Mental toughness and running a small business

What is mental toughness, you may well ask?

It's one of those qualities many of us are able to readily recognise in our sporting heroes - whether it's tennis, football, soccer, basketball or athletics. They embody the ability to hang in there and persevere, even though they're being out-scored or out-pointed by their competition.

We admire them for their tenacity to keep on fighting, despite "the odds" being against them. They have that mental toughness to avoid letting any thoughts of defeat or despair take hold. They steadfastly refuse to allow any fear of failure to paralyse them and prevent them from whole-heartedly continuing to compete.

They continue to push themselves to the limits of their capabilities - consistently striving to find ways of improving their performance.


Business and sport share much in common
                                                                            
Running a small business and playing competitive sport both require you to be aware of your competitors. Your success will be measured not just by the quality of your own decisions and actions - but also by how these compare to those of your competitors.

You enter the game with a goal and a particular strategy in mind .... But circumstances can change, the playing conditions can turn out to be quite different to what you'd anticipated - and so you you've got to be able to adapt.

In sport, we've seen numerous instances where the player with more heart beats the player with more "natural ability". In business, we've seen the same dynamic where the entrepreneur with greater "grit" achieves more success than the one with more so-called "intelligence"

Sometimes, you'll make mistakes ....... You make the wrong decision - or your execution on part of the plan was flawed. ....... Yep, even the best players will sometimes get it wrong - and so too have business people like Steve Jobs and Walt Disney and Richard Branson

But the one's with mental toughness bounce back. They learn from their mistakes - and then start moving forward again.. 

And when you're running a small business, like when you're competing in sport, you've got to be able to "read the game" and be willing to change your game-plan when it proves necessary ....... You've got to be able to admit when something's not working - which takes some humility - before you can begin to turn things around  ........Not everyone can do this. By the way, you might be interested in some tips on related topics like Self-Motivation and also Focus

So, what are some keys that can help you to develop your mental toughness? Here are seven ....

1. Decide what you need to focus your attention upon - clarify your goal or your priority. Avoid letting distractions get in the way and diverting your attention from what is important
2. Expect there will likely be some set-backs along the way - but view these as temporary. Remain optimistic that you can turn things around by learning, growing and improving. When problems arise, focus on finding a solution rather than becoming immersed in the effects of the problem 
3. Identify in difficult situations what is within your control - and what is beyond your control. Don't waste time and effort worrying about those things outside of your control
4. To be successful in business, like sport, you need to be well trained. And then learn to trust your training, trust your process, when the pressure is on. So ensure that you've invested time and effort in regular and consistent training that develops your business skills over time - and which in turn will help to foster your self-belief
5. Motivation can sometimes wane - but developing good business routines, systems and self-disciplines leads to consistency of performance. Mental toughness is developed by consistently doing the things that you know you should do
6. Avoid allowing your mind to dwell on mistakes - by all means you've got to learn from them - but then it's about drawing a line in the sand and moving forward
7. Remind yourself of some of your achievements, so as renew your faith in the strengths and capabilities that you posses, that will enable you to get through any difficult times

Here's a short video clip that offers tips for athletes on how to develop mental toughness - offering some good insight into how your mind can be either a friend or a foe and affect your performance.... . I think ALL of the tips are equally relevant if you are running a small business  See what you think ....

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About the author
Brian Carroll is the founder of Performance Development, a training business in Melbourne, Australia.  He is an experienced management coach with a passion for helping people achieve their goals in life and business. You can find out more about Brian at his Google + profile

A young entrepreneur having a Monsta impact in the surf-wear business

Building a good business can be the pathway to fulfillment and freedom

One of the things that I really enjoy about this blog, is that I get the chance to connect with all different types of people who share my interest in learning how to more effectively run and grow a successful small business. People that come from different backgrounds - with businesses from a range of different industries, based not just here in Australia, but all around the world.

And so many of these business owners have stories about achieving success that can inspire us in our own journey - as well as lessons and tips they freely share which serve to inform and educate. Well, keep on reading folks, 'cause you're going to hear about a young man who offers you plenty of both!

