Small business management?

[ducatilover]

I'm assuming some of you highly esteemed muppets have some small business experience, I'm starting up a sole trader business, doing stuff (I do lots of stuff) and I'm wondering if anyone has any general or helpful advice.

I suppose I better mention what I do,
Polishing (obviously, anyone who sees my builds or signature)
Mechanical junk
Slowly building up resources to do decorative metal finishing (small scale plating, anodising units) and am making an ultrasonic cleaner, for them annoying carb things.
May build up a small product base of the common things we all like to buy off eBay, just to save hassle of waiting 2-4 weeks on shipping, without the mark up of the local competition
Ideally I'd be restoring bikes/cars again, but in my area there really isn't much market :pinch:

It may be a little obvious already, I know sweet f.a about economics and business...
Any tips, not written in green would be appreciated, cheers

[unstuck]

Sorry dude, I leave that side of things up to the missus. I do the REAL work.:innocent:

[ducatilover]

Sorry dude, I leave that side of things up to the missus. I do the REAL work.:innocent:

Said the punk rocker with a Honda :bleh:
:laugh: Real work? Whassat?

[unstuck]

Said the punk rocker with a Honda :bleh:
:laugh: Real work? Whassat?

The stuff that makes you sweat, not this sitting behind a desk lark. Thats not REAL work.:innocent:

[Crasherfromwayback]

Any tips, not written in green would be appreciated, cheers

Let me know when you're up and running. I'm about to start the restoration of my RM400 and will need my nuts (and bolts) sorted!:innocent:

[ducatilover]

The stuff that makes you sweat, not this sitting behind a desk lark. Thats not REAL work.:innocent:

:D I don't sit behind a desk.
Except now, because my PC is at a desk in my garage... wait, shit :facepalm:

[Edbear]

Take your time and look at it as a two-year project. Don't spend a cent you don't have to for the first year and put everything into the business. Try not to take out a loan for anything and build out of profits and personal cash.

An accountant told me many years ago, if you're not making at least 33% GP you are not viable.

Bank your GST on every sale, as that will gradually build you a cushion to fall back on when you do have to start paying GST and tax. You don't have to register for GST but I found it better to do so as customers wanted a GST receipt and I was able to get GST refunds every period which went back into the business. Even now, after 2,1/2 years, I am still receiving a GST refund, but that won't last forever.

Work out what percentage of your home floor area you use for your business, such as office/workshop space and storage, and claim that percentage off your rates, mortgage and insurances. Keep a log book for your vehicle and claim that percentage for business use on your expenses, eg. fuel, WoF, Rego, maintenance, Insurance. Keep all records and receipts, (Wharehouse Stationary have Lever Arch files for $2 on special right now), and don't hesitate to call IRD with any questions. They are free, unlike an accountant, and will do anything they can to help if you are honest and open with them. They have let me off all penalties I ever incurred due to mistakes or failure to pay/report on time and have been very patient in explaining anything I didn't understand, they really aren't the scary monsters people like to paint them as. Unless of course you try to cheat and they audit you... :spanking:

Spend a lot of time considering your market and how to reach it with advertising. At first it may simply be a case of door knocking and introducing yourself with a couple of samples. Emailing is uncertain as you may not get a reply unless your email stands out. Find out what your customers want and think outside the square for solutions. People like it and respect you if you can solve their issues in a way they hadn't thought of before. Ask them questions, people like to talk and feel they are being listened to.

You personally are your business and personality wins over talent in gaining customers. If people like you they will use you. How you present yourself and deal with people will make the difference between success and failure.

Just my 2c... :innocent:

[Maha]

I have a certificate in small business management somewhere, I also have one for my 25yds breast stroke completed, to which I rate higher.
Yes Yards, it was a long time ago. :shifty:

[bogan]

Step 1: Polish awesome example showpeices, maybe a frame :innocent:
Step 2: ???
Step 3: Profit!

Ed's advice sounds good, if you go as a 'sole trader' all the business paperworks etc seems a bit easier, and works fine for startup.

