that should then develop into a business plan, which includes details and descriptions as well as product and service evaluations. This plan will help you find investors who will give you funds so that you can start your business. After your business has opened, you need to market it and network yourself so that you gain access to other successful entrepreneurs who can help you grow your business.

So here are a few steps to help you on the way.

1. Brainstorm an Idea
The idea is the basis of your business. It gets you to entrepreneurship status. Realistically, an idea isn’t everything for your company. You simply have to do something that no one else does or do what others do but only better.

For your idea, study the market and find a niche in the market that is underrepresented. Explore your interests and hobbies for ideas because these are things you know a lot about and are passionate about. The most important thing to remember about your idea is that you need to make sure it is realistic and there is a market for it. Most businesses start out with an interesting idea that meets the needs of consumers around their area.

When looking into Starting a business

(1) You can do what you know and you are good at because you have done it before

(2) You can do what others do and expand upon it to create a better experience in that type of market

    (3) You can fix a consumer problem by filling a gap in the market.

2. Write a Business Plan

Writing a business plan is your chance to practically lay out exactly what your want your business to look like on paper. Your business plan should have a product or service description that lays out your materials and what the product will look like and do. This section gives you a chance to develop your product and present it in an eye-catching manner.

Next, you should include all of your market research and analysis, which explains who your target market is, what they shop for, and where they can be found. Also, include a detailed breakdown of your competition that explains how you will do better than them.

Then include a marketing and sales section that explains what your marketing strategies will be, how you will implement them, where and when you will sell, and what your estimated sales forecast is for at least the first quarter.

If you are considering manufacturing, you will need a section that has a detailed explanation of how you want to build your product and what types of materials you want to use.

The final section will be finance, which tells investors how much you need to start your business and what you expect your profit to be. Having a tangible business plan helps you market your idea more effectively to investors, and it allows you to work through your idea to gain a clear perspective of what you want your business to become.


3. Find Investors or a way to Finance

Find people interested in your industry, and pitch the idea to them by explaining your business plan and estimated gross profit. When looking for investors, you should keep in mind that they will be a partner with you in your business. Therefore, you will have to sustain a respectable, amicable relationship with the investor.

As you are searching, think about whether you want an investor who will be heavily involved or one who will just invest money and attend board meetings. Look into investors who are in your industry or who are based in the community.

Research the investors and the types of companies they have invested in before. If you would prefer to have no investors, look into other types of Financing such as Banks or small business loans.


4. Market and Sell

Don’t try to go big too soon. Start off small and make it work efficiently. Build a name for yourself, and become a brand with a culture around it by connecting with the consumer.

Market Your Business Online by using lots of Social Media. Social Media is one of the easiest ways to promote yourself because you can reach a wide range of people very quickly.

Dont forget your consumers, use their feedback to give your business third party credibility. Recommendations and ratings have become a reliable tool for consumers to check out what you can expect from a business

5. Grow With Your Business

Once you have found your niche and begin to grow, you will have to start managing instead of being the main producer of the product or service.

Remove yourself from your business directly so that you can oversee the whole thing. After you have closely managed for some time, turn what you do for your business into a simplified process. By making it something that can be copied and redone efficiently in multiple locations, you create a self-sustaining business, which means you are free to venture into other lines of capital using funds from your business as an investment.

Once you have made your first profit, reinvest the money necessary to keep your business going until it becomes self-sufficient. By being determined and working hard, you can create anything. Just make sure what you create has value by researching your market and testing your product or service. By following these steps, anyone who works hard can become an entrepreneur

Finally

Most businesses that fail, fail in the first couple of years of trading. Generally, the main reasons for failure come from poor planning, lack of researching your market or, the service you provide is not up to scratch and people just don't value it. So make sure that you take the time to prepare well so that execution has the best chance of success. Of course, even if your first venture fails, true entrepreneurs will try, try and try again.

Rosia Bay