Although business should not dominate our entire life - boy it plays such an integral role in determining our overall sense of well-being, don't you think? .…. We need to find a way to get the business part right and also gain satisfaction from what we are doing. Building a good business provides us with financial security - which in turn offers us freedom to choose the lifestyle that we want. When it all comes together,  then life becomes a whole lot more enjoyable.

And much more stress-free when we’re not worrying about whether we can pay the bills!

Yes, you're in business to make money - but what else?

There's nothing wrong with being in business to make money. To stay in business of course you need to be making more money that what you're spending…... But running your own business doesn’t have to be just about profits and making money - it can meet other needs as well. 

How you run and approach your business is a reflection of who you are – it reflects your values and your priorities, and mirrors what you stand for in your life.

And on this theme of values, this post features an interview with a remarkable young entrepreneur making his mark in the billion dollar surf-wear industry.

His name is Cameron Greenwood, and his motivation in business is to have a positive influence on the world and to inspire young people to follow their passion and dreams. And quite frankly, my gut tells me that within the next few years you’ll be hearing a lot more about this 22 year-old young man and his small business based in Melbourne, Australia, called Monsta Surf.

Cam Greenwood - founder of Monsta Surf

He is building an enormous following in social media (approaching 30,000 Facebook followers), and in the space of just a couple of years is experiencing a solid, consistent rate of growth in sales around the globe for his range of surf-wear, surf-boards and accessories. Here’s what he had to say about his experience so far ….

• Cam, what was your motivation in starting your business – and what keeps you motivated now?

I had always been really interested in surfboard design and in 2012 I started making surfboards in a small storeroom in my backyard. In March 2012, I wanted to label my surfboards and thought of the name Monsta. My partner drew up the first Monsta logo and that’s how Monsta was born. On 7 June 2012 I created the Monsta Surfboards Facebook page. In the first year I was selling surfboards to my friends and through Facebook as well as starting to sell hats, hoodies and singlets.

I think I always had a dream to run a surf company but I didn’t really plan to grow Monsta to what it has become. It grew very quickly and I just went with it. In the first year Monsta had grown to 1000 likes on Facebook and it was then that I realized I had an opportunity to build Monsta into a business selling surfboards and clothing. A year later we had more than 15,000 followers

I saw that I had already created a solid following on Facebook and from this, was receiving a lot of interest in the brand and clothing. I believed I had the opportunity to grow Monsta into a successful business and I believed that it was feasible based on the interest around Melbourne and through leveraging the rapidly growing Facebook following. We  now have 25,000 active Facebook followers, with 30,000 projected by early next year.

I was driven by my passion to pursue my dream to create a surf brand that inspires people and was also influenced by the support from my close friends. After being part of a mission trip to the Huruma Children’s Home in Kenya in 2012, I set a goal to provide financial help with the education of these Kenyan children and wanted to achieve this through having my own business. A component of the annual profit of the business is now allocated to the Huruma Children’s Home through the Monsta Foundation.

Today, I am motivated by my passion to use Monsta as a platform to positively influence the world. I would love to bring cultural reform to the surf scene.

• You were studying business and commerce at university ....... How does that compare to what you’ve actually learned running your own small business?

Everything I have learnt through my commerce degree has been very helpful for the business but the lessons and skills I have learned from actually stepping out and running my own business have been priceless. All of the projects I have undertaken for Monsta have taught me new skills, given me new experiences, developed new capabilities, grown my resources and networks, and has constantly challenged myself and the brand to grow.

I have currently deferred my course to focus on Monsta this semester - but I do plan to go back and study part time next year to finish my degree.

• How have you approached marketing your business? ........ You have amassed quite a significant following on Facebook in a relatively short time, what is your approach to leveraging social media in your marketing?

The way that I approach social media is quite different to most brands. I build personal relationships with Monsta’s ‘tribe’ of followers who take ownership of the brand and spread the word. Most brands use social media with selling being their inherent interest. Basically I use our social media outlets as a platform to share a unique view of the world.

Over time, I have learned to focus on what makes a great, provocative and engaging image while aligning images with the interests of our target customer. I’m very proud of the strong presence Monsta has on social media and we really do have a ‘tribe’ like following with advocates from all around the world.

• What advice would you offer to young entrepreneurs?