[ducatilover]

Awesome post Ed, rep given


I have a certificate in small business management somewhere, I also have one for my 25yds breast stroke completed, to which I rate higher.
Yes Yards, it was a long time ago. :shifty:

Err, so does this mean, doing a cert in SBM is not very useful?
as just looking at what's available out there in terms of courses, so any more feedback on doing one would be appreciated

I do have an ex who just completed a business management thingy and she's probably going to be helpful (can't resist my manly musk)

[ducatilover]

Step 1: Polish awesome example showpeices, maybe a frame :innocent:
Step 2: ???
Step 3: Profit!

Ed's advice sounds good, if you go as a 'sole trader' all the business paperworks etc seems a bit easier, and works fine for startup.

I'll do one better, how 'bout a frame, swinger and pimp as rear sets? :laugh:
I'm planning to be a sole trader thingy :D

[Maha]

Err, so does this mean, doing a cert in SBM is not very useful?
as just looking at what's available out there in terms of courses, so any more feedback on doing one would be appreciated

I do have an ex who just completed a business management thingy and she's probably going to be helpful (can't resist my manly musk)

Correct, I just completed a course. At the end of the day, if you're a smart operator and have the backing of a few clever people looking over you, you'll be fine.
You wont get rich, and the hours worked to make ends meet can be horrendous. Put money away for TAXES is the best advice I can give...and never ever think too big.

You have heard about people in small businesses not often collecting a wage?....that also, can be correct.

[bogan]

I'll do one better, how 'bout a frame, swinger and pimp as rear sets? :laugh:
I'm planning to be a sole trader thingy :D

Fantastic idea :laugh:

One other tip, make a point of being e-mail friendly, most in that line of work aren't...

[ducatilover]

Correct, I just completed a course. At the end of the day, if you're a smart operator and have the backing of a few clever people looking over you, you'll be fine. Right, so I just need to get smart :bye:

You wont get rich, and the hours worked to make ends meet can be horrendous. Put money away for TAXES is the best advice I can give...and never ever think too big. I'm aware I won't be rich, but my completely garage hermit motorcycle lifestyle, with occasional rolling under rally car trips, works for me :laugh: and I aim to uphold it


You have heard about people in small businesses not often collecting a wage?....that also, can be correct. I am aware of that :) I've lived in some pretty crusty situations and I'm quite accustomed to having little/no money, keeps things simple. And I have no missus to run


Fantastic idea :laugh:

One other tip, make a point of being e-mail friendly, most in that line of work aren't... :yes: Haven't heard back from teh ano chaps then? Must be time to start buying bits for that eh?

[Gremlin]

From the strategy side, you also need to look at your competition. Who's doing what, and if you do something, how easy is it for someone else to compete against you (low barriers to entry).

The distributors we deal with struggle against everyone else. Essentially, it's easy to import some goods, throw on a markup and sell it out the door. Very easy for someone else to try and do the same, with a lower markup, and where does that leave you? You need to establish a point of difference, and most of the time Value added services are your best bet. Our core is IT management services, selling our knowledge and managing people's networks. Selling the computers, internet, printers etc is good, but alone wouldn't work. Also easier for the customer just to deal with us and we handle the rest.

In NZ, with the market so small, your best advertising will be word of mouth, but to publicise yourself, I'd be looking to get into some sort of bread and butter for companies, handling or being a contractor, dealing with them, then cream on the side is the smaller jobs. Obviously, your work would speak for you, do a good job and expect more business.

As with any business however, you need to figure out a niche that no-one has tapped, or can tap, and can you do it profitably. All very well saying you don't have much in overheads, but you should be factoring that in, otherwise it's not really profitable or viable.

[bogan]

:yes: Haven't heard back from teh ano chaps then? Must be time to start buying bits for that eh?

Nah, many would say why don't I just ring them, which is what I will do after trying to email them all first, because I prefer having the record of emails. If any of them respond to my emails then they will be first on the list of places I'd deal with, it just shows professionalism.

[ducatilover]

I'll keep my gmail primed Bogan :D

Gremlin, the reason I want to expand (eventually) in to anodising in small scale is because there aren't a heck of a lot of people willing to service normal people, because big scale set ups cost a lot more to run.
Same goes for most metal finishing.
I can happily fluff around in my garage, polish anything to any shine you want, and have a vibratory finisher for the annoying little bits. So, there should be a wee bit of business there.

