starting your own business: a presentation for university students in victoria, australia

© 2012 alanhowell.com.au Starting your own business 2012 1

Starting your own business

Alan Howell

Victoria University 2012

www.slideshare.com, search for “Alan Howell”


Being self-employed:

• 1969 - 1983 Designer & printer• 1979 - 1987 Bookbinder & conservator• 2005 - Business consultant, project

manager, trainer


8 things need to work:

• Something that you are passionate about• Customers• Financial plan• Legal plan• Communications plan• Marketing plan• Education + training plan• Wellness plan


Achieving self-actualisation is a strong driver for people who take up self-employment

Hierarchy of needs (Maslow 1954)

1. Decide the business


• Self-actualisation - becoming more and more what one is (Maslow 1954)

• Have something special to offer - something that you are passionate about

• What do dream about doing? Is it making a product or providing a service?

• Self-employment can be a good ‘fit’ for people that are risk tolerant, positive and creative/entrepreneurial

2. Customers


Kluber-ross change curve

shock

denial

anger

worry

action

acceptance

relief

(changing behaviour)


• Your customers should know that you are the person to go to about …

• Get into as many networks as possible - join everything (clubs, societies, associations)

• Everyone that you know - and have known - should know that you are in business to supply your product or service

• Always say yes when someone asks you if you can do something

• Use the 4 ‘Cs’ of social marketing


3. Financial plan and skills

• Income lags behind expenditure. Income is ‘lumpy’; you need a plan to smooth out the lumps

• On average, self-employed earn 70% of equivalent employed persons. Are you comfortable with this?

• High admin. overhead (60%?): 1 quote in 5 accepted• Possible answer = diversification / portfolio career • Fees: what’s the ‘industry’ rate?, competitors $?• Business Victoria (www.business.vic.gov.au)• Never compete on price: customers are prepared to

pay for quality (something ‘special’)• Get a financial adviser + accountant (due diligence)


4. The basic‘legals’

• How to start a business (Business Victoria website)• (advice on business structures eg sole trader,

licensing, buying/leasing, franchising, insurance, etc)• GST: +$75K turnover ($150K not-for-profit) but can

voluntarily register, ATO website (www.ato.gov.au)• Registered Business Name: Consumer Affairs

Victoria, $85.50 (www.consumer.vic.gov.au)• Australian Business Number (ABN): Australian

Business Register (www.business.gov.au). Free.


5. Communicate

• Memorise the 10 second elevator conversation• Carry a notebook/pen or recorder at all times• Get your own domain name and email. MelbourneIT

$140 - 2 years (.com.au needs ABN)• Get a website. Hosting from $3 a month (JustHost).

Use WordPress (free) with paid theme• Use Facebook, LinkedIn, Twitter, etc professionally

(‘4Cs’ + content, content, content…)• Business cards (1st and last impression, use reverse)• Write and talk about what you do and your ideas


• You are the best recommendation for your product• Look the part

• Look the part …


Art student

1963 - 1969

1966


1975


1983


1986


6. Market(ing)

• This is about knowing your target• Every market is changing: market intelligence leads

to new opportunities• Use your contacts, groups, industry association, local

business group, state government websites, libraries, newspapers, internet, etc

• Who are your competitors? Get to know them• Talk to the market influencers, ask 3 questions: what

are the critical issues?, what do I need to do to get into this market?, who else should I talk to?


market influencers

everyone you know

referrals


7. Keep learning

• Cert. IV in Small Business Management BSB40407 (Skills Victoria website)

• Improve Excel skills (budgets, proposals). Know about names, pivot tables, vlookup, solver, macro language VBA. Short Courses Victoria website, CAE

• Improve bookkeeping skills, eg MYOB. Know about accounting to BAS level (local community centres)

• Improve knowledge about tax + allowable expenses• Skills and knowledge in area of specialisation• Keep learning …


8. Wellness plan

• All employment is stressful: the self-employed carry an extra level of risk as there’s no built-in downtime and if work slackens off you worry whether there’s going to be any more

• Wellness plan– list what you like to do to relax and its frequency– block out time to do this in your diary before

adding your work/study commitments– Don’t change this!


2004


Conclusion

• Everyone should experience self-employment during his or her career

• Probably the most challenging activity that you will ever do

• Incredibly rewarding• Can be stressful• Have a ‘Plan B’ (and ‘C’… ?)


Alan’s 10 essential business skills

• ‘mental modeling’ / narrating - story telling• writing (particularly executive summaries)• researching / studying• presenting• training• project managing• advanced excel / data visualising• business case writing• analysing risks• budgeting


Starting your own business

Alan Howell

Victoria University 2012

www.slideshare.com, search for “Alan Howell”

starting your own business: a presentation for university students in victoria, australia

Career

business structures

local business group

australian business

business number abn

market intelligence

market influencerseveryone

targetevery market

short courses victoria