I’m passionate about doing what you love and having a red hot crack. I think it’s great for young people to follow their dreams and to not settle for a lifestyle that does not fulfil them. There will always be many challenges and there is lots of things that I wish someone had told me before I launched Monsta. So here are ten tips for the young entrepreneur who is about to enter the battle field:

-     Do what you love: Don’t start a business simply because it seems like a great business idea, do it because you aren’t passionate about it and its what you love. Business built around your passions and strengths will have a greater chance of succeeding. Yes, creating a profitable business is very important, but its just as important that your work is fulfilling. Think about it, you spend most of your life working, so you may as well love what you do!

-     Lead with character: Do what is right because it’s the right thing to do, regardless of the cost to you or your business.

-     Focus on your niche: One of the most important factors in building a successful business is the ability to stand out from the many competitors in your field. One of the best ways to do this is by focusing and catering to a specific niche. Being more specific will help you stand out as well as attracting and marketing to the right audience which will save a heap of time and money. Juggling multiple projects or ideas will limit your productivity and effectiveness. When starting out, do one thing perfectly, not lots of different things poorly.

-     Take calculated risks: The best part of being a young entrepreneur is that you are young and aren’t responsible for much. This is the time to take risks, but make sure you have done your homework before you spend last years wage on your new venture. If you don’t calculate, your business will eventually fail. Projections, strategy options and plans must be in place to avoid making a wild decision.

-     Know your limits: No one can do everything, so don’t try to be a one man show. Surround yourself with mentors and advisors who will help you become a better leader and business person.

-     Stay lean: Scale down pricey plans and large expenditures when starting out. It is very tough to borrow money and it is quite stressful having a big liability so if you need large sums of money to launch your venture, go back to the drawing board. Simplify your business ideas to start small and then refine your concepts as you go.

-     Take advantage of social media: Social media is one of the most useful tools for advertising your venture. Not only can you build up online relationships with your customers but it is also very cost effective and a measurable way of advertising.

-     Keep innovating: even if you think your business or product is perfect, there will always be room to improve. Once your product is out there, you must continue to improve, expand and develop what you’ve created. This is how you remain competitive.



-     Treat people with respect: Success is defined by who you are and how you treat the people around you ...... In particular I think, how you treat the people that you don't need anything from and the compassion that you show, when no-one's watching. For me, that speaks louder than the car you drive or the clothes you wear or the balance of your bank account.

-     Stay healthy: As lame as it sounds, you will be much more productive if you take good care of yourself. Entrepreneurship and start ups are not a 9-5 job, they are a lifestyle and once you become passionate about your venture it will be with you until all hours of the night. I remember having nights where I would be working on a new idea until the sun came up but trust me, you will burn out and make yourself less productive in the long run. Eat right, exercise and prioritise your time for your loved ones and yourself.

Finally, what are your future aspirations for the business?

I believe that God has blessed me with Monsta in order to use it as a platform to positively influence the world. I have lots of dreams and ideas tucked away and I am hoping that one day our foundation can raise enough money to take the kids of the Huruma Childrens Home surfing down the coast of Kenya!

Ultimately, I want the brand’s legacy to be reflected in the lives it influences and I am super excited to see what the future holds.

Thank you to Cam Greenwood …… I’m confident that this young purposeful man will achieve his goals – and that his story will be an inspiration to other young people who want to make a difference. And by the way, you might be interested in this article "Are You Playing To Your Strengths"  and if you're looking for some tips on starting your own business "How to become an entrepreneur"

About the interviewer
Brian Carroll is the founder of Performance Development, a training business in Melbourne, Australia.  He is an experienced management coach with a passion for helping people achieve their goals in life and business. You can find out more about Brian at his Google + profile

To be successful in your business, know when to walk away

Winners know when to quit

If you run a business or have been thinking of starting your own small business, you've probably heard a lot about the importance of persistence and tenacity, and never giving up.

You may have taken to heart the motto "Winners never quit and quitters never win" ....... Well, get ready for a jolt, because Seth Godin says that's all NONSENSE !