The mechanical side isn't realistic until I shift areas though, would be a nice side earner in town :yes: One advantage is I have experience with weird shit and old stuff (the cars side of things)
I'm confident I'll offer exceptional service too.

You have some excellent points, thank you :sunny:

[unstuck]

Gremlin, the reason I want to expand , because there aren't a heck of a lot of people willing to service normal people, and have a vibratory finisher for the annoying little bits. One advantage is I have experience with weird shit and old stuff
I'm confident I'll offer exceptional service too.

What are ya, a polisher or hooker.:whistle::innocent:

[Edbear]

I have a certificate in small business management somewhere, I also have one for my 25yds breast stroke completed, to which I rate higher.
Yes Yards, it was a long time ago. :shifty:

Does Mom know about this..?

I got my 25 yard free style, I think that was about 1965... :blink:


Gremlin makes some good points, too. It's word of mouth that does it in the end.

The only reason I have survived and grown is through having very low overheads and living off my wife's wages for the most part. Although having sole agency for a top quality new tech product that everyone will eventually want as it is the way the whole world is heading, is a big advantage. I really have no competition and as word gets around, my sales are skyrocketing.

Quality and service are the most important, price is third on the list of customer considerations according to a survey not too long ago.

[Akzle]

fuck. ed hit it, rather him than me. too many words.

everything is tax deductable. you can start drinking espresso coffee, and writing off beer as "client entertainment expenses"

i read a great story about a guy writing off a 300k launch as a business expense, the govt argued it, took him to court, he ended up paying 5k with the govt paying the 295k balance.

if you're not savvy, get a good accountant, you'll find one by reputation, a good accountant pays enough tax on your behalf to keep you out of jail, but not so much that you're wasting money on the government. their fees are also tax deductable.

as ed says, the government will pay you to run a failing business. this can last forever (ask any carnies you meet)

dealing in cash does not oblige you to keep records and the words "i can do it 15% cheaper for cash" go down well with most buyers.

if you're turning over less than 60k a year you don't have to be GST registered.
you are not automatically GST registered when you tell the IRD you are no acting as a sole trader (you can do this on the phone, no paperwork or forms)
you can voluntarily register for GST, even if you're turning over less than 60k. this enables you to claim your expenses back. merely acting as a sole trader does not.


GREEEEEEN

[Edbear]

Nah, many would say why don't I just ring them, which is what I will do after trying to email them all first, because I prefer having the record of emails. If any of them respond to my emails then they will be first on the list of places I'd deal with, it just shows professionalism.

Emails these days are vital to business, but be aware that you need to adjust your settings so that they don't disappear after a month, and/or save important ones to file as well. Keep a file of each customer, their details and record of contact/services/sales.

Best to use Excell for this as I used Word and it's gonna take ages to update to Xero. :facepalm:

[Akzle]

oh, and if you are a "one stop shop" it might go down better, find local courier companies, form relationships with carriers or whatever so people can phone you, you say "this guy will pick it up off you tomorrow" they think "fuck, that's good service"

nowadays you're not thinking local markets, you need to think bigger, the internets is here, so use it.
(get a website, even if it's not a flash one, you're better if someone can google "who is good at doing the shit i want done" and your site comes up...) unfortunately the geeks you used to wedgie at school now on companies that make websites, they know this, their revenge is in their fees.

[Akzle]

Best to use Excell for this as I used Word and it's gonna take ages to update to Xero. :facepalm:

open source software wins. every day.

and OP - get a smart phone or blackberry, they are the devil, but if you can reply to emails <5 mins, people are going to jizz.

[ducatilover]

What are ya, a polisher or hooker.:whistle::innocent:

Both


I will do a website once up and running :yes: with pictures, magpies love pictures

[Edbear]

fuck. ed hit it, rather him than me. too many words.

everything is tax deductable. you can start drinking espresso coffee, and writing off beer as "client entertainment expenses"

i read a great story about a guy writing off a 300k launch as a business expense, the govt argued it, took him to court, he ended up paying 5k with the govt paying the 295k balance.

if you're not savvy, get a good accountant, you'll find one by reputation, a good accountant pays enough tax on your behalf to keep you out of jail, but not so much that you're wasting money on the government. their fees are also tax deductable.

as ed says, the government will pay you to run a failing business. this can last forever (ask any carnies you meet)
dealing in cash does not oblige you to keep records and the words "i can do it 15% cheaper for cash" go down well with most buyers.

if you're turning over less than 60k a year you don't have to be GST registered.
you are not automatically GST registered when you tell the IRD you are no acting as a sole trader (you can do this on the phone, no paperwork or forms)
you can voluntarily register for GST, even if you're turning over less than 60k. this enables you to claim your expenses back. merely acting as a sole trader does not.


