So you want to run a small business? - Sam Hicks - Business Development | Marketing

Welcome to “So You Want to Run a Small Business.”

Sam, that’s me., I am a small business advisor, and I’m here to guide you through the essential steps and considerations involved in starting and running a successful small business.
Whether you’re in the early stages of planning or looking for support as an established small business owner, this page has valuable insights, broken into four sections with links and resources for you.

Section 1: Planning your small business

1. What problem are you solving? ( and how will you monetize it? )

Starting a small business begins with identifying a problem or need that your business will address. Take the time to research and understand the problem you aim to solve.
Are you simply duplicating another product or business? Research is your biggest friend; research ideas, names, requirements, costs, knowledge needed, and IP – just in case.

2. Will you sell via a shopfront or online?

Explore the pros and cons of physical storefronts and online sales channels to choose the right one for your business.
Create a dummy budget—a projection, if you will—to see what the costs may be. You can source budgeting templates online, i.e., Excel or something similar.

3. Who are your projected clients—your target market?

Defining your target market is crucial for successful business planning. You will need to learn how to identify and research your ideal customers.

A small or one page marketing plan* may just help you identify target markets. ( *opportunity to work with me)

Resources:

4. Will this business be a side hustle, or are you able to go full-time in the next 3–6 months?

It is vital to get all your ducks in a row and set SMART goals, objectives, and timelines.

Consider finances; speak to your accountant or seek out a small business accountant.

Who is or who will be your support network?
Do you have other responsibilities?

How many hours can you realistically allocate?
Small businesses are time- stealers, and the first 12 months can take a lot out of you. ( emotionally, physically and financially)

Section 2: Business knowledge and skills needed

In business you never stop learning, I learn something new everyday...

Personal skills needed ( now you cant do everything, hence the need for a tribe BUT you need a basic understanding of it all.)
Then aim for self-development with courses, workshops, further study, or outsourcing as needed or identified.

And yes, as a one-man band or one-woman band, you will need to wear many many hats in your small business.

Finance and bookkeeping: a basic understanding of requirements and responsibilities.
Marketing, digital marketing, and sales: what are the processes, apps available, AI, workflows, and plans?
E-commerce: selling online?
Staff and human resources: if you need a team, in person or a virtual team
Workplace wellbeing: health and wellness for you and your team—is paramount. Remember that old saying, work-life balance….
Protect your business ( IP considerations, legalities, your rights, etc )
Internal and external policies, terms and conditions, etc
Disaster resilience: What could go wrong? Do you have a backup plan?
Sustainability: income revenue streams, contracts vs wholesale/retail

Business knowledge

Financial management: This includes understanding how to read and prepare financial statements, such as balance sheets, income statements, and cash flow statements. You also need to be able to budget and track your finances to make sure that your business is profitable. Start small in Excel, seek out templates, then move to a business accounting package or software app. ( most come with training modules, videos, FAQ pages, and are subscription based etc )
Marketing: This includes understanding how to identify your target market, develop a marketing plan, and promote your products or services. You also need to be able to track the results of your marketing campaigns to see what is working and what is not. ( insights, analytics, etc…)
Operations: This includes understanding how to manage your day-to-day business operations, such as inventory management, customer service, and order fulfillment. You also need to be able to develop and implement systems and procedures to ensure that your business runs smoothly. Where possible, use or design software or applications to assist.
Human resources: This includes understanding how to recruit, hire, train, and manage employees. You also need to be able to create a positive work environment and resolve employee disputes.
Legal and regulatory compliance: This includes understanding the laws and regulations that apply to your business. You also need to be able to comply with these laws and regulations to avoid fines and penalties.

4. What do I need to know about running a small business?

Running a small business requires essential knowledge in areas like planning, budgeting, marketing, and legal and government requirements.
There are tips and resources to help you acquire this knowledge from websites such as Business Victoria.

What can you do?

