I’ve run my own small business for 10+ years now. I know that starting a small business is both exciting and challenging. If you’ve ever thought about starting a small business, now is as good a time as ever to do it. However, going into business for yourself is not without its challenges.
In fact, according to the Australian Bureau of Statistics, nearly 60% of small businesses fail within the first three years. That’s scary. However, with the right approach and careful planning, you can significantly improve your chances of success.
Read on as I discuss my 6 key tips to help you run your own small business.
1) Market research is key – who are you selling to?
Market research is really a ‘business 101’ thing. You need to understand who will buy your product or service BEFORE starting a business. This means you need to research your target audience, competitors, and industry trends. This information will help you identify opportunities and gaps in the market.
For me, I specialise in Search Engine Optimisation (SEO) and website design. My ideal target market is other small business owners who run local businesses, ideally in Sydney, as this is where I’m located.
More specifically, I like to work with health practitioners, chiropractors, physiotherapists, and other clinic owners. I offer SEO for chiropractors, website design for physiotherapists, and more. My 5-page website design service is perfectly suited to these types of business owners. These types of businesses have become my ideal target market.
One of my clients is EnVogue (a boutique medical aesthetic company) based in Sydney. They use the business-to-busijess model and sell to dermatologists, plastic surgeons, cosmetic clinics and some exclusive medi-spa’s. This is their ideal target market, and all their marketing efforts go into appealing to these type of customers.
Here are some pointers to help you identify your target audience
- Who are they?
- What are their needs and preferences?
- Who are your competitors? What are they doing well? Where are they lacking?
2) Create a solid business plan
A well-thought-out business plan serves as a roadmap for your business. It should outline your business goals, strategies, and financial projections.
I first learned about the importance of a business plan while studying my Diploma of Marketing at TAFE. Even though I have a degree, I personally gained more value and practical knowledge from the TAFE course compared to the degree.
So, I learned that putting together a business plan and going through the process of thinking through all the detail is an important step towards ensuring the success of your small business.
Here are some pointers on what to include in your business plan:
- Executive summary. This is a brief overview of your business.
- Business description. A detailed information about what you do.
- Market analysis. Touching on tip 1, and insights from your market research.
- Organisation and management. Your business structure.
- Products or services. What you’re offering.
- Marketing and sales. How you plan to attract and retain customers.
- Financial projections. Revenue, expenses, and profit forecasts.
3) Meet your tax obligations
Meeting your tax obligations is essential for the success and legitimacy of your small business. If you mess around with your tax, you’ll only end up having to still pay it, and possibly pay fines and interest on late payments.
Paying corporate tax and your fair share of personal income tax is inevitable. Don’t burry your head in the sand. Include tax considerations in your business planning from day 1.
Here are some points to consider.
What are your tax requirements?
Different businesses have different tax obligations depending on their structure, size, and industry. What applies to your business?
- ABN. Ensure you have an Australian Business Number (ABN).
- GST. Register for Goods and Services Tax (GST) if your turnover is $75,000 or more.
- PAYG withholding. If you have employees, you need to withhold tax from their wages.
Lodgements – do these on time
Ensure you lodge your tax returns and other required documents on time to avoid penalties.
- Business Activity Statements (BAS). Lodge your BAS monthly, quarterly, or annually, depending on your reporting cycle.
- Income tax return. Lodge your annual income tax return with the Australian Taxation Office (ATO).
It pays to hire a competent and professional accountant and/or bookkeeper to help you stay on top of your tax obligations.
4) Build a strong online presence
If you know who your target market is, you’ll now need to know how to market to them. Online marketing is essential in today’s internet age. Most customers use Google to find a service or product. They also use the internet to check out customer reviews and see what others are saying about you.
A professional website and active social media profiles can help you reach a larger audience, while adding credibility and trust to your business. Here are some important online items to check off:
- Small business website. Ensure it’s user-friendly and mobile-responsive. Have a great looking Home page, engaging About page, a unique page for each of your products or services, and a simple Contact page.
- Social media. Engage with your audience on platforms like Facebook, Instagram, and LinkedIn.
- SEO. Optimise your website for search engines to attract organic traffic.
- Content marketing. Create valuable content to attract and retain customers.
5) Focus on providing excellent customer service
Excellent customer service can set you apart from your competitors and build customer loyalty. Happy customers are more likely to leave reviews online. You want to create raving fans who love your service. And better still – who love the results you deliver. Here are some pointers on customer service:
- Listen to your customers. Take their feedback seriously and make improvements.
- Be responsive. Quickly address any issues or concerns.
- Personalise your service. Make your customers feel valued and appreciated.
6) Beware the burnout – and take time off
Running a small business can become an all consuming task. It can be incredibly demanding, especially during the initial phase. Going to hard for too long can lead to burnout if you’re not careful. It’s essential to take care of yourself to maintain the energy and motivation needed for long-term success.
For me, I used to work 6-days per week. That was fine when business was just getting off the ground. Now, however, I limit my time in the office to 3 days per week, with one day from home per week. I taught myself systematisation. The time I take away from the business helps me stay focused while I’m working in the business.
- Get enough exercise. For me, I exercise daily. Whether that is going for a lunchtime walk, a gym weight session, or a mobility and stretch session.
- Fuel in equals energy out, so eating a balanced diet, and getting enough sleep.
- Establish clear boundaries between work and personal life, such as set work hours and schedules for personal time.
- Delegate tasks to employees or outsource, trust your team, and use technology to automate routine tasks.
- Seek support from others, such as networking, mentorship, or professional help.
Key points
Starting a small business can be both exciting and challenging, with nearly 60% of small businesses failing within the first three years. However, with the right approach and careful planning, you can significantly improve your chances of success.
Think about who you are selling to, how to market to them, how to structure your business, pay your taxes, and take time out when needed.
Author: Marshall Thurlow is the Director and Founder of Orion Marketing Pty Ltd. He is a digital marketer with expertise in SEO, website design, content marketing and project management. With over 15 years of experience spanning government, not-for-profit and the private sector, he is well equipped to lead teams to success.