GREEEEEEN

What Axzle means is that as long as your expenses outweigh your profits you will continue to get refunds. Last year I bought $20k more stock than I sold, plus expenses and depreciation meant I made a rather big loss for the year which meant no tax to pay and the loss is carried forward to this year to offset any profit I make.

GST periods are like smaller versions of the tax year and you offset the GST paid on purchases and expenses against the GST made on sales. This period I may not be able to offset enough as I am expecting a rather large order from a customer, equal to my average turnover for the period. I'd have to buy something substantial to offset it.

[Edbear]

oh, and if you are a "one stop shop" it might go down better, find local courier companies, form relationships with carriers or whatever so people can phone you, you say "this guy will pick it up off you tomorrow" they think "fuck, that's good service"

nowadays you're not thinking local markets, you need to think bigger, the internets is here, so use it.
(get a website, even if it's not a flash one, you're better if someone can google "who is good at doing the shit i want done" and your site comes up...) unfortunately the geeks you used to wedgie at school now on companies that make websites, they know this, their revenge is in their fees.

Also yes, Am I dreaming? I find myself agreeing with you! :blink:

yhp.co.nz is the only one I'll use. Of course, being my son-in-law makes it a no-brainer cost-wise. However he is one of only three or four in the world that we can find who know what he knows. A lot of people can do you a website according to your budget, but if you want to grow, Rudy is about the best.

For a reference, just ask John at James Blond Car Rentals, www.jamesblond.co.nz as an example of what he can do. John's business has quadrupled in four years from one of the little guys to one of the biggest and he has been having to import his own vehicles by the shipload to keep up with growth. Rudy scratch built the website.

[Zedder]

All the best for the future D.

[Maha]

All the best for the future D.

At the course I did years ago, the future was only ever talked about unfavorably....like the failure percentages within the the first two years.

[HenryDorsetCase]

Sorry dude, I leave that side of things up to the missus. I do the REAL work.:innocent:

you can do as much "real" work as you like, but unless you invoice it, and get paid for doing it, you're not actually doing work (in the sense of effort begets reward) you are playing.

my advice. talk to an accountant.

[Brian d marge]

Can't add much to what has been said
Except
If you want to be the same as most NZ businesses, don't reply to email , tell the customer you can do it and it will be ready tomorrow, of course it won't but that's what you tell em
Use some bat shite crazy software that no one uses or is so outdated as to be useless , or fail completely at using a computer
Not
Answer all email quickly
Under promise over deliver
Communicate clearly so that people are under no false illusions and get what they expect or more
Customer service is a pleasure not a hindrance
Don't spend money on shit you don't need for example computers
Employ Indians or Chinese they are cheap,

Stephen

[ducatilover]

At the course I did years ago, the future was only ever talked about unfavorably....like the failure percentages within the the first two years.

Yup, failure rate is pretty high :sweatdrop but, I won't be falling i to debt if it happens, I'm not far off the equipment base I'll need and I currently have no debts to show for it

If I was to purchase a business vehicle, how is that done? I already own a cage, how do I make that a business asset/car/whatever you call it? (Cage owes me nothing, quite seriously)

[bogan]

Also yes, Am I dreaming? I find myself agreeing with you! :blink:

yhp.co.nz is the only one I'll use. Of course, being my son-in-law makes it a no-brainer cost-wise. However he is one of only three or four in the world that we can find who know what he knows. A lot of people can do you a website according to your budget, but if you want to grow, Rudy is about the best.

For a reference, just ask John at James Blond Car Rentals, www.jamesblond.co.nz as an example of what he can do. John's business has quadrupled in four years from one of the little guys to one of the biggest and he has been having to import his own vehicles by the shipload to keep up with growth. Rudy scratch built the website.