Persistence can sometimes be wasted energy

Who's Seth Godin, some of you will ask? ..... Seth Godin is the founder of the online mega-successful business, Squidoo. He is a best selling author of numerous business books and he is a firm advocate of knowing when to walk away from a venture that is not proving to be a worthwhile investment of your time, money and effort.

In his book "The Dip - The secret to success is knowing when to quit and when to stick" Godin says that winners know when to quit, but they do it at the right time.

The Dip refers to the long road between setting yourself a goal and the journey involved with eventually succeeding in achieving it. Initially there is a sense of excitement, hope and optimism which has motivated you to try something new ....... but then along the way there will come the inevitable obstacles, pitfalls and barriers that you will encounter.

There can be pain, intense frustration and disappointment - and a considerable investment of energy and endurance is required to have any chance of finishing what you started. But if you can get to the other side of this pain, and get through this "dip", then you can emerge stronger, smarter and more capable.

Achieving your goal can bring tremendous feelings of satisfaction - as well as perhaps significant material rewards, depending upon the nature of the goal. The critical question to ask yourself is, will the goal be worth it? Is the pay-off you're going to receive worth what you will investing to get through the dip? Or is your time, energy and effort going to be better served by being directed towards a different venture?

Godin observes that there are some people who invest a lot of their time and effort in battling the hardships - only to give up just before they are about to emerge out of the dip. This is like a marathon runner who has run 20 miles only to quit with one lap to go - what a wasted effort!

The other thing Godin says you've got to watch out for, is what he calls the "cul de sac". He says if you get into a dip, at least if you push hard enough you stand a chance of getting out and things improve. But if you're in a cul-de-sac, then no matter how hard you push you stay where you - like a car spinning it's wheels, using up petrol but going nowhere.

So before you enter the dip, be sure the new goal that you're setting yourself in your business -  or the new project you're about to initiate, or the new product line you're looking at releasing - is worthy of pushing yourself hard and persevering through to the finish line. Otherwise it's simply going to be a drain on your energy and divert you from other initiatives that could prove much more productive.

It's just dumb to persevere with a no-win situation

So remember Godin's advice, winners recognise when to quit early - and when to go the distance.

Good generals know which battles to fight - and the battles to walk away from. As Kenny Rogers sang in the Gambler, "You've got to know when to hold  'em,  know when to fold 'em, know when to walk away - and know when to run". You should never allow the fear of a loss of face to prevent you from making the wise decision.

Don't be afraid to walk away from a no-win situation. Know when an investment is just not producing a satisfactory return - and don't be scared to sometimes simply cut your losses and quit.

By the way, if you decide to push through, you might like to get some tips on mental toughness

Here's a cute summary of the "The Dip" philosophy, explained by a six year old (with a bit of prompting from his dad)

About the author
Brian Carroll is the founder of Performance Development, a training business in Melbourne, Australia.  He is an experienced management coach with a passion for helping people achieve their goals in life and business. You can find out more about Brian at his Google + profile

Internet Marketing Tips for the Small Business Budget

If you run a small business, then I'd be willing to bet that you appreciate the potential power of the internet to drive growth in your business. Either that, or you're an ostrich sticking it's head in the ground .... which can't be true, because you're reading this post!

 

Savvy business owners recognise that one way or another, potential customers are either using search engines like Google to find a provider of their product or service - or are referring to their social media networks for guidance to help them with buying decisions.

 

I recently had the opportunity to connect with Jayne Day, who is a specialist in the field of internet marketing. Jayne is the founder and director of Webonize, an online marketing agency based in Newcastle, Australia.  Jayne teaches and consults with small business owners on how to get noticed online and attract more clients. I asked Jayne some questions about her experiences in running her own business - and also to share some tips on internet marketing ......

 

What motivated you to start your own business?

Webonize is my third business and my second business based online.  I like having the creative freedom and lifestyle that can be created from having your own business.  Webonize was founded due to the passion I have for assisting other small business owners with their online marketing strategies.

 

What do you find most frustrating or stressful about running your own business – and what are the rewards that have made it worthwhile?

Thankfully, I don't have many aspects of my business that I find stressful.  My major obstacle has been maintaining the high level of service that I aim to provide my clients while balancing the large amount of enquiries and clients that I am working with.  While I have a couple of people that work with me, I am very hands-on in the way I run my business because I like to do the majority of the work myself and all client consultation is with me. 

