Starting up and managing your own small business in Australia
Business management encompasses the wide range of activities required to effectively run a business – which include business planning, sales and marketing, financial management, staff management and scheduling to name just a few.
Market research and thorough preparation are some of the foundations for success when you’re setting up a new business. This requires you to gather knowledge and gain an understanding of the wider business environment in which you will be competing. In particular understanding your target market – who are your customers and what are their changing needs? Carefully study your competition, recognise emerging trends and identify where there may be opportunity gaps present in the market that allow you to exploit a point of difference.
If you’re looking at entering small business for the first time, it’s important that you go in with your eyes open ….. There will be times of disappointment and frustration. And running your own business will require persistence and stamina on your part, if you are to succeed……. but the potential rewards can make it worthwhile.
How to develop your business plan
If you are looking to start up a small business, then you will need a business plan. A basic business plan includes –
- a marketing plan (describing the product, price, promotion, position) which helps identify how you will differentiate your business from your competition
- an operational plan, detailing the logistics of delivering your service or product and how the business will be structured functionally
- a staffing plan, that refers to the recruitment, training and reward of any proposed employees
- a financial plan that breaks down all of your labour, equipment, financing and materials costs, together with projections of likely revenue from sales
If you need to prepare a detailed business plan, perhaps to support a business loan application for example, then we have a great sample business plan template you might use or adapt. Click here Business Plan Free Template
Small business essentials – some early steps
One of the first things you will need to think about is selecting a business name
And you need to understand how to leverage your website as a marketing tool. So it is essential to possess some knowledge of what is SEO and to gain valuable SEO tips for small business if you want your website to rank highly in search engines and thereby generate leads, enquiries and sales..
Business Management Courses
For information on recognised providers of business management training courses, visit our page Business Management Courses Melbourne
New Business Pitfalls
Want to know the reasons why so many new small businesses fail, have a look at Common Business Pitfalls
Business Management Skills
Effective business management also requires you to ensure the development of sound processes, procedures and policies. Then there is the actual organising and scheduling of work – and if your business has staff working for you, then you must be able to delegate and motivate.
It is estimated that up to two out of every three new small businesses shut down within the first two years of their start-up. Why is this?
Often it is because the entrepreneur with a great idea who initially starts up the small business lacks the business management skills to efficiently run the business.
For example, the engineer or the computer technician or the builder or the electrician will typically possess strong technical skills themselves and a good work ethic. They possess the drive and initiative to set up their own small business
But the entrepreneur might not have developed the ability to effectively control the costs or manage the record-keeping required by the business. Or they may lack the sales and communication skills necessary to grow the business or they may not have the people management skills for motivating their staff.
Have a look at our page Small Business Tips
And, if you want some recruitment advice, look at Hiring Tips for Small Business
The NSW Government, Department of Small Business offer a useful resource site with some informative articles for the small business owner – in particular have a look at their article, Managing Your Business in an Economic Downturn
Government help for small business
A fantastic resource site that offers a gateway to other government sites is Business – it also refers you to information about government grants and funding for people who are looking at starting up a small business
If you want to speak with someone who can offer advice on assistance that might be available to you in business management, call the Small Business Support Line on phone 1800 77 7275
Visit our blog for advice on how to start your own small business and plenty of great tips on how to run your business more effectively … Small Business Australia
Develop your management skills
If you are looking for ideas, advice and tips to improve your management confidence and capabilities, then check out Management skills development