If he does scratch built websites, he isn't what Doug needs. Focusing on a service rather than a product means the site can be a lot simpler; example work done, possibly rough price estimates (or just what the work done examples cost), work capabilities, contact details, maybe a few other things. The key here is a good landing page, beyond that he doesn't need any fancy databases or shopping cart things. Simple adaption of a template site is going to be the most cost effective I reckon.

[ducatilover]

Answer all email quickly
Under promise over deliver
Communicate clearly so that people are under no false illusions and get what they expect or more
Customer service is a pleasure not a hindrance
Don't spend money on shit you don't need for example computers
Employ Indians or Chinese they are cheap,

Stephen

:2guns: This is something I can take care of.
Fortunately computers will never be an issue, get high quality gear from my brother, the family computer nut.

[ducatilover]

If he does scratch built websites, he isn't what Doug needs. Focusing on a service rather than a product means the site can be a lot simpler; example work done, possibly rough price estimates (or just what the work done examples cost), work capabilities, contact details, maybe a few other things. The key here is a good landing page, beyond that he doesn't need any fancy databases or shopping cart things. Simple adaption of a template site is going to be the most cost effective I reckon.

I have a mate in that business and many others whom are capable of helping there :D

[Zedder]

At the course I did years ago, the future was only ever talked about unfavorably....like the failure percentages within the the first two years.

Well, the course I did a few years ago talked about Positive Mental Outlook = Other Peoples Money, among other things.

[unstuck]

you can do as much "real" work as you like, but unless you invoice it, and get paid for doing it, you're not actually doing work (in the sense of effort begets reward) you are playing.

my advice. talk to an accountant.

I get paid rather well for doing what I do thank you, and my wife does rather a good job with the paper work. And I have heaps of time left for playing too.:yes:

[Akzle]

GST periods are like smaller versions of the tax year and you offset the GST paid on purchases and expenses against the GST made on sales. This period I may not be able to offset enough as I am expecting a rather large order from a customer, equal to my average turnover for the period. I'd have to buy something substantial to offset it.
you have the option to do GST returns less frequently. do it, i've yet to meet the government guy who can be bothered going through 100 boxes of faded, coffee stained receipts and used hypodermic needles. second option, give me your car for 5$ and a bag of chips.


If I was to purchase a business vehicle, how is that done? I already own a cage, how do I make that a business asset/car/whatever you call it? (Cage owes me nothing, quite seriously)

post shop. register it. you may need to be GST registered for this to get a number to put in a box (there's lots of that if you deal with teh govt.) register it under your name, but ensure the "trading as/representing" field is either your name AS A BUSINESS or your business name.

your "trading as" name can be anything. i can be bob trading as guy who paints your fence in the morning, and bob trading as guy who drinks your beer and makes passes at your incredibly good looking wife, that evening, next day, bob trading as bob smoking joints and building a deck inc.
etcetera.

[Edbear]

If he does scratch built websites, he isn't what Doug needs. Focusing on a service rather than a product means the site can be a lot simpler; example work done, possibly rough price estimates (or just what the work done examples cost), work capabilities, contact details, maybe a few other things. The key here is a good landing page, beyond that he doesn't need any fancy databases or shopping cart things. Simple adaption of a template site is going to be the most cost effective I reckon.

Of course he won't need anything like that for starters, I was just giving an example of what Rudy can do. He can also do low-end start up sites to budget.

[Maha]

Yup, failure rate is pretty high :sweatdrop but, I won't be falling i to debt if it happens, I'm not far off the equipment base I'll need and I currently have no debts to show for it

If I was to purchase a business vehicle, how is that done? I already own a cage, how do I make that a business asset/car/whatever you call it? (Cage owes me nothing, quite seriously)

Your attitude will see that the foundations are firmly laid..:yes:

[unstuck]

Your attitude will see that the foundations are firmly laid..:yes:

Yep, I agree.:yes:

[cynna]

got a degree in accounting 18 years ago and never used it - now ive ended up doing the accounts for a mate of mine that has started a painting business in chch... bit stressful but accounting software takes care of most of the records these days. xero.com is a good one if you are looking for one to use

[Zedder]

Yup, failure rate is pretty high :sweatdrop but, I won't be falling i to debt if it happens, I'm not far off the equipment base I'll need and I currently have no debts to show for it

If I was to purchase a business vehicle, how is that done? I already own a cage, how do I make that a business asset/car/whatever you call it? (Cage owes me nothing, quite seriously)

You're in great "shape" compared to many small business startups.