 

The rewards certainly out-weigh the challenges.  Although I do work long hours, I choose the times each day that I work and I regularly work late at night so that I can spend the afternoons with my children.  I have created the business so that it offers me the flexibility of being able to work around my family.

Jayne, you’ve consulted with many small business owners, advising them on their online marketing strategies – what are the common mistakes that you’ve seen?

Most small business owners that I consult with, don't have a strategy in place. They are just guessing as they go along.  Having a complete strategy in place will see much greater results for the time and effort. Everything you do online should be complementing each other - with the ultimate goal of driving more traffic to your website so as generate more sales.

Another common mistake is not being clear on your "ideal client".  Your ideal client profile should be very defined so that all your marketing messages are speaking directly to this particular market - in the language they speak and in the places they hang-out. If your messages are too broad, then you run the risk that you won't appeal to anyone.

What about SEO – what have you found are some of the things that SME’s typically overlook or simply don’t understand about how to achieve ranking success with their websites?

Keywords are the first, most misunderstood concept of SEO.  Keywords are the words that people type into search engines (eg. Google) to perform a particular search.  Most people guess what keywords they should be using and then try to rank for those keywords.  To be successful with your search engine optimisation, the keywords that you are targeting are the first and most important step in your SEO campaign.

Ensure these particular keywords appear in the Title tag of your page and also in the meta-Description for the page (you may need to ask your webmaster to make these changes). And also ensure that these keywords are woven naturally into the text and content of the page itself.

You want to make sure that you are targeting keywords that your ideal clients or customers are actually using when they enter in their searches.  There is no benefit at all in ranking on the first page of Google for a keyword phrase that no-one is using.  You want to be ranking for keywords that are actually going to bring in traffic to your website, and preferably traffic that will result in sales.  The sales might come straight away or they may come in the future.

The need for careful selection of the keywords you target applies as much to paid advertising as it does to ranking well for organic search performance. There may be some small business owners reading this who are as yet unsure of what I mean when I refer to paid results versus organic  performance

Let me explain this ....... An internet marketing strategy will often comprise some carefully selected paid advertising - which may include search engines and sometimes  Facebook (depending upon your target market)

For example, using Goodge Adwords pay-per-click online advertising means you might bid maybe $2.00 in order for your website to appear on the first page of Google search results for a particular search phrase. However, this amount is only paid if your ad (which contains a link to your website) is actually clicked. Whereas working on improving the organic (natural) search performance of your website means you pay nothing when your link is clicked on. The paid advertised results appear on the right side of the search results - and the organic (unpaid) on the left side of a computer screen. Premium advertising appears as "starred" results at the top of the page, which cost even more if they are clicked.

In addition to all of this, email marketing might also be considered as another component of your marketing strategy. You'd be surprised at the number of small business owners who are overlooking the potential treasures in their existing customer data-bases - and simply failing to leverage them when they initiate new promotions or are running a seasonal "sale". Mind you, there are still many small business owners who don't yet understand the importance of building a customer email data-base ..... and this is something we help them to do. 

For small business owners with limited time and equally limited budgets, what strategies and platforms would you recommend in building an online presence?

First of all, come up with a strategy.  Even if it is only very basic.  You need to know what you are doing and why you are doing it and how it is going to benefit  your business. This comes back once again to knowing your ideal client.  You want to know what is going to appeal to them and also where they are spending their time.  You don't want to be spending  a lot of time building a Twitter profile, for example, if your ideal clients don't even have a Twitter profile.

When first starting off, don't become overwhelmed with all the options.  Start small and gradually build on your strategy once you have one area or platform mastered.  So your first step might be Facebook marketing and once you have that flowing nicely, then move onto your next social media platform, which might be YouTube, Twitter, Pinterest or Instagram for example.  But keep it all in line with your overall strategy aimed at engaging with your particular target market. Same with anything you do with your blogs, guest posts, videos, webinars - it's wasted effort unless it's helping you to connect with your target market

Another thing to remember is, social media isn't going to give you instant sales.  Social media is used to make connections and build relationships with others. You build relationships by providing them with value and good quality content. Once you have gained some trust and credibility, then these relationships begin to be established - and then your sales will naturally follow.