Listen to podcasts, read books and/or journals, and seek out an older (not as in age) but more experienced business owner to seek insights.
You need to assemble a tribe – professionals, such as an accountant, a business mentor, a financial planner, and a solicitor, and ask questions to further your knowledge.
Join a local business group to network and learn, and most importantly…
Seek out online courses in the areas you need to upskill in.
Even if you outsource later, at least you understand enough about the topic to ensure your small business or small business idea goes in the direction you want it to!

5. What do I need to know before starting a business in Australia?

Learn about the legal and regulatory ( compliance ) requirements for starting a business in Australia.

For detailed information, visit
Business Victoria
Australian Tax Office
Fair Work Ombudsman

Don’t forget your local government; check out their websites to find out their business requirements.

6. What constitutes a small business in Victoria?

In Victoria, one common definition for a small business is:

Number of Employees: Generally, a small business in Victoria has fewer than 20 employees. This may vary by industry, with some sectors having different thresholds.
Annual Revenue: Small businesses may also be defined based on their annual turnover or revenue. The threshold for annual revenue can vary by industry and may be adjusted over time.
Industry Specifics: Some industries or sectors may have specific definitions of what constitutes a small business. For example, retail, manufacturing, and service industries may have different criteria.

7. What do you need to start a small business from home in Australia?

Explore the steps and considerations for setting up a home-based small business in Australia.

To start a small business from home in Australia, you will need:

An Australian Business Number (ABN): An ABN is a unique number that identifies your business for tax purposes. You can apply for an ABN online.
A business plan: A business plan will help you define your business goals, strategies, and financial projections. You can find templates and resources for writing a business plan on my site here or via Business Victoria.
Business insurance: Business insurance can protect you from financial losses in the event of a lawsuit, property damage, or other unforeseen events. There are a variety of different types of business insurance available, so you should choose a policy that is right for your business needs.
Licenses and permits: Depending on your type of business, you may need to obtain certain licenses and permits from your local council or state government. You can find more information about licensing requirements on the Australian Business Register website and via your local government area website under the business and planning sections.
A dedicated workspace: It is important to have a dedicated workspace in your home where you can conduct your business. This will help you stay focused and organized.
To consider IP—IP stands for intellectual property—protecting your ideas, IP Australia administers IP rights for trade marks, patents, designs, and plant breeder’s rights.

In addition to the above, you may also need to invest in equipment and supplies, such as a computer, tablet, printer, point-of-sale items, and communications.
You may also need to develop a website, social media accounts, and marketing materials to promote your business.

Here are some additional tips for starting a small business from home in Australia:

Choose a business idea that you are passionate about and have some knowledge of. ( make sure it solves a problem and isn’t out in the market already )
Do your research to understand your target market and the competitive landscape.
Create a strong business plan.
Obtain the necessary licenses and permits. ( do your homework first!!)
Market your business effectively.
Build relationships with customers and suppliers.
Provide excellent customer service.

Section 3: small business vs. start-up business

8. Understanding the difference

Small businesses and startups are two distinct types of businesses, each with its own set of characteristics, goals, and funding requirements.
Understanding the differences between them can help you decide which path aligns better with your business aspirations.
Here’s a breakdown of the key distinctions:

1. Characteristics:

Small Business:

Small businesses are typically traditional and established enterprises.
They often provide goods or services that cater to local or niche markets.
Small businesses usually have a stable and existing customer base.
The primary focus is on generating consistent revenue and profitability.
They tend to have a gradual and steady growth trajectory.
Can be run at home, in a venue, or as an online e-commerce business.

Start-Up Business:

Startups are innovative and tech-driven businesses with a focus on disruptive ideas. ( think of Uber and the taxi industry.)
They aim to create scalable products or services with the potential for rapid growth. ( think of Canva.)
Startups often target broader, global markets.
The primary focus is on market disruption and achieving high growth.
They frequently operate with uncertainty and may not immediately generate profit, or they may become a unicorn (a Launch Vic term) and blast everyone out of the water.