I did a course on marketing/sales when I started out but a good accountant has also worked very well for me in terms of claiming business related expenses etc.

[Akzle]

btw, the fee schedule for "bob trading as bob's start up business consultant services" runs to about 200$/word.

your invoice is in the mail.
15% discount if you pay in cash...

[Gremlin]

At the course I did years ago, the future was only ever talked about unfavorably....like the failure percentages within the the first two years.
The problem is, some people are leaders and others are followers. Ergo, some can run a business, but plenty can't. The other problem is that many think owning your own business is a wicked cool way of working a few hours, making lots of money, and basically a ticket to success.

Those that own one know far better. Most work long hours for little pay, and once the bills are paid and the tax man takes his cut, the little you're left with makes you wonder why you keep doing it...

As long as you go into it with your eyes open and goals realistic then there is no reason why you can't carve out your piece of the market. Just make very sure to invoice all customers correctly, and make sure that money comes in on time. It's very easy to spend lots, then not invoice and wonder why the bank account is empty.

[ducatilover]

btw, the fee schedule for "bob trading as bob's start up business consultant services" runs to about 200$/word.

your invoice is in the mail.
15% discount if you pay in cash...
YOu can suck my farts, I'll send you an invoice for that :yes:

You're in great "shape" compared to many small business startups.

I did a course on marketing/sales when I started out but a good accountant has also worked very well for me in terms of claiming business related expenses etc.
Am I? That's got to be an advantage :laugh:
I'm bound to have a mate who is an accountant somewhere... I think one of my Cuzzies is. :Punk:


The problem is, some people are leaders and others are followers. Ergo, some can run a business, but plenty can't. The other problem is that many think owning your own business is a wicked cool way of working a few hours, making lots of money, and basically a ticket to success. Would be nice if it was that way.
The jobs I've been doing have been slightly longer in hours than one would like to admit, but, it's something I don't mind doing and I have no other commitments, so I have plenty of time on my hands.


Those that own one know far better. Most work long hours for little pay, and once the bills are paid and the tax man takes his cut, the little you're left with makes you wonder why you keep doing it... Have a few mates working for themselves in various areas and they all agree with this, my father is self employed and works silly hours. He's doing well though


As long as you go into it with your eyes open and goals realistic then there is no reason why you can't carve out your piece of the market. Just make very sure to invoice all customers correctly, and make sure that money comes in on time. It's very easy to spend lots, then not invoice and wonder why the bank account is empty. I'm trying to get the eyes open as well as I can :yes:

[wysper]

I have a mate in that business and many others whom are capable of helping there :D

The other couple of things I would look into are business mentor and networking.

Sounds all buzz-wordy, but have heard some good things about both. Worth looking into. I think the mentoring is free for a couple of years. Course might not go well if you get a crap mentor!

[Gremlin]

Have a few mates working for themselves in various areas and they all agree with this, my father is self employed and works silly hours. He's doing well though
Good for him. Obviously, on the plus side, you put the effort in, you get the rewards out. Not like working for someone, and you get the fixed wage (or comission if you're on one). I've met a few building industry contractors, and several were multi millionaires, but you wouldn't know when they pitched up in singlets and stubbies :laugh: Again, they worked bloody hard to get to where they are.

[ducatilover]

The other couple of things I would look into are business mentor and networking.

Sounds all buzz-wordy, but have heard some good things about both. Worth looking into. I think the mentoring is free for a couple of years. Course might not go well if you get a crap mentor!
I'll certainly look in to this, thanks :D

Good for him. Obviously, on the plus side, you put the effort in, you get the rewards out. Not like working for someone, and you get the fixed wage (or comission if you're on one). I've met a few building industry contractors, and several were multi millionaires, but you wouldn't know when they pitched up in singlets and stubbies :laugh: Again, they worked bloody hard to get to where they are.
I have an uncle and several mates who have mate it big by starting off doing the hard work, obviously one must be rather on to it to get that far. :yes:

[unstuck]

Mentoring is a great idea. IMO.:yes:

[Mom]

Any tips, not written in green would be appreciated, cheers

Do you have a business plan? That is probably one of the most important tools a small business needs. It is a living document, that guides you to make good, solid and informed decisions.

