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

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.

[ducatilover]

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

Said the punk rocker with a Honda
Real work? Whassat?

[unstuck]

Said the punk rocker with a Honda
Real work? Whassat?

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

[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!

[ducatilover]

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

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

[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...

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...

[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.

[bogan]

Step 1: Polish awesome example showpeices, maybe a frame
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.

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
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?
I'm planning to be a sole trader thingy

[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?
I'm planning to be a sole trader thingy

Fantastic idea

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

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 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

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

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.