I know that one of the areas that gives you satisfaction is helping women entering small business – do you feel that women face their own particular set of challenges in turning their visions into reality?

I certainly don't like to generalise, but I do find that many women struggle more with confidence and the fear of failure when starting their own business.  I love being able to help women find the confidence required to make their business successful.  

Any final tips on internet marketing for either the budding entrepreneur or the small business owner seeking to grow and expand?

While most online marketing strategies come free, or with a minimal cost, keep in mind that your time represents money.  Make sure that the time you are spending is giving you a worthwhile return on that investment. Otherwise, consider outsourcing this function, so that you can focus on playing to your strengths in your business.

You also don't want to invest too much time creating profiles on social media platforms that you don't own and ultimately don't have any control over.  Make sure you maintain a very strong focus on what you do own in the online space, and that is your own website.  Spend time creating quality content that is regularly published on your website, that your clients will find useful. Ensure the strategy you have in place will drive followers from social media back to your website - otherwise your social media time investment becomes mere "fluff"

 

Thanks to Jayne, for sharing some of her internet marketing experience with us.
 

Other related posts - SEO Tips for Small Business and also Getting Found by Google
 

Digital Marketing Trends ....... see what you think of this short video

About the author
Brian Carroll is the founder of Performance Development, a training business in Melbourne, Australia.  He is an experienced management coach with a passion for helping people achieve their goals in life and business. You can find out more about Brian at his Google + profile

Being Your Own Boss: Is running your own business right for you?

Do you have what it takes to run your own business?

Hey, let’s not kid ourselves here. Yes, there are many benefits and rewards to starting-up and running your own business – that’s for sure. But there are also risks and stresses.

On the plus side of the equation, there’s the freedom of having more control over your working hours. There’s the attraction of making more of your own decisions and in some ways, feeling that you’re more in control of your destiny. And when you’re running a business that you’re passionate about- well, it doesn't even seem like “work”. You’ll be paid for doing more of what you love.

BUT it can be a rough and rocky road that you travel with many pitfalls, especially during the first year or two. Some studies suggest that more than 40% of small businesses fail within three years - however those business owners who had prepared a well-researched business plan were more likely to succeed.

But will you simply end up another statistic? …… Quite apart from your business idea - you've got to ask yourself if you've got the "right stuff". Here’s a sample of essential qualities that are needed if you’re going to make a go of it as an entrepreneur ……

1.      A vision that you’re passionate about - a dream that lights a "fire in the belly", that excites and energises you. You need to have a picture in your own mind of what your business would look like in 3 years; including the types of customers that you would be doing business with

2.      You’ve got to be a self-starter ……. If you are someone who needs to be told what to do, then becoming self-employed is not for you! …… Nor is there going to be anyone to motivate you – this is again something that will have to come from within. However as long as your vision is something that arouses excitement within you, then keeping this “in line of sight” should keep you energised. But you’ll need and determination to get out and actually turn ideas into plans and actions. You can’t be someone who will wait for opportunity to come knocking at your door – you’ve got to get out and create opportunities by knocking on plenty of doors.

3.      The successful entrepreneur in small business is one who is not only inspired – but can inspire others with their enthusiasm and conviction. In the early start-up days of your business, you won’t yet have a proven track record in your industry or a portfolio of clients to showcase that will give you authority. Instead it will be more about your ability to sell and persuade others to give you the chance to prove to them that you can deliver what you promise …… Whether these other people are potential investors or potential customers – can you sell your ideas?

4.      A willingness to keep on learning is essential. Quite often the person setting up a business will have particular technical expertise ….For example, you might be a highly capable mechanic, or hairdresser or website designer or plumber or software engineer. However there will be other aspects to running a business that you have to be prepared to learn. Whether it’s financial management and record keeping – or maybe  it’s sales and marketing – or perhaps it’s software that enables the planning and scheduling of work operations ……. There will be additional skills and knowledge that must be acquired along the way. There will hopefully come a time in the future where your small business has achieved a level of success and revenue that will then enable you to choose whether to outsource some aspects of the business operations. But in the first year or two, typically the imperative is to minimise your operating expenses – so you will need to be willing to wear many different "hats".

