Building Your Small Business | The Beginners Handbook
So, you’ve decided that it is time to start that business you’ve been thinking about?
Congratulations! This may be one of the best things you ever do—if you do it properly.
The decision to start my business changed my life. More than a year later, I can’t imagine life any other way and I’m so glad I made the decision to back myself and take a leap of faith (boots and all).
Being a business lawyer, I’m also privileged to chat with new business owners every week—and I often can’t hide how excited I am for every new business owner I work with.
When you are new to business, it can be overwhelming. There is so much information out there and it seems like there are so many hoops to jump through, especially at a time when you just want to get out there and do the work you love. We don’t know what we don’t know, and it can be really tricky trying to navigate through these early stages.
Enter me, someone, who is there to help cut through the overwhelm and support you to set the foundations for success in your business.
Here are my top five things to consider and act on when you start in business.
1. A business structure that fits.
Just like those Louboutin’s must fit your foot or you risk falling flat on your face, your business structure must fit your needs.
It can seem all too tempting to grab whatever business structure seems okay (cheapest registration, easiest paperwork), but like the sale Louboutin’s that sit in the cupboard because they’re a size too small, the wrong structure set up can leave you with regrets down the track.
This year many businesses found themselves exposed when we were met with the tough times of COVID, left out of much-needed stimulus packages because the business structure they were operating under was not the most suitable (or appropriate) for the business. It’s never too late to change, but getting the structure right from the start can save a lot of pain! (There are no blister pads for business, and we all know those things don’t work well on our feet, anyway—prevention is better than cure!)
Take some time to really consider your options on business structures—you won’t regret it.
2. Business Terms & Conditions—because you’re worth it!
You know that friend in school who just took everything from you but left you high and dry whenever you needed anything in return. Remember how you kept this friend because they were popular, and you thought you needed them? Remember how liberating it was to break free of them and to realise that you are worth so much more?! I want you to remember that you are always worth so much more—don’t ever let another person determine your worth.
When starting a business, we can often neglect to set our terms and conditions, because we’re just so damn grateful to have a client or because we think they are the cool kid that will lead you to other customers. But when we don’t set the expectations, we let someone else determine our worth, and this can be dangerous. It’s high school all over again!
Whether it’s Service Agreements, Terms of Trade, or Terms & Conditions, you are worth proper ‘Business Legals’ (as I call them) that are drafted professionally, tailored to your individual business, and compliant with the Australian Consumer Law—because only then can you be sure that your business is protected. (And if you’ve followed me for long, you’ll also know that I think a legally protected business is damn sexy!)
3. Website Ts & Cs—putting your best foot forward.
Let’s face it, these days, a website can be where people really feel like they see you for the first time. In the absence of many face-to-face gatherings, more people are online and they’re looking at your website. Make sure your Louboutin stays on your foot (no Cinderella moments here) by having a clear set of ‘rules’ that govern how users are permitted to use your website. Your Website Ts & Cs are designed to clearly outline the expectations of visitors to and users of your website, and importantly, they set out what is prohibited.
They also place a disclaimer to limit your liability arising from the use of your website and the material on it, and they will protect your intellectual property.
Show the world that you are worth every penny by protecting yourself.
4. Build that team of advisers—with the right people by your side, you will soar!
Business Chicks says it all with their fundamental belief that ‘every woman is capable of achieving brilliant things—but you can’t do it alone’.
Since starting my own business, I completely get this. At the start, you can be led to think you have to do it all alone—don’t tell anyone your ideas, don’t ask for help and whatever you do, don’t show that under the surface is a mess of chaos! This way of operating is not only a lonely path, it’s limiting. Putting a team of advisers and supporters around you is one of the best things you can do for your sanity and for business growth.
And when you put that team of advisers, support network and amazing community around you, the best thing you can do is focus on diversity. We don’t know what we don’t know, and that’s okay. We are not supposed to know everything about everything, all of the time. That’s what your tribe is there for! When we surround ourself with people with the same skills and background as us, we can be led to an echo chamber that purely supports our way of thinking only. Sure, it can feel good to have all your thoughts reinforced, but it is the challenging views, the different advisory areas and the advice that helps us see our blind spots that really matters.
