Launch your business with practical advice from startup experts.
Starting a business? Include accountants, friends, lawyers, and customers in your plans – and know which may be sources of either pitfall or advantage by their presence, says someone who’s been there more than a few times himself.
Bob Weir, a founder of Pinpoint Business and author of several business books, including Why Businesses Fail, has made it his mission to help others avoid common snags and problems. “Having started my own businesses and helped many others start their businesses over the years, we’ve made mistakes and had to learn the hard way,” he says. “But JumpStarter can help you avoid the blunders with clear, easy-to-follow guides - for free. They’ve condensed knowledge and experience into down-to-earth tools to get you up and running quickly and easily.”
JumpStarter has a primary focus on setting up the online side of a new enterprise, but Weir says there’s more to it than that. “A suitable online presence is essential for businesses today. But just as important are real-world lessons and a heads up on the missteps that many make in their first forays into creating a business of their own. Those mistakes have already been made, so you don’t have to repeat them.”
Weir says securing professional support at the outset is among the biggest factors for lasting success. “I talk a lot about why seeking expert advice is essential in getting a successful online presence, but accessing legal, accounting and other business services is equally crucial,” he says.
This is in some ways attached to that other common and potentially disastrous ‘good idea’: starting a company with a mate or a family member, without careful thought.
“We’ve all been there, a couple of beers with a good mate or family member, then rushing into creating a business,” Weir notes. “But do yourself a massive favour: save yourself and your mate a ton of grief and heartache by getting the best advice up front before you commit to a new venture.”
What’s perhaps surprising is that this doesn’t necessarily cost an arm and a leg, or any limbs at all. “While good legal advice might cost you money at a time your funds are limited as a start-up, you can’t put a price on the value good legal advice provides. If things go wrong, you want good advice and sound legal agreements in place so everyone knows where they stand,” he explains.
Without that, he says losing some money might be the least of your problems. “Friendships, family relationships, and the business itself could all go down the drain.”
Similarly, a good accountant – and good accounting systems – are worth their weight in gold. “Funds are often very tight when people are setting out. The temptation is there to do it yourself on the cheap.” The number eight wire approach will only get you so far, however. “A good accountant doesn’t just take care of the numbers and the GST and other filings. They should also understand your business and provide some guidance,” says Weir.
Using a proper accounting system from day one is essential, and with modern software available as a subscription, it doesn’t cost much. “Nor does an accountant. If you’ve got someone handling tax returns, you can often get away with not a lot more than a hundred dollars a month.”
If you don’t do that, as Weir himself knows all too well, the months can pass by far too quickly. “I have seen too many business owners fail to place enough attention on the small financial details with receipts, tracking the expenses, invoices and where the cash is going. Before they even realise it, their business is in trouble, they aren’t meeting their tax requirements and, worst of all, they have no idea why.”
Even something as simple as bank accounts should be done right, he adds. “Definitely set up a business account. You should always keep your personal spending separate from your business spending, so set up a new account straight away. You won’t regret it.”
Finally, marketing is routinely a sticking point for the fresh startup. “Many of us quickly realise that finding the work is harder than doing the work,” Weir observes. “You may think you’ve hit the jackpot with a great idea, but bear in mind the only thing that matters is what your potential customers think. Remember that you’re not in business for you, you are in business for those customers. What you think is cool and will work is always secondary to what your customers want and need. Formulate a plan for how you’ll reach the market, and get used to the idea of promoting yourself. Marketing can be fun, but be prepared to put in the hard work.”
JumpStarter’s comprehensive and growing online resources include guides, downloads, exercises, advice and insights, helping aspiring Kiwi entrepreneurs to start their business fast and with minimal fuss. And while JumpStarter aims to help you avoid the pitfalls, Weir is clear: “You will make mistakes, and that’s to be expected and quite OK. But wherever possible, you want to sidestep the silly things that good advice will ensure you avoid or, worse still, the serious mistakes that could end your start-up before it even begins.”
For more information visit: jumpstarter.co.nz