Parramatta is a vibrant city and a great location to establish and grow a business. If you have plans to launch a new business venture in 2021, or to scale up or branch out your existing business, focus on the right foundations to achieve success.
The Realise Business team loves working with Parramatta businesses at all stages of their business journey. To set you on the right path for the months ahead, the team has put together some pointers on boosting your business.
Before you start analysing your business idea
Starting a new business is exciting. Many successful people chose to start a new business because they had a particular passion, or wanted to become their own boss, but they also did their homework first. They analysed their idea before they committed to long-term obligations like loans or leases.
If you are thinking of launching or revitalising a business this year, put your plan through its paces first. Book a meeting with a Realise Business advisor to undertake a feasibility check.
The feasibility check will help you dig deeper into the structure, processes, team and marketing strategies founding your business venture. It will help reveal the viability of the business idea.
The key issues you should consider are sales, leases and loans, wages, permits and the market. Some areas you should explore include:
- How many sales would you need to make to cover commercial lease payments or loan repayments if you are locked in for several years?
- What will be the real cost of employing one or more people? As well as wages, factor in superannuation and workers’ compensation. Different arrangements (such as full time or casual) carry specific legal obligations.
- What type of permit will your business need to service customers? For example, if you are planning a dining establishment requiring a permit to serve alcohol – what will the permit cost and where do you apply?
- What is the current market like for your business idea? Conduct a SWOT analysis of strengths, weaknesses, opportunities and threats to test your idea and determine its key point of difference.
Learn more about launching a business to gain confidence in your plans. Attend a free Start a Business Workshop online – The Realise Business team runs free workshops with tips and knowledge on starting a business. The next workshop is on 17 March and you can register your place here.
When you start – operating your business
After analysing the viability of your business idea, set up solid foundations by following these steps.
- Step 1. Set up your accounting systems using an online platform like Xero. The one system can help you crunch your numbers and keep track of tax invoicing and employee obligations – and will measure your profitability in real time.
- Step 2. Develop a marketing plan based on your SWOT analysis, to target the right people with your product or service.
- Step 3. Secure the correct registration and licenses for your industry. Laws and compliance regulations related to owning and running a business often change, so set up a system that updates you about changes to tax, insurance, workplace health and safety, and so on.
- Step 4. Draw up a two-year financial plan so you can meet your obligations and make a profit. Refine the plan as your business grows.
Scaling up – a profitable and sustainable business
With the right foundations you can scale your business base as time goes on. Develop systems and strategies that suit the size and growth of the business.
Even if you started out as a solo business, scaling up will mean engaging the right employees. Getting the best from those employees will also rely on creating a great culture.
Technology will be important to your success. It will help you analyse, strategise and measure.
Regardless of business type, the key to stability and longevity is pretty much the same: having the right business model.
A free advisory service with a Realise Business Advisor will help you learn about business models, as well as systems, hiring strategies and technology, so you can set the course for success. Book your advisory session today.