Let me add that I have been running my own business for some 20+ years - so it has been a long time since I have reported to another “boss”. Truth be told, I’ve become so used to being my own boss and being in control of my business destiny (well, apart from factors like the GFC that sometimes will throw a grenade in even the best of business plans) that I would find it very difficult to return to working in a corporate role.

My customers are my bosses in a sense – but I do have the added luxury of choosing to refuse to do business with a customer if I find them unreasonable or unethical.

I’ve no regrets about starting up my own business. Of course there are things that I wish I’d have done differently – one of them being that I should have found an experienced business mentor much earlier than what I eventually did ….. Another lesson was continuing to do business with a customer for far too long, despite not being paid. Yes, you can extend your credit terms with them – but not indefinitely. There comes a time when if they’re not paying their bill, then you’ve got to “switch the power off”. Hoping they will eventually do the right thing will not pay your bills.

So if you’re still wondering whether small business is right for you, check inside yourself to determine whether you’ve got the necessary passion, the drive and the desire to learn. But just as importantly is that you confirm your idea possesses the required commercial viability

However, maybe you're feeling anxious about the prospect of losing some job security if you were to become self-employed - so I would say this to you …….. Consider in 20 years’ time, how deeply would you regret not taking the risk? Would you possibly look back and feel disappointed that you didn't have more faith in yourself?

This does not mean that you ignore any of the risks – but that you weigh them up against what you stand to gain. And consider whether some of the risk factors can be mitigated and managed through more careful business planning. Whatever you decide to do, I wish you happiness and fulfilment.  And in the words of David Gemmell ....
“May all your dreams but one come true – for what is life without a dream”

More tips and resources can be found at small business management  f

And finally, one last short video on the theme of Lean Start-Ups - which is based on the principle of getting your product to market as soon as it is "workable" rather than being obsessive and waiting for "perfection". ... Technically minded entrepreneurs often want to keep adding extra features to their initial product design - which create further delays to market release. The idea of a lean start-up is that you can incorporate customer feedback as an iterative and ongoing process of product improvement, after release. 

About the author
Brian Carroll is the founder of Performance Development, a training business in Melbourne, Australia.  He is an experienced management coach with a passion for helping people achieve their goals in life and business. You can find out more about Brian at his Google + profile

Small business tips for planning your start-up



How will you be different?

Are you in the process of planning to start-up a new small business? .... No doubt you've come across the idea of what marketers and advertisers term your "unique selling proposition".

In other words, in a crowded marketplace, what makes your service or product stand-out from the rest. Why should a customer choose you instead of other suppliers that are out there.

In the eyes of your customer, what will be the points of difference between yourself and your competition? ..... Will it be price factors, quality of materials,  free delivery, timeliness of supply, length of warranty, support and training, your affiliation with the local community?

But differentiation is only one of the essential factors to consider when planning your business start-up. And by the way, your point of difference will be something you need to regularly re-assess because once you succeed in establishing your business, chances are that it won't be long before one of your competitors identifies you as a threat and "copies" what you've been doing. So you need to stay agile and be ready to adapt to this over time.

For your business plan

Ian Harris is a partner  in B + I Lockwood Accountants, a business services firm in Melbourne, Australia. He's highly experienced in guiding small businesses through the start-up stage, so I asked Ian for some of his thoughts.

One of the resources that his firm favours to help entrepreneurs clarify their thinking when developing their business plan is "Business Model Canvas" ...... If your start-up business requires any type of funding or lending from a bank or investor, having a business plan is essential. And it also provides you with a basis for making decisions when you are faced with different options, as you navigate your way through the start-up stage. Here's a short video clip that explains their business plan template. Keep in mind there are many other business plan templates available that you can download ....... But a key thing is that it should be a simple document that remains "live and fresh", providing you with direction and is updated if market conditions or your aspirations change. Here's a short video that explains how to prepare the business plan on one page

Here's what Ian had to say in response to some questions about starting-up a business ......

