Is Now The Right Time To Start A Business?
“In my conversations over the last few weeks, several people have told me that they were part-way through developing a new business concept (or literally about the launch a new business) when the COVID 19 pandemic was declared.
The questions they are asking me include “should I wait?” and “is now really the right time?”.
Many feel at a loss, not knowing if they should grieve the exciting time they were expecting to have working on a new business; or if they should just do it anyway.
To be completely honest, starting a business is much like starting a relationship – the right time is when it feels right, and when you are so passionate about it that you just can’t wait. Naturally there are feasibility considerations, and other market considerations that you need to take into consideration, and I am assuming that if you have reached the point where ‘it feels right’ for you then you have covered these off in your planning.
So, if you are ready to launch, should you do it, or should you wait until this unusual situation passes?
My view is that there are no guarantees in business (or in life), and there is no certainty surrounding the timing of the COVID 19 restrictions, so if you decide to wait, who knows how long you will be waiting.
If, on the other hand, you decide to launch, then your new venture will be established and progressing by the time we come out of this unusual situation, and you will be set and ready to handle the momentum as it builds.
Whether you decide to start or delay, now is the time to review your business plan. To help, I have put together a list of the 5 critical steps you need to take before you launch your business. These are drawn from my experience as a lawyer, business owner and entrepreneur.
1. Get the right Business Structure. Many people assume that a sole trader is the best business structure when you are starting something new. While there are certainly benefits to a sole trader, it is not for everyone. Be sure to explore your options thoroughly before you start, because a company structure might serve your needs better and having this structure at the start saves a time and money down the track.
2. Check your Website Compliance. Do you have your privacy policy and website terms and conditions published on your website? Have they been tailored to your business so that they do what you need them to do? Many people over look website compliance, but it is important and can protect you from issues later on.
3. Set up your Business Agreements. Whether your business is online, a product or a service business, be sure that your business agreement/business terms/distribution agreement/etc. are set up and properly tailored to reflect your business and its needs. Are your terms and conditions compliant with Australian Consumer Law?
4. Review and identify your Internal Systems and Processes. How do you process inquiries? How do you manage incoming orders/requests? What is your booking/ordering system, and are these streamlined and linked to your website? (efficiency is critical if you want to grow your businesses). Is your accounting software supported by your bookkeeper (if you don’t have a bookkeeper, then you should think about that now – the cost benefit of doing these things yourself can be counterproductive when you can outsource to an expert). How do you get paid? Be sure that your business agreement clearly sets out your payment policy and details – you need to be sure that your processes are compliant with Australia Consumer Law.
5. Prepare your Communication Strategy. If you don’t have one, get on to that now – and by now, I mean right now and before your launch. Without good communication and a considered strategy that will ensure your communication is clear and consistent, in my experience you are setting yourself up to fail. Your communication strategy should address who your ideal client is, how you are planning on reaching them, what your message is and how you plan on getting this across. Your communication strategy will incorporate your website script, your social media/digital communication, and your face-to-face messaging.
There is a lot more detail that I could go into, such as whether you need to trade mark your name or logo, dealing with employees (if and when you have them), how to resolve disputes, and what to do if your clients don’t pay. If you reach the point where you would like to explore these in more detail, feel free to get in touch.
Good luck! And happy planning!”
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Our resource Building Your Small Business | The Beginners Handbook might also be helpful.