Many business owners map out some form of business plan at the outset, with goals that are based on guestimates. While start-ups don’t have a track record to rely on, a little research can go a long way in setting realistic objectives that can be tested to provide you with some actual data.
Using this information you can then set realistic and achievable goals that you can measure and feel the satisfaction from having accomplished.
Start-up businesses are cash hungry, but not so quick to provide a return. If you’ve heard success stories and think you’ve got an idea that could turn you into an overnight millionaire, think again.
The reality still is that most businesses fail in their first few years and the successful ones, still require a lot of start-up capital and hard work to turn into a success.
As per point six above, set yourself realistic goals you can achieve and you’re more likely to be a success and feel like one in the process, rather than be disheartened by not meeting unrealistic expectations.
As the business owner, your staff look to your example and follow your lead. What does the way you conduct yourself say to your team? Actions speak a thousand words, so you need to communicate and display the type of qualities you expect from your team.
You also need to give them adequate information to help steer them in the right direction and empower them to contribute to helping the business achieve its objectives.
This information includes the purpose of the business, the goals you have set, how you’re going about achieving them, what you expect their specific contribution to be on that journey and how you’re going to measure your progress.
Business owners should always have an eye on the value they want to build in their business, with a view to one day achieving that return on their investment when they exit.
In order to do this, you need to have an exit or succession plan, a timeframe you want to achieve that in and a dollar figure you expect to obtain when you exit.
Working back from that figure you should have a strategy to build the business value over the life of your ownership.
Again, many business owners can have unrealistic expectations regarding their sale price and what someone else is willing to actually pay, so seeking some independent advice about this can help set an achievable target.
Initially you’ll be covering a lot of bases during start-up. However, if after some time you’re still trying to do it all yourself or, worse, have to do it because there’s no one else that can take the reins for a while, then you’ve got another job instead of a business.
Many business owners get caught up trying to do it all because they think they know it all and can do it best. In reality, no one person is great at everything and spreading yourself too thin means you risk losing it all when you burn out.
Your start-up plan should include a growth and resource strategy that allows you to bring skilled people on board at the right time to meet the business’s needs.
If you can match this against your own skill set and interests in the areas of the business you actually enjoy being hands-on with, then even better.
Marc Peskett is a partner of MPR Group, a Melbourne based firm that provides business advisory and finance lending services, as well as tax, outsourced accounting and grants support to fast growing small to medium enterprises.
MPR Group are holding Business by Design workshops to assist business owners develop the focus they need to have the business they want. For more information click here.
You can follow Marc on Twitter @mpeskett