Are you any good at budgetting? You will need to make a cashflow predicition to help you manage your finances. It will also highlight any areas where you might be running tight for funds so you can actually PLAN for them.

Are you aware of how income tax is paid as a business? Be aware taht you get one years grace and then have to pay almost 2 years worth the next year, many small businesses have failed in the 2nd year as a result of that one little issue alone.

Do you have a good accountant?

I could go on...

Whistle out if I can help.

[ducatilover]

Do you have a business plan? That is probably one of the most important tools a small business needs. It is a living document, that guides you to make good, solid and informed decisions. . Working on this, I'll be getting some help with it, being such a n00b and all. I do know what I want from this and where I will be aiming to be.


Are you any good at budgetting? You will need to make a cashflow predicition to help you manage your finances. It will also highlight any areas where you might be running tight for funds so you can actually PLAN for them. Err... nope, but I can learn :D


Are you aware of how income tax is paid as a business? Be aware taht you get one years grace and then have to pay almost 2 years worth the next year, many small businesses have failed in the 2nd year as a result of that one little issue alone. Nope, no idea at all (yet)


Do you have a good accountant?

I could go on...

Whistle out if I can help. Accountant? Not yet, but I'll get one :yes:
Thanks Mom

[Mom]

Working on this, I'll be getting some help with it, being such a n00b and all. I do know what I want from this and where I will be aiming to be.

Err... nope, but I can learn :D

Nope, no idea at all (yet)

Accountant? Not yet, but I'll get one :yes:
Thanks Mom

Business plan is actually hard work and very important. First, think of your mission statement. What you actually want your business to be. Be BOLD! "Bobs Burgers are the BEST BURGERS this side of the black stump"

Now you need to justify the hows, whys, wheres and what have yous, to ensure that Bobs Burgers really WILL be.

How do you propose to be the best?

Do an indepth S.W.O.T. analysis.

Strengths, what are they? How can you improve on them? How can you promote them? What makes you different?

Weaknesses, we all have them, be honest. How can you mitigate them?

Opportunities, must be boundless, explore them, only one is the burger business, offer better delivery/customer service. Think, think, think.

Threats, yepper, lets look at the negatives here. Think of anything that might stop you, put your business at risk. Now you really have to think about how you will cope with/deal with/avoid/mitigate.

*Hint - some of these overlap.

Be honest.

What is this going to cost? Will you need to employ staff? What is involved if you do employ staff? How are yu going to manage if no one turns up for work and you have 2 bazillion burgers on order?

You get the picture eh?

:love: Mom

[Akzle]

re: business plan
there is a template for one from business.govt.nz, or used to be. you will need to complete this if you're applying for a MSD start up grant (more free money from the govt)
a business template for selling crack will be about 10 pages long.
include graphs, desk jockeys love graphs.

if you can't convince them, then baffle them with bullshit. use big words particular to your industry

(ie pump jockey is a "fuel transfer technician", chippy is "building systems assembly engineer")

[ducatilover]

Business plan is actually hard work and very important. First, think of your mission statement. What you actually want your business to be. Be BOLD! "Bobs Burgers are the BEST BURGERS this side of the black stump"

Now you need to justify the hows, whys, wheres and what have yous, to ensure that Bobs Burgers really WILL be.

How do you propose to be the best?

Do an indepth S.W.O.T. analysis.

Strengths, what are they? How can you improve on them? How can you promote them? What makes you different?

Weaknesses, we all have them, be honest. How can you mitigate them?

Opportunities, must be boundless, explore them, only one is the burger business, offer better delivery/customer service. Think, think, think.

Threats, yepper, lets look at the negatives here. Think of anything that might stop you, put your business at risk. Now you really have to think about how you will cope with/deal with/avoid/mitigate.

*Hint - some of these overlap.

Be honest.

What is this going to cost? Will you need to employ staff? What is involved if you do employ staff? How are yu going to manage if no one turns up for work and you have 2 bazillion burgers on order?

You get the picture eh?

