Starting a small business may sound like a great idea. If you look at mortgage brokers sydney, you may think starting a business is easier said than done. Working your own hours, being your own boss, doing what you think is important and profitable, and ultimately having a larger profit margin than working for someone else. Yet, establishing a business takes a lot of work and planning to make it successful. I have started to think about ways to simplify the process for those considering starting a new business and there are three things that stand out when it comes to setting up a successful small business.
- Identifying Your Market – One of the first steps that a small business owner must establish is the market for their product or service. Who will be the customers? Why will they want what you have to offer? How many people will want it? Answering these questions is important because it will establish your focus. If you don’t have an idea of who and how many people you are trying to reach, you will have difficulties being successful.
- Providing a Quality Product/Service at a competitive rate – The next step is establishing a small business is fine-tuning your product or service and making sure it is accurately priced. The last thing that you want is to put all of your time and effort into something that is either over-priced or under-priced. An over-priced product/service will decrease the demand and profitability. While an under-priced item may increase the interest and demand, it will hinder your ability to make a profit. Furthermore, it will be even more difficult to increase the price later without losing a large portion of your customers. If you need a great example, just look at netflix. They recently changed their pricing structure and lose somewhere around a million customers. I was one of them. While you don’t have to write it in stone at the beginning, taking the time to establish a competitive price and the details of your product and/or service at the beginning will help you go a long way.
- Keeping Track of Finances – One of the last things you want to do is to fail to keep accurate financial records. While you can use my business spreadsheet to help keep track of your expenses, you ultimately will want to set up a bank account for your business. Having small business merchant accounts is a good practice because it keeps your personal and business money separate. This will make it easier when you go to do your taxes, as there are things such as self-employment tax and estimated taxes.
While this list is not intended to be comprehensive, it will allow for someone who is brainstorming to get a better idea of what is expected to make a successful business.