One of the best pieces of advice I have received in business is ‘Value Yourself’. Really value yourself. When you do this the right clients will come. And it’s true for advisers too. Value yourself enough to ask for help, to ask for differing opinions and different areas of expertise. The common thread is valuing you—your advisers may come with different viewpoints, but they are anchored by the high value and care they have for you.
To help you find the advisers you need, work out your strengths and identify your weaknesses (we all have them!). Once you have done this, outsource, outsource and outsource some more. Whether you need support from a virtual assistant, a business coach, a PR whiz or a detailed, visionary accountant, outsource it. When you do this you will find that you have organically and holistically surrounded yourself with the right team of advisers. This is the key to your future growth.
Read about my top tips for how to outsource in your business in my blog ‘Outsource with Ease’ and all about ‘Small Business Consulting from A Lawyer’s Perspective.’
5. Look after yourself—because your Louboutin’s can’t walk themselves, they (and your business) need you!
At the end of the day, your business will be worth nothing if you fall in an exhausted heap. And I don’t know about you, but I also find it really challenging to walk in my Louboutin’s when I’m exhausted. It all just goes to waste… You’re worth more than that!
I know that part of the reason you started your own business—or you’re taking steps to start—is because you are amazing, passionate and you want to do things your way, on your terms. Yes, I see you.
Prioritising YOU has to be part of your business plan. What is important is for you to keep healthy (physically and mentally).
Self care is an investment in your business, it’s not a luxury nor is it indulgent or self absorbed. Go forward and take care of yourself—you really are worth it!
A great resource is ‘What’s holding back your business from hitting the next level?’
If you’ve already started your business, and need a little pep in your step again (now that you’re a few years in), take a look at these “spring-cleaning” checks that I like to do every year.
Getting paid in your small business
Getting paid in your service-based business can be easy with good systems and processes. It doesn’t need to be daunting or overwhelming either. With a little bit of proper planning, viola! – you're getting paid on time, every time.
Properly tailored Business Terms & Conditions
When prepared properly, these set out the vital details around what services you will be providing; and avoid any room for confusion or uncertainty.
Having good internal processes and systems setup
These are paramount in helping you deal with issuing your proposals/quotes, Business T’s and C’s, being able to diarise dates for invoicing - both coming and going, setting up automatic reminders for accounting software and last but not least closing work projects in the finalisation stage.
Strategies for dealing with client issues.
Thinking ahead and not leaving this to when complaints and issues arise will have you better prepared and less stressed about the situation.
Like listening to podcasts and want to learn more from Australian Business professionals, these are sure to help add some value to you and your business, ‘Australian Business Podcasts for Busy Small Business Owners.’
Professionalism in Business
Something for me that is always top of mind and something that has also evolved over time. I used to think how I dressed and who I built relationships with were key to professionalism but thankfully with time and experience this has changed. I now believe it’s embedded in actions and behaviors and being aware both in ourselves and of others where professionalism truly lies. I believe there are 5 key areas to professionalism:
Respect. Acknowledging you and your time or business are no more important than someone else’s is important to understand.
Emails. Being able to respond to someone in a timely fashion can be the difference between disrespecting someone or potentially converting to a lifelong client. For more information about email etiquette, take a look at this article ‘When Can I Send An Email or SMS?’
Voicemail. Similar to the point above, making sure you have an appropriate recorded voicemail message setup and an appropriate timeframe to get back to someone shows respect for that person.
Website. Making sure it reflects who we are in business and gives a good impression of what goods and services we offer.
Documents. Similar to the website, these need to be tailored to your business, require attention to detail and care when being put together.
To learn more about Professionalism you should take a look at ‘Professionalism in Business.’
Prevention is better than the cure
Neglecting the protection steps of our business is easy to do but it can come with devastating consequences. Legals that are tailored to you and your business can remove that stress and help put together a clear and confident voice to both your clients and service providers that you’re well protected. Business legals ARE sexy and being protected from litigation is even sexier.
To learn more about the process from one of my clients, take a look at ‘The Importance of Business Legals With Tracey Mylecharane.’
You may also be interested in my resource, “Website privacy laws that help your business in the long run.”
