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Introduction

Every once in a while, I work as a mentor for start-up businesses. I find it fascinating to sit in a room with half a dozen people, and listen to the hopes, dreams and business ideas of each person. Many people are planning to start businesses that others have done before, such as opening a hairdressing salon or a lawn mowing business; other people have ideas that are new in some way, such as a business specialising in making homes safe for toddlers, or a start-up delivering mental wellbeing training to corporates.

I’ve realised that no matter what the idea, every new business benefits from strategic thinking. If you’re starting a business that others have done many times before, such as hairdressing or lawn mowing, strategic thinking helps define your point of difference and how you can set yourself apart from others. If your new business involves an entrepreneurial idea that nobody else has done before, strategic thinking is the key to safeguarding your business idea, and transforming creativity into practical action.

Despite the challenges of Australia’s rapidly changing business environments, with the pace picking up ever faster, I believe that most people are capable of running their own business. With the right software in place, you don’t need to be an accountant in order to understand your finances; with a decent product or service and an understanding of what makes you different, you don’t need to be a marketing guru in order to make a sale. Instead, all you need is some capital, a willingness to work hard and lots of straightforward advice. This book provides the straightforward advice bit — in bucketloads.

I find small business exciting. For me, being self-employed is about helping other people, having flexibility in my working life, and making a few dollars to boot. I hope you enjoy the journey too, and I wish you the very best of luck.

About This Book

Despite the branding, I don’t think you’re a ‘dummy’ — far from it. For me, For Dummies books are about a ‘can-do’ attitude. No matter how inexperienced you are, if you’re ready to give something a go, this book is here to help.

The whole For Dummies outlook helps me a great deal when I’m writing, reminding me to stay creative and think positive. I can be a little risk-averse at times, worrying more about profit margins and making enough to pay the mortgage, and sometimes, I need that push of encouragement to let my entrepreneurial side flourish. Hopefully, I find a balance between practicality and creativity throughout this book, and you can benefit from that, too.

This book (all 20 bite-sized chunks of it) is designed so you can pick it up at any point and just start reading. Perhaps you want to know about hiring your first employee (Chapter 13) but you’re not the least interested in legal structures (Chapter 7). That’s fine — just skip the first 12 chapters and start off from where you want to be.

One more thing. Throughout this book you’ll see sidebars — text that sits in a separate box with grey shading. Think of sidebars in the same way as you might do about designer brands: Nice to have, but not essential. Feel free to skip these bits.

Foolish Assumptions

When you work with small business, you learn to assume nothing. I see everything from clients who time all strategic decisions to fit with the stars (no kidding!) to multimillion-dollar enterprises that have grown out of nothing in a matter of months.

So, in this book I try to assume very little about you. You don’t need to know anything about bookkeeping, business planning, marketing or tax, and I try to explain all concepts in the simplest possible way. I focus on the kinds of things I reckon most small businesses are concerned about, combining positive advice about promoting your business and planning for success with practical guidance about the really tricky stuff — such as dealing with unhappy employees or digging yourself out of financial difficulties.

Icons Used in This Book

Want to be streets ahead of the competition? Look for this handy icon.

Get out your calculator and start doing those sums. This icon flags money stuff, highlighting vital information for anyone with an eye for making a dollar or two.

Tie a knot in your hankie, pin an eggtimer to your shirt but, whatever you do, don’t forget …

This icon flags tricky, slightly nerdy stuff that’s nice to have, but that you can probably live without!

This icon indicates handy advice or insights into how to improve your business or make life easier.

If you can’t learn from history, you’re doomed to repeat your mistakes. Real-life stories from businesses and people who’ve been there provide all the history lessons you could ever want.

A pitfall for the unwary. Read these warnings carefully (and then you can’t say no-one told you …).

Where to Go from Here

Small Business For Dummies is no classic work of literature (one day, I promise myself!), and so you don’t need to start reading from page one and plough through to the end. Instead, jump in and start reading from whatever section is most relevant to you:

 New to business? I suggest you read Chapters 1, 2 and 3 before doing much else. Chapter 1 asks if you’re ready to run your own business, Chapter 2 looks at how you’re going to stand out from the rest of the pack, and Chapter 3 looks at whether to start a business from scratch, buy an existing business, or go for a franchise.

 If you think you’re ready to start, Chapters 4 to 7 are about developing your entrepreneurial spirit — thinking about how big you want this business to be, what risks lie ahead, creating a business plan and choosing a legal structure that best fits your needs.

 Chapters 8 to 11 talk about planning for profit, covering everything from pricing your goods and services, building your first budget, checking the financial sense of your business idea and establishing your very first marketing plan.

 You don’t get anywhere in business without people skills so, in Chapters 12 to 14, I share lots of advice about developing an exceptional customer service ethos, and talk about being an employer (including knowing your legal obligations and understanding how to recruit good staff) and an effective manager.

 Need help with money? Chapters 15 to 18 delve into the nitty-gritty, looking at financing your business idea, bookkeeping systems, budgets and grotty subjects such as GST and income tax.

 Finally, my favourite part of any Dummies title: The Part of Tens. Chapter 19 offers ten tips for what to do if you hit hard times, and Chapter 20 provides a few handy pointers of what to do when you’re ready to move on and sell your business.

Thank you, dear reader, for taking the time to read Small Business For Dummies. I hope you find something along the way that helps you and your business to grow.