2. Goals:

Small Business:

The main goal of a small business is often stability and long-term sustainability.
Profitability and customer retention are key objectives.
Small businesses aim to maintain a loyal customer base and steady revenue stream.
Growth, while important, is typically gradual and incremental. ( get used to peaks, troughs and plateaus.)
Success is often measured by longevity and consistent profitability (return on investment = ROI).

Start-Up Business:

Startups typically have high-growth ambitions and are focused on scaling rapidly.
The primary goal is often achieving market dominance or becoming a significant player in their industry.
They may prioritize market share and user acquisition over immediate profitability.
Startups are more willing to take risks and pivot as needed to find a sustainable business model.
Success is often measured by disruptive impact, market share, or acquisition by a larger company.

3. Funding Requirements:

Small Business:

Small businesses often rely on traditional funding sources, such as personal savings, bank loans, or small business loans.
They usually seek financing for operational needs and growth.
Funding requirements are generally modest compared to startups, ensure you ask around for any grants that your sector may have attracted.
Small businesses focus on managing expenses and generating consistent revenue.

Start-Up Business:

Startups often require significant initial capital to develop and scale their innovative products or services.
They may seek venture capital, angel investors, crowdfunding, or grants.
Funding requirements can be substantial due to research and development and aggressive growth plans.
Startups prioritize attracting early-stage investors who are willing to take higher risks for the potential of substantial returns.

Section 4: Resources

1. Business Incubators:

Business incubators, like Melbourne Innovation, provide valuable resources and support to early-stage businesses and startups. They offer mentoring, workspace, access to funding, and networking opportunities via the federally available Digital Solutions Program.
If you’re considering starting a small business, understanding the support that business incubators can provide is essential, especially if your business aligns with their expertise.

2. Start ups – LaunchVic:

“We build the capability and confidence of Victorians to create, scale, and invest in startups”

LaunchVic plays a vital role in Victoria’s entrepreneurship ecosystem. They provide funding, mentorship, networking events, and educational resources to support entrepreneurs and startups. Whether you’re starting a small business or embarking on a startup journey, Launch Vic can be a valuable resource for guidance and support. They are dedicated to nurturing innovation and helping entrepreneurs achieve their business goals.

3. Additional Resources:

4. Courses

Here are some small courses on running a small business

Free courses from Business Victoria

These change often and there are many courses to choose from…here are a few notable ones:

Starting Your Small Business
Generating Cash Flow
Advanced Strategies to Taking Your Business Online
Cybersecurity
Innovator’s Mindset

Paid courses from Universities include these ( may change; please consult with the organisation directly)

Small Business Essentials (Swinburne University of Technology)
Running a Small Business (TAFE Victoria)
Small Business Start-Up (RMIT University)
Small Business Management (Victoria University)
Small Business Marketing (Holmesglen Institute)

Adult education, vocational courses, and organisational offerings

Many times, local community centers, neighborhood houses, local business and tourism associations, local governments, and chambers of commerce also partner with educational organisations or local experienced facilitators to deliver small courses or workshops.

These courses can cover a range of topics, including but not limited too:

How to start a small business
How to build a website
How to set up social media for a small business
Business planning
Marketing and sales
Finance and accounting
Human resources
Leadership and management

Some of the courses are offered online, while others are delivered in person. Some courses are also self-paced, while others have set start and end dates.
I recommend that you browse the websites of the different education providers to find a course that is right for you.

You should also consider your budget and time constraints when making your decision.

Running a small business involves careful planning, understanding your target market, and acquiring essential business knowledge.

Whether you’re looking to start a small business or need assistance growing your existing one, these insights and resources are here to help.

If you got this far and want to know more….Feel free to reach out to me for confidential, personalised small business advice or additional information or insights.
Contact me directly at sam@samhicks.com.au