What about when failure happens?
We don’t talk enough about failure in business. In my opinion, it’s a topic that we should discuss and embrace; without failure, there is no learning, no growth, no upleveling.
But let’s take that one step farther. I believe we should stop asking “what can we learn from failure?” and start asking “how can we learn from failure?”.
Act now to protect Your business
The past few years have been tough on business owners and if anything, it has instilled in us that we need to prepare for the unexpected - but what can we do to protect our interests?
Business Structure. Seeking advice about what business structure is best suited to you and the needs of your business, its risk profile and your long-term goals is a smart move in this current climate.
Business Terms & Conditions. These should be drafted by a professional, catered to that specific business and in line with Australian Consumer Law. I can help you navigate the waters and put your mind at ease.
Credit Management Processes. All the necessary processes to help you verify a clients details and ensure a great business relationship going ahead.
Should I start a business now?
With Covid-19 and all the other doom and gloom going on in the world right now, many people are feeling an overwhelming sense of reluctance and trepidation about starting a business and that is understandable. However there is light at the end of the tunnel and as restrictions start to ease, if you do decide to take the plunge, these steps can help with launching your business.
Having the right business structure that suits your scale and type of company.
Making sure that your website is compliant with proper T’s and C’s and privacy policies.
Having business agreements and terms tailored to you, and are compliant with Australian Consumer Law.
Review your internal processes and make sure the systems you have in place are linked and supported by aspects like your website and the software you use.
Make sure you have a prepared and considered communication strategy.
Starting a business is much like starting a relationship – the right time is when it feels right. Read more about starting your business here.
For those already in business who are navigating this rocky and often unstable terrain and dealing with situations often outside our control, now is the time to focus on the things we can control and improve our position where we do have some influence.
With a fresh set of eyes to look at things objectively in your business and with the right advice you can make some informed decisions about how to structure your company within these challenging times. Now is the perfect time to work together and be proactive and address any concerns or uncertainty you have within your business.
How do I keep my team engaged while working remotely?
With all this sudden change in how we work over the past few years, one of the most notable elements of this has been the shift of business going from the traditional office environment to working remotely or from home. This can be a hard transition for employers as it means a change of dynamic and also adds new variables to account for, especially in how to keep our employees engaged. These next 5 tips can certainly go a long way in helping deal with this transition:
The home office. It’s about defining the space at home, helping employees to create a work space where possible, making sure they have all the relevant equipment, such as laptop stands, all with the aim of comfort and sustainability.
Productivity. Be clear on what is expected of your employees and adapt to this change of how they’re working and where they’re working.
Connection. Utilising tools like Zoom and Microsoft Teams will help create that necessary connection we need to feel a part of a team in these testing times. Whether it is business related or just for social contact, it is a vital tool in keeping our employees engaged.
Mental Health. New situations will always bring new challenges and one of the most important aspects of this is mental health. Making sure employees are offered enough support and time to deal with these changes and to help them navigate through their anxiety, stress and feelings of isolation is vital.
Conversation. Ask them how they’re doing and how you can assist them, make them aware that you do care and want to make sure that they’re supported.
If you would like to learn more about this ‘Remote Working - Keeping Employees Engaged’ is a great resource.
Changing The Way Women Work
Over the past almost two decades a lot has changed for women in what is deemed acceptable working conditions. In what used to be an all consuming, highly stress filled, ‘work is your life’ mentality, which left us with no time for having a social life, let alone being able to start a family, it is pleasing to see change is in the air. Women are more often rejecting these traditional working conditions and looking towards more flexibility which is really inspiring to see. On the matter of starting a family be sure to check out my guide to everything you need to know about getting the most out of your maternity leave.
Read more about my journey to better working conditions, less stress and a successful business in the articles ‘Changing The Way Women Work’ and ‘How I built a multi 6 figure business in 2 years.’
What do I do if my client’s expectations aren’t met?
When the unexpected happens and things do go wrong, making sure your business legals are set up properly can help deal with an unpleasant situation a lot easier. So what should I avoid when a relationship with a client goes sour?
Avoid making it about yourself. Listen to your clients concerns and try to resolve it.
