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Starting Your Business

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How To Set Up A New Company & Shelf Company Services In Australia

You have a great new idea for a business.  Nurture the passion and enthusiasm as it will be a long ride!  We have provided the list below to help you get started, but remember that perseverance and hard work will make your business a success.

We like to use the framework provided by Verne Harnish who wrote “The Rockefeller Habits”  (see more on Verne here http://gazelles.com/ ) to frame our approach to startups, namely:
  • People
  • Strategy
  • Execution
  • Cash
We have listed books that can help with each of these issues in our online bookstore at amazon.

People

image-people-01 Who do you need to run the business, what are you personally good at, what do you need advisers or coaches to help with.  A key choice is to choose a lawyer and accountant you can trust to help you with the right legal structures and reporting for your business.
You need to look at all the key roles that a large business would have (see below), and then decide who on your team will do those activities.  If you are a team of one – then its you!
Key roles in a large organisation would be:
  • Sales & Marketing
  • Operations – delivery, manufacture
  • Finance – bookkeeping/reporting
  • People-Hiring/teaching/firing
  • Technology
See if you can put a name against each function.  You can also get more help on the “People” question at Gazelles, Inc http://gazelles.com/ or read Verne’s book “Mastering the Rockerfeller Habits”

Strategy

image-strategyPeople often confuse the Business Plan (the “how”) with the Strategy (the “why”).  The strategy is broader; why have you started this business? what are the objectives that make it successful for you?  what would good and bad performance look like?  how will you measure that?  who is competing with you? what approaches will you use that will give you an edge compared to competitors?
We would recommend the tools by Kaihan Krippendorff  “Outthink the Competition” www.out-thinker.com to assist working out your strategy, and a very useful template for structuring your thoughts on your business is “Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers” by Alexander Osterwalder.
You can also see other books we have found useful here

Execution

You need to have a plan for your business.  At a simple level it is:

image-execution

  • The Offer – Value proposition – what are you offering to potential customers
  • Customers – What sorts of customers are you offering this Offer to?  Will you be dealing with particular demographics or personas, or to people in specific locations, or through a shop or online?
  • Resources – what people, materials, activities and partnerships do you need to make the offer
  • Financials – what are the likely expenses and incomes from the offer and resources – who do you make money.
To assist with a detailed review of the overall business model – have a look at www.businessmodelgeneration.com  (or the book  “Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers” by Alexander Osterwalder) which provides tools to help work through the plan.  You can also review the one page plan provided by Gazelles at www.gazelles.com

Cash

image-cashThis is the key for any business.  How will you charge for your offering, how will you collect the money, how long will it be between providing the offer and getting the money, how will you pay for staff, resources and premises while you are waiting for the money, and what initial money do you need to set the business up.   Depending on your answers to these questions you may need:

 

  • Bank accounts
  • Credit card acceptance facilities
  • Overdrafts or business loans
  • Bank guarantees (for premises leases)
  • Raising money from family/friends or angel investors

The best all around guide to making money from a business, with simple explanations of cash and how to make a profit, is the book Simple Numbers, Straight Talk, Big Profits!: 4 Keys to Unlock Your Business Potential By Greg Crabtree   Pretty much like the title says!

We have collated some good resources here, but find a good accountant as this is key to your business success.