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RETIREMENT & LIFESTYLE PLANNING | |
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The Australian population offers an amazing number of opportunities for a savvy entrepreneur to generate extra income with a start-up business. We are increasingly dual-income, time poor with or without kids, diet conscious, environmentally aware, technologically challenged, elderly, single (by 2020 one thrid of the population will live alone), migrants, weekender owners, pet-owning, health, fitness, tourism, leisure seeking – all of which means we need more help.
Nici Read started up ?Wife Without Strings’, a business offering specialised domestic services to the time poor. All it took was a press release and a letter box drop. "I had people knocking on the door, ringing me … I ended up working six days a week with probably eight clients in no time at all," she said.
As demand grew, Read’s background in personnel helped her make the transition to a management role. Twelve years on, a team of 20 ?wives’ shop, clean, wash, iron, prepare dinner parties, pay the bills, register the car, arrange flowers, organise holidays and walk the dog for households all over Sydney.
Nici’s advice? "Be organised, have a cash flow plan, be virulent with debtors, good to your staff and offer a quality service."
Bev Brown’s family loved the wonderful chocolate tree she made each Christmas and encouraged her to develop the idea for a wider market. When retailer David Jones placed an order for 2000 trees, it appeared Bev was on her way. She pulled in a number of workers from within the small country town in New South Wales where she lives, and with the help of friends and family she expanded into larger premises.
The chocolate-making business did, however, experience a couple of financial setbacks. "I knew the cost of the chocolate but I didn’t factor in the cost of refrigerated semi-trailers to transport the trees, the petrol backwards and forwards to Sydney, paying so many people … I wasn’t experienced enough in business, I didn’t do my homework," she said. Gradually she found herself relinquishing her role in the creative process: "I ended up doing all the running around, not making, which is why I got into the business in the first place".
Like many other small business people, Bev offered a warning about expanding too rapidly: "A big order from a store or a chain can cause you to ?gear up? your business too quickly, only to find that by next season they have found someone cheaper or have dropped that product altogether."
Bev, who is also a practising draftswoman, now restricts the chocolate confectionery to a few targeted Christmas customers and has moved on to make customised wedding cakes. Word of mouth is terrific, but she is adamant that this new venture will remain manageable. "On average, only one a week, but they are good orders ranging from $300 to $800". Not bad for a cake! Would she still recommend starting a small business? "Absolutely. You’re your own boss, you have your own time, and you can work all night and play all day if you want to."
Think hobby. Making hats was once just a hobby for Sydney designer Maya Neumann — she now boasts a thriving international market for her sought-after creations.
Think laterally. Carolyn Imlach’s career in textiles and design came to an abrupt end when she was made redundant. Faced with unemployment, this single mother with two small children combined a love of cooking with an interest in olive oil and traditional recipes to develop a range of chemically free hand-made body care products. Four years on her company, Est Australia Pty Ltd, supplies 100 retailers Australia wide and also exports to the UK, Singapore and Hong Kong. "It’s life affirming both in its production and its use", says Carolyn, "It restores us." Fired with a similar passion, the well-known Maggie Beer turned her kitchen industry into an internationally successful gourmet produce company, employing a large and diverse staff.
Think Internet. ?SpeechForYou.com’ is an internet-based speech writing service. Founded by Perth businessman, Geoffrey Harris, the site claims 20 to 30,000 hits per month, with hundreds of customers worldwide purchasing tailor-made speeches, toasts and eulogies.
Think Portable. Adrian Osborne uses his artistic talent to draw lightning caricatures at private and corporate functions. Adrian also utilises the internet to promote and deliver his very personal art. Customers around the world can access his "virtual studio" and have their caricature delivered in minutes by visiting Adrian’s website at www.splatoons.com.au.
The same messages come through loud and clear from many small business people: do your research, do your homework, prepare a business plan, do a budget - including a cashflow - and stick to it.
A FEW TIPS –
- Getting started: If you’re passionate about something, the chances are you’re good at it. The first step is to ascertain your skills, experience and knowledge. If you’re missing a component—bone up on it; research; take lessons; join forces/combine skills.
- Getting help: For free advice on how to make your ideas work, contact the government run small business advisory service in your State or Territory. They’ll provide you with a Business Information Kit tailored to your specific needs and covering government regulatory requirements such as health, environment protection, licences, permits, tax, GST and insurance. Check their websites — key words: small business
- The kit also includes a guide to preparing
A Business Plan, an invaluable tool to help you focus on your goals, no matter how simple, and to devise an effective and businesslike plan of action.- Gauging the marketplace to ascertain the viability of your idea. Who are your customers? Who is your competition? What are your competitive advantages? Research—utilise the Internet, the Yellow Pages, libraries, the Australian Bureau of Statistics (ABS); talk to potential customers; network.
- Marketing and promotion: Customers need to know you’re there. Simple computer software can help you create effective flyers/brochures/letterhead /labels/business cards. The latter is an inexpensive vehicle to promote your service, product or business. You can’t buy word of mouth — a quality, well-priced product or service will generate this, but you can be pro-active by networking; creating a Website and/or a press release; a letter-box drop; generating publicity — perhaps a story in the local paper.
- Costing the job. Make sure you consider all the overheads — such as product, packaging, distribution, promotional materials, extra staff, petrol, insurance. Nici Read’s outlays are minimal; Bev Brown, however, needed refrigerated semis to transport her chocolate trees.
- Government assistance: There are a number of State-based incentive schemes, seminars, workshops, business counselling and mentoring programs — all aimed at small business. Again, check with the small business advisory service in your State or Territory.
- Public or product liability Insurance is not a legal requirement but it may be advisable for your venture. For impartial advice call Insurance Enquires and Complaints 1300 780 808.
Some useful websites:
www.business.gov.au
www.ausindustry.gov.au
www.abs.gov.au
www.austrade.gov.au
bli.net.au
www.ato.gov.au
www.yellowpages.com.au
www.google.com
www.smallbiz.nsw.gov.au
www.businessaccess.vic.gov.au
www.amazon.com
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Your Life, Your Retirement. PO Box 1150N Armadale North Victoria 3143 Australia
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Email: publisher@yourlifechoices.com.auIS PUBLISHED BY
Copyright Retirement Publishing Pty Ltd 2001 -- ISSN 1031-6620 ACN 088 049 218
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