It’s not about the money. This could leave your client feeling undervalued and dis-empowered.
Don’t be Aggressive. This could lead to escalating the situation and end any chance of a positive outcome.
Don’t ignore them. Acknowledging your client’s concern sooner rather than later can help with de-escalation and the potential for something small to become much larger.
Avoid ‘Lawyering Up’. Get advice from a lawyer if needed but always avoid where possible getting your lawyer to deal with the client directly as this can get lead to your client feeling attacked and the chance for a positive outcome souring.
When all is said and done, having the ability to say no to a potential client is what defines you, especially when your gut tells you that this customer may not be the right fit for you or your business. Having a client who we know we can’t add value to because they show they may not value either you or your time and are looking at negotiating down your fees is a client that is worth saying no to and avoiding potential problems down the track.
What if I have a falling out with my Business Partner?
When an internal dispute arises with you and your business partner, making sure you’ve had a carefully drafted partnership agreement prepared can save a lot of headaches.
Following these 5 tips can help get you through this unfortunate situation:
Talk to them. They’re human, misunderstandings happen and a calm conversation can do a lot to remedy the situation.
Take a look at your written partnership agreement. Be clear on what steps you need to take for compliance and consult a business lawyer if uncertain.
Follow the steps of the partnership agreement. Ensure you comply with the process and avoid litigation and if needed consult a business lawyer.
Involve your Accountant if it relates to finances. Just like a lawyer is the best person to assist with legal issues, your accountant is the one to consult when financials are involved.
If it can’t be resolved amicably. Involve your business lawyer for the best legal advice going forward.
How a business speaker can help stimulate your business
Sometimes in the wonderful world of small business, things can start feeling a bit stale and lack the energy of those early days when everything felt fresh and exciting and overcoming problems were taken head-on with relative ease. As time sets in you often notice the heaviness of day to day operations, of managing the team around you, the clients and the product and burn-out becomes a real problem.
Having that ability to stand back and put your hand up and ask for help by engaging a Business Speaker to come in and provide motivation (among other things), to you, your team and even your client base can save a lot of future headaches and offer the insight needed to take you to the next level.
In the article ‘Insight and Inspiration | How a business speaker can help stimulate your business’, I touch on more ways a business speaker can help your business thrive.
Sole Trader or Company? | What is the best business structure for me?
For a myriad of reasons; such as future growth and direction of your business, for asset protection and for tax reasons (although we leave this with the accountants!) - having the right business structure is crucial for the operation of your business.
When small business owners don’t have the right business structure in place it can cause problems, and it’s important to understand what can go wrong in practical terms.
Most commonly, the majority of small business owners use a sole trader or company structure. We delve into explaining these differences and what you need to think about when starting, including long term vision and risk profiling. Getting your business structure right is vital for the long-term, sustainable success of your business.
Growing a team
At some point, you’re likely to find yourself with more work than you can handle, or wanting to expand your services, so you might decide to outsource to a contractor or bring on a new employee.
Think about how you’ll grow an All-Star Team (a team of people with the right skills and an aligned vision) - a team that will help your business grow in the direction you envision.
If you don’t get it right, you can be setting your business up in a way that limits growth and opportunity, and you can be unnecessarily exposing your personal assets.
Always talk to your small business lawyer and your accountant when you are considering your options. And learn more about protecting your business in this article.
Building your e-commerce business
Selling an E-Commerce Business?
What should I do to help maximise my value and what are my legal requirements?
Of course, there is the matter of selling your business. This can often be overlooked, but it is just as important to get this right. You can read more about the important steps when selling your business in these blogs: Selling and E-Commerce Business? What should I do to maximise my value and what are my legal requirements? and 6 Legal Advice Tips You Need When Selling Your Business and Selling Up? Here’s The Legal Low Down.
E-Commerce Terms & Conditions
Owners of e-commerce businesses need to be clear on their obligations under the Australian Consumer Law (ACL). Issues such as customers returning items, and your obligations on issuing a refund, rely heavily on how your business legal documents have been created.
Keen to read about my tips on starting your small business from home? Take a read of my blog ‘Starting A Small Business? Set-Up For Success From Your Home Office’.