Starting or buying a business can seem like a very attractive proposition, what with the promise of improved work/life balance and being your own boss, but it’s not all smooth sailing. Here are the important considerations all potential SMB owners should keep in mind when deciding to go into business for themselves.
Many of us think about being in business for ourselves. Some trades or professions lead naturally and easily into opening a business – carpenters, plumbers, hairdressers and solicitors spring readily to mind. Other sorts of work may not easily lead to a business.
All businesses take time to set up and develop a group of customers or clients. One question to answer may be: do you buy an operating business and thus have an immediate flow of income? This could be compared to using the money for the purchase of the business to live on while you develop your customer base.
Before going into a business, everybody should thoroughly investigate their chosen business. Some businesses require the investment of large amounts of capital and other businesses require smaller amounts of capital but may place at risk your private home if something goes wrong.
Look at other operators in your chosen industry and identify what is working and not working for those businesses.
Bring all your information together and work out your best estimate of your business profit on a weekly/monthly or annual basis. Is this level of income you calculate going to support your current lifestyle?
To learn more about the ins and outs of running a small business including how to structure your business – whether as a sole trader, partnership or company – Abby Practice is running a free workshop on Tuesday 20 March from 12 to 2pm at Suite 702, 90 George Street, Hornsby.
Hurry, seats are strictly limited!