1. As an accountant you’ve advised and observed many, many small businesses over the years. What are the qualities that tend to characterise the small business owner who succeeds? ....... And do you think there are people who are simply unsuited to being self-employed?

There is usually a particular sparkle in the eye of those who are successful. Those who succeed are driven, passionate and energetic. They literally don’t accept defeat. And they usually are very knowledgeable about the industry they are going into. They have done their market research - and typically have planned wisely and thoroughly.

There are definitely people who are unsuited to starting their own business and being self-employed. These people tend to have come out of jobs where they have been used to working structured 9.00 -5.00 hours and being told what to do. They have difficulty applying the intensity required to succeed. I would advise a person who is contemplating going into their own business to carefully evaluate their ability to motivate themselves and to work independently, without direction from others.

2. From your experience, why is it that many entrepreneurs when they start-up their business quite often under-estimate operating costs – and over estimate expected revenue?

Yes, this can happen - and it is quite often a causal factor in the high failure rate of start-ups. They have often under-estimated the time required to get the business to market and achieve traction. This creates the need to stretch their material and financial resources further than what they'd anticipated. They over –estimate expected revenue because their optimism and excitement about getting traction has not been tempered with sufficient depth in their market research. So I would advise budding entrepreneurs to err on the side of conservatism when preparing their sales and profit projections in their business plan.

3. What are the signs you look for in a business that indicate that it could be ready to grow and expand – and what are some keys to ensuring this is done in a sustainable way?

Strong cash flows. Sales are increasing. They are struggling to keep up with demand. There is stress associated with not being able to keep up.

The critical thing is to understand where the immediate constraining factor is and address it , and then the next one etc. Some people just employ more staff without having done a proper analysis of what the real constraint is. In other words, a more cost-effective solution might not necessarily always be hiring another employee but instead a change in some aspect of your process or systems or work scheduling that improves efficiency.

4. Cash flow problems can be a source of stress for small business owners – what advice can you offer around ideally preventing, but if necessary handling, cash flow difficulties?

Do cash flow projections for at least the next 6 months on a continual basis. Understand what you have to bill and collect each week to keep the doors open AND make sure efforts go into meeting this requirement. This awareness will provoke refinements and help to ensure that you focus your energy on the most critical things within your business.
Also, over time you should be able to recognise cycles or seasonal trends in your business  in terms of particular times when sales are weak and other periods when they are strong. So you need to think ahead, and ensure that you've "squirreled" away enough money from the "good" times to get your business through those relatively leaner periods, with sufficient reserves that will cover your operating expenses.

5. Ian, what should someone running a small business be looking for when selecting an accountant? ...... It can be a pretty important relationship, can’t it?

It can be critical. Most importantly the accountant needs to have some appreciation of what your business entails and what you are wanting to achieve in the long run. Too many accountants just focus on solving tax problems rather than understanding the business and ensuring that their client is focussing on the right issues. A good accountant becomes a trusted business advisor.

6. Any final pieces of advice that you can offer to the budding entrepreneur?

Make sure you understand your business model (we use the Business Model Canvas to help entrepreneurs define their business model). Make sure you understand what your "backs to the wall budget" is. ....That is they need to understand what sales you need to break-even and then to make a profit. You need to be very carefully monitoring the reality of your business each week (revenue against costs) when you start ..... and sweating when you fall behind. There's no point simply "hoping" that your business will improve.

Having an awareness of your real situation will provoke thought and if necessary, change. Whether such change requires making tough decisions around reducing your operating costs or adjusting your marketing and advertising strategies - the key is to take action when things aren't working. There's the old saying "If you don't change, nothing changes" There's no point putting your head in the sand when there are problems in the business - because they usually don't just go away themselves.

Thanks to Ian, for sharing his thoughts.

In the following video clip, some similar advice is offered - be careful when managing your cash flow when you first start-up, know your points of difference and keep on learning as a small business owner.

And one more short video with some tips  for planning your start-up

Related articles -
How to run a business;  Avoiding small business failure ; Why small businesses fail to grow

About the author
Brian Carroll is the founder of Performance Development, a training business in Melbourne, Australia.  He is an experienced management coach with a passion for helping people achieve their goals in life and business. You can find out more about Brian at his Google + profile