Running your own business can be a rewarding experience. However, it can also mean exposure to new risks, long hours, hard work and frequent challenges. Before you start your business, it is important that you consider the reality, and the challenges, of running a business.
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1) The reality of starting a business
2) The challenges of running a business
3) Skills for business success
4) Dealing with skills shortages
5) Personal goals chart
Are you ready to start a business?
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Are you ready to start a business?
1) Check the reality of starting a business
Benefits of Starting and running a business
You can be your own boss,
achieve your dreams and
enjoy greater flexibility
Pains of Starting and running a business
hard work, frustrations and setbacks.
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Are you ready to start a business?
1) Check the reality of starting a business
To check your suitability to start a business, you must consider the
following realities you may face.
1. Unstable income
2. decrease the amount and quality of time you spend with your family.
3. your business viability and personal commitment is not strong enough
4. Postpone all personal goals
5. Must have exit strategy
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Are you ready to start a business?
2) The challenges of running a business
Starting a business can be risky and rate of failure is very high.
Seriously consider the following causes for business failure before you start
a business.
Market potential, Capital, business plan, risk analysis, growth, location
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Are you ready to start a business?
2) The challenges of running a business
Market potential : Many businesses fail because the market for their
products or services is too small to support them.
investigate the size of the market,
your competitors' strengths and weaknesses,
your points of difference, and t
he sustainability of demand for your product or service.
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Are you ready to start a business?
2) The challenges of running a business
Capital : Many good business initiatives fail due to poor funding
carefully consider your capital requirements
You will need enough capital to sustain your business until it begins to break
even or consistently return a profit.
Find out what funding might be required to start your business.
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Are you ready to start a business?
2) The challenges of running a business
Business plan : Prepare a detailed business plan to help you set out clear
goals for sales, growth and expenses. Operating without a business plan
can cause a business to lose direction and exceed its budget.
Risk analysis : list all your business and personal risks
Financial, technological, intellectual property, product sustainability
(relevance over time), legal, safety, staff retention. machinery breakdown.
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Are you ready to start a business?
2) The challenges of running a business
Growth : Plan growth carefully to give your business a much greater
chance of success. Some businesses expand too quickly, putting pressure
on their financial and management structures and damaging the quality of
their products or services.
Location : You may struggle to attract customers if your business is difficult
to find, hard to access, and surrounded by competitors. Retail businesses
in particular require a prominent and easily accessible location.
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Are you ready to start a business?
3) Skills for business success
Once you have decided that your idea could work as a business, you
should take the time to consider whether you have the necessary skills to
run your new business successfully.
You need a variety of skills to run your business. You may not have all of
the necessary skills right now. To help identify areas that need
development, consider whether you have skills in the following areas:
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Are you ready to start a business?
3) Skills for business success
effectively managing your team
leading, training, motivating and mentoring your employees
negotiating with employees and customers
researching business ideas
thorough understanding of financial reports and indicators
financial forecasting and cash-flow management
advertising and marketing your products
winning new business and growing your sales.
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Are you ready to start a business?
4) Dealing with skills shortages
If you don't have all of the skills you need to run and grow your business,
think about:
outsourcing complex or time-consuming tasks
recruiting the right staff to complement your own skills
improving your own business skills and those of your employees to make the most
of the talents of your team.
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Are you ready to start a business?
4) Dealing with skills shortages
How to improve required skills
enrol in TAFE, university or other learning institutions, including online courses
network with other business owners
join industry associations relevant to your business to learn more about networking,
training and conference opportunities
find a mentor with the Mentoring for Growth or Small Business Solutions programs
subscribe to online business website alerts
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Are you ready to start a business?
4) Personal goals chart
Make a list of your goals to help you identify whether you are ready to
start a business :
which goals your business will help you achieve
any areas of potential conflict (between personal and business goals)
how you can eliminate or reduce conflict between your goals
which goals are absolute priorities
which goals you are willing to compromise.
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Are you ready to start a business?
4) Personal goals chart
Create a list of your goals
Life area goals outcome Time frame Will your
business idea
help?
Personal
Family
Business
lifestyle
Community
spritual