Start-ups

[K3]

I was just wondering if anyone else here, is starting up/ has recently started up a new business.

I thought it could be a good place to share thoughts, get advice, discuss what we can do to help each other be successful.

I would start a ramble but will wait and see if anyone else is interested first.

So feel free to introduce your business, or just idea, and we can get down to business.

 

[pahoffm]

Had a handful over the years, with varying degrees of success.

Like football, business needs to be well planned and requires a few defensive strategies.

1. Ensure the legalities and structure of the start-up are set up correctly. Don't go to any accountant, engage a good one.

2. Always have the assets of the business in your own private name, then lease them to the company.

3. Be very conscious of not overspending at start-up.

4. Be certain of early start-up income - the business income, and your own personal income.

5. Look closely at your terms of trade to ensure rebates and discounts don't eat up your profit.

I'll let someone else take it from here.

 

[Rosy]

Very interested to read any input. I occasionally think of having a home based business but haven't had a brainwave as to what kind of business so it will probably remain in the too hard basket.

 

[Disco08]

I've been in business for myself for 5 years. Planning and dedication are crucial, but it all counts for nothing and won't last long if you're not enjoying what you do.

 

[Nico]

Started my first business about 6 years ago, and about to launch another. Agree with Phantom's points, I'll add the following:

- Don't start a bricks and mortar business if it can be done online. If it can be done online, do it online.
- If it's going to be a B&M biz, find a location that will give you the best chance of success. Don't open around the corner because it's convenient to you if there's already a lot of competition. My partner and I relocated 300kms away to ensure we had the best chance of success.
- Always set up a business with the view of selling it down the track (even if you don't intend to sell).
- Systemize everything, so the business will eventually run without you.
- Don't put your house up as security for a business loan.
- Pay yourself only a small salary initially, and re-invest profits into the business and/or pay off debt, and into cash reserves. Cash reserves are very important, and the odds are you'll have to utilise them at some stage. We had several key staff set up the same business down the road from us a year ago, and took a lot of our customers with them. We spent a lot on recruitment and advertising to get back on track, which we are now. We would have been out of business without cash reserves. The moment you think everything is going swimmingly, and you're feeling pretty pleased with yourself, there will be an issue, believe me.
- Have a business partner who has skill sets greatly different to yours. Even if you are more than capable, having someone to run ideas past, give you support during tough times etc. is invaluable.
- Outsource everything you can. ie. website design/development, logos, book-keeping, research. Go to sites like elance.com, odesk.com It's a global marketplace now...utilise it. My book-keeper is in India and she does an amazing job for $5/hr. My logo was designed for $50 in Russia. If I need some research done, or an article written, I tender it out. Had a friend who had a very basic information website developed for him for $10,000. If he tendered the job on an outsourcing website, he would have had change from $500.

If I think of anything else, will jump back on.

 

[Streak]

I have never owned a business, but IMO as a consumer, you have to get your business on the net no matter what.

I am not overly computer technical and have been slow on the uptake with buying on the net, but I have become a convert over the last 12 months.

I do not buy anything these days, goods or services, without doing a quick net search first. Sometimes I can just go down the street and get it for the best price or close enough to it, sometimes not.

But in a nutshell the net has made me a very discerning shopper.

 

[Baloo]

- Outsource everything you can. ie. website design/development, logos, book-keeping, research. Go to sites like elance.com, odesk.com It's a global marketplace now...utilise it. My book-keeper is in India and she does an amazing job for $5/hr. My logo was designed for $50 in Russia. If I need some research done, or an article written, I tender it out. Had a friend who had a very basic information website developed for him for $10,000. If he tendered the job on an outsourcing website, he would have had change from $500.

Yep, you can get a lot of what you need cheaper by using elance.com, odesk.com, freelancer.com, but be prepared for a bit of frustration and repetition as many you will be dealing with won't be native English speakers and while Skype is a good way to communicate, it's not the same as sitting face to face. Sometimes it's easier to engage someone who knows how to speak in Outsourcer to act as a go between.

The other site I like for design work is 99designs.com. Basic package for a logo is USD299 but you put up your brief, what sort of logo wou want and designers start submitting entries. You can then cull to a short list and get more detailed in the design until you finally select one. It's a bit more expensive then the others but I like it because you get heaps of different ideas thrown at you.

I've just started up another small company and we used 99designs for the logo work. Couldn't be happier. We're using Elance and Odesk as well. Elnance when we're looking for a team, or to hand a complete project too and odesk when we're more interested in engaging an individual. All good so far. One day we may actually get someone to pay us.

 

[happytige]

All very interesting Nico re "outsourcing".
The figures are certainly compelling!
"Outsource everything you can. ie. website design/development, logos, book-keeping, research. Go to sites like elance.com, odesk.com It's a global marketplace now...utilise it. My book-keeper is in India and she does an amazing job for $5/hr. My logo was designed for $50 in Russia. If I need some research done, or an article written, I tender it out. Had a friend who had a very basic information website developed for him for $10,000. If he tendered the job on an outsourcing website, he would have had change from $500."

But, what happens when you have outsourced everything to such an extent that there is no-one left in Australia earning enough money to be able to buy your products?

 

[Tigers of Old]

But, what happens when you have outsourced everything to such an extent that there is no-one left in Australia earning enough money to be able to buy your products?

Sell it to the cashed up Indians & Russians. If that fails do contract work for them for $10 an hour.

 

[Nico]

Yep, you can get a lot of what you need cheaper by using elance.com, odesk.com, freelancer.com, but be prepared for a bit of frustration and repetition as many you will be dealing with won't be native English speakers and while Skype is a good way to communicate, it's not the same as sitting face to face. Sometimes it's easier to engage someone who knows how to speak in Outsourcer to act as a go between.

Aint that the truth Baloo. Can be frustrating, you need a bit of patience, but the cost savings make up for it. Used 99designs too, good site.

 

[Nico]

But, what happens when you have outsourced everything to such an extent that there is no-one left in Australia earning enough money to be able to buy your products?

Why sell to Australia with a population of 20 odd million, when you can sell to countries with a billion plus?

 

[Baloo]

Aint that the truth Baloo. Can be frustrating, you need a bit of patience, but the cost savings make up for it. Used 99designs too, good site.

99designs is actually an Aussie company. I give them work whenever they are in the ballpark price wise..

 

[K3]

I've got a few 'concepts' on the drawing board atm, all web based stuff, but really need someone who can write up some apps for me, or come onboard as a stakeholder. The downside of being a non-technical founder...

Whilst I am going to NSW for a week, I will have to try and get to a few 'entrepreneur events' in town soon to see if I can get anyone interested. As someone in Melbourne, I have been looking at what is going on in Sydney, for start-ups, and it has left me disappointed with Melbourne's start-up scene ie. General Assembly dipped their toes in the waters here, ran a few events, but have now gone back to Sydney; Polenizer is in Sydney; Blue Chilli is in Sydney and the list really does go on.

I wonder what isn't happening here to put people, and businesses, off the idea of opening up in Melbourne?

Do any of you have any new ideas 'in the works' at the moment and if so, how are you finding getting it off the ground?