Part One – Sadly another small business in my suburb has closed down this week – the owner just closed the doors, advised she was having a holiday – and quietly walked away – not to return.
Recently a similar retail business to mine was holding sale after sale – to the point that I wondered if there were issues there… and then the owner openly and transparently stated on Facebook that due to the economic downturn her business was no longer financially viable for her. Kudos to her! It takes a lot of courage to make that decision – to say enough is enough.
My business is a fashion boutique and a few weeks ago I noticed a dress shop in the next suburb has closed it doors. Scary for everyone still standing…
Times are tough for most owners of small businesses who make a living in retail. My suburb is a pretty tight knit group – everyone is saying how quiet it is – and we all agree 2016 has been the quietest in recent history. Food businesses may be a little different at the moment – they look to be doing really well, currently packed with the Christmas party trade.
I have a couple of friends currently looking at starting their own businesses – they are doing the due diligence – the SWOT test etc.
My advice – maybe surprising is…. GO FOR IT – do it – don’t die wondering…. BUT my caveat is – in the first instance don’t put all your eggs in your new business’ basket.
Keep working in your existing job, or work part-time while setting up your new business, a regular cash income is very important. In small business, loans and credit card interest debit is a killer while you are building up a business. Having an income that can pay your regular bills, mortgage and help pay for your new business costs is a fairly obvious essential.
Am I being cautious – yes… and do I love working for myself – an emphatic YES!!
I’m incredibly lucky – I have my little dress shop that brings in a regular albeit small income; I am a relocation consultant – which brings in a guaranteed income throughout the contract. I love to write and am able to schedule writing into most days because I work for myself.
So – if you are thinking about starting your own small business:
- Do your research – is there a need for your product/service
- Do the SWOT test – an oldie but a goodie
- What will your costs be: (rent, insurance, utilities, marketing, council costs, staff, storage, etc.) – make sure you prepare a thorough budget, and build a miscellaneous amount into it – there are always surprises!
- Who is your target audience – and how are you going to reach them?
- While building up your business what will you do for an income?
- Can you build more than one income stream into your new business?
Just a few things to ponder – Part Two will be posted soon…