A client asked me yesterday if I had any advice for someone starting out in business today & I gave her a a few simple suggestions but no real advice. After sipping a few gins last night & reflecting on it, I realised after 18+ years with my own business….advice, I have aplenty!
- Get a ‘real’ email address from day one. [email protected]
sounds like a backyard business. [email protected]
sounds like I know what I’m doing; whether it is true or not doesn’t matter…
- Create a fake accounts person until you can afford a real life one. “Colin” from accounts@ can chase invoices & be a little narky if the invoice isn’t paid on time. Allie, your sales contact is lovely & friendly & would never put a stop on your account if payment terms weren’t met.
- Charge for your time. You aren’t doing yourself nor your business any favours by driving around your city all day picking up stationery, wishing well, candles, linen etc for your client for free. This will come back to bite you in the butt as your clients will expect this as a free service & will eat into your profits when you start paying staff to do this job for you.
- Engage a lawyer for any commercial property leases. Due to not taking my own advice (hindsight), this one has definitely cost me major mullah!
- Free of charge work. Whether its from charities, styled shoots, influencers, raffle prizes or your 2nd cousins business launch. You need to work out what the cost is to your business’ bottom line. Will this FOC business come out of your marketing budget? Is charity A more deserved than charity B? What will you receive for FOC styled shoots? Will you be able to use the photos for your socials of website & will they actually work with your branding/style. Will giving an ‘influencer’ free products or services for their event convert to actual sales for you? Will one tag on their instagram page lead to your target market? They may have 100k followers but how many of them will be able to be converted into sales for your business & is that worth more than the FOC product they are receiving?
- Know the dollars & cents. Even if you aren’t a maths whizz, educate yourself on the basics of your profit & loss report and a balance sheet. There are workshops that are often free from state government sites like www.vic.gov.au
Even if you have a bookkeeper, you need to know money in/money out so you can plan for the business weekly/monthly/quarterly/yearly. Plan for your down season & ensure you have stowed away enough money to pay the bills through that time. Open a separate bank account for BAS & PAYG payments. At the end of each month, calculate what ATO payments will be owed & take it out of your main bank account. This way you will be ready when the bill comes & you haven’t accidentally spent it on a holiday thinking it’s profit.
- Don’t get complacent. If sales are good, it is easy to just assume business will always be the same constant flow. Contacts leave organisations & your working relationship with that company may finish. Never put all your eggs in one basket…ideally not more than 20% of your business with one company. Always be working on expanding your client database. Oh and whilst I am talking about databases…your instagram following isn’t your database. Instagram could close your profile or the app completely at any time. Create a CRM system for your business. If you ever want to sell your business, a well managed database is seen as a worthwhile asset.
- Create the right team. When you’re busy it’s easy to fill a role in your business with your cousin/friend/neighbour…I highly recommend avoiding doing this as it makes it really awkward when the person doesn’t work out long term for your business.
- The client is not always right. Have the confidence to say no. You don’t need to take every job that comes your way. Trust your gut. If the client doesn't feel like a good fit for you, make an excuse (if you feel you have to) & recommend another company for them to work with.
- Ask for help. Whether it’s advice from industry colleagues for suppliers, requesting google reviews from clients or even asking competitors for guidance. What is the worst that can happen..they say no!? One day they may even need your help!
So reach out if you need help or advice…I would love to hear from you!
Interior Designer I Business Owner I Author I Presenter I Executive Producer | Creative Director I Musician I Co-founder: Voice of Change
5 个月Love this so much and yes, you have plenty of great advice. I have admired your strength, tenacity and humour for all these years seeing you navigate the highs and lows and to see you thrive makes me a little warm and fuzzy You forgot to add , celebrate the wins. You don’t always see them but from looking from the outside there are some great wins to celebrate We are well overdue for a bubbles ??
Bringing creativity front and centre so that you can bring the real to your role!
5 个月You're so clever Al. Small business is in your veins. ??
Helping Small Businesses achieve positive brand awareness by implementing a Customised Digital Strategy and Social Media Management
5 个月Great advice Al!
Creating engaging Communications and Events that bring results
5 个月You 100% know what you're doing - and then some! Anyone setting up a business needs to read this ?? Great advice Allie Hammet ??
Managing Principal at ATK Partners Pty Ltd
5 个月Very well put Allie. You should enjoy a few gins more often if this is the result ??