Think big and long term for success
So you want to be your own boss? Here are some things you ought to know.
Think long-term and think big. I meet people who put unnecessary limits on the success of their business. A common example is wanting to stay under $60,000 in turnover to avoid filing GST returns. If you aim low, you'll hit low.
Remember business is an opportunity to fulfil big aspirations. Start off thinking about what you want things to be like in 10 years.
If you have some concern about risk and want to distribute funds to your spouse who works in your business, a company might be a better option than a sole trader. If you're not sure about which one to choose, seek some advice from a professional.
Invest in a plan. Plans help to fine-tune and extract your thinking into a document you can then continue to refine. Financial plans are best prepared with a conservative view on income and slight overspends on expenses.
Have you figured out how you will fund this business and are there any financial gaps? Does your product or service have a market and will they pay the price you're seeking ? All these things should be in the plan you're putting together.
Stick to your price, focus on service. This one's important because price determines your income. But constantly discounting your services to get work in the door can be a race to the bottom, so don't get caught in that trap.
I find people who don't value their price properly become obsessed with their running costs to the point where they slowly restrict their business from being able to operate.
Invest in technology. Technology will save you time and money, especially in the administration of your business. Look at workflow and timesheet software, financial software and even methods to collect payments on the spot which can even run from your smartphone.
If you need help all you need to do is ask your accountant.
Jeremy Tauri is an associate at Plus Chartered Accountants.