:love: Mom


re: business plan
there is a template for one from business.govt.nz, or used to be. you will need to complete this if you're applying for a MSD start up grant (more free money from the govt)
a business template for selling crack will be about 10 pages long.
include graphs, desk jockeys love graphs.

if you can't convince them, then baffle them with bullshit. use big words particular to your industry

(ie pump jockey is a "fuel transfer technician", chippy is "building systems assembly engineer")

Thanks guys, will find me a template and go from there!

[bogan]

Thanks guys, will find me a template and go from there!

Business Model Canvas is one we were taught to use, seems to be one of the easier ones to pick up.

[ducatilover]

Business Model Canvas is one we were taught to use, seems to be one of the easier ones to pick up.

http://forums.sidhe.co.nz/attachment.php?attachmentid=8814&d=1340582835 Cheers bro

[Ocean1]

Are you aware of how income tax is paid as a business? Be aware taht you get one years grace and then have to pay almost 2 years worth the next year, many small businesses have failed in the 2nd year as a result of that one little issue alone.

Yeah, it's a funny way to encourage new enterprise, eh?

You can add provisional tax and ACC levies to that wee new business killer welcome. Make sure you've got about half of your first years total gross income stashed away ready to pay these at typically 18 months in.

Oh, I see you've said you're not going to spend much on capital equipment, but be aware anyway that even though you might have spent, say $10k on a polishing widget you've still got to pay tax on that $10k, even though you don't have it any more. You do get to claim depreciation on the asset, possibly amounting to a couple of hundred for that first year.

Get an accountant. I told mine that I'd pay him to do my annual return but I'd be doing one also. If he managed to save me more than he invoiced me for I'd keep him on for another year. That was 25 years ago.

[ducatilover]

Yeah, it's a funny way to encourage new enterprise, eh?

You can add provisional tax and ACC levies to that wee new business killer welcome. Make sure you've got about half of your first years total gross income stashed away ready to pay these at typically 18 months in.

Oh, I see you've said you're not going to spend much on capital equipment, but be aware anyway that even though you might have spent, say $10k on a polishing widget you've still got to pay tax on that $10k, even though you don't have it any more. You do get to claim depreciation on the asset, possibly amounting to a couple of hundred for that first year.

Get an accountant. I told mine that I'd pay him to do my annual return but I'd be doing one also. If he managed to save me more than he invoiced me for I'd keep him on for another year. That was 25 years ago. :yes: Thanks for that mate

[Mom]

Yeah, it's a funny way to encourage new enterprise, eh?

Get an accountant. I told mine that I'd pay him to do my annual return but I'd be doing one also. If he managed to save me more than he invoiced me for I'd keep him on for another year. That was 25 years ago.

Yepper, and one of the biggest reasons new businesses fail.

Always one of the first things I suggest might be worth looking into (in my non informed, non paid(I dont have insurance)ways), take it or leave it, (I dont have a clue) ways, (take my advice at your own peril) ways.

A good accountant is worth his/her weight in gold. That one I will stand by!

[Brian d marge]

Business Model Canvas is one we were taught to use, seems to be one of the easier ones to pick up.

yep I got and use/ed that one !!

Stephen

[Zedder]

[QUOTE=ducatilover;1130497554]
Am I? That's got to be an advantage :laugh:
I'm bound to have a mate who is an accountant somewhere... I think one of my Cuzzies is. :Punk:

Yes you are. You wrote "not far off the equipment base I'll need" and "no debts".

I've met owners of, and read about, small businesses that have no equipment and are in big debt to start with. Also, you have a solid experience base. With a written business plan and qualified input like others have mentioned you'll be even better positioned.

[ducatilover]

Yes you are. You wrote "not far off the equipment base I'll need" and "no debts". :yes: I don't like/want/need debts, so far anyway. The remaining equiptment I need will be built and put together by meself, probably with a lot of help from rather clever chaps I know


I've met owners of, and read about, small businesses that have no equipment and are in big debt to start with. Also, you have a solid experience base. With a written business plan and qualified input like others have mentioned you'll be even better positioned. That's a road I really want to avoid
Haven't had time to do the business plan draft tonight yet :facepalm: everything in this thread so far has been a great help, thanks guys! I'd buy you all a beer, but my wallet said no :innocent: