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Are you pursuing a viable and worthwhile endeavour?

Key Points

  • When establishing a business, foundational decisions can significantly impact tax efficiency, grant accessibility, capital funding and liability safeguarding.
  • Viability and value proposition of the business idea must be critically assessed, considering customer willingness to pay and the scale and sustainability of the market.
  • Start-up entrepreneurs should aim for agility and a deep connection with the entrepreneurial ecosystem, while being vigilant of both visible and hidden costs.
  • Business ownership demands skills beyond domain expertise, including demand creation, team building, and cash-flow management, which are essential for growth and sustainability.
  • Join Munro’s Business Academy for guidance on your entrepreneurial journey, and remember the importance of seeking professional advice early for a proactive approach to business challenges.

Presented by: Mike Beer

Transcript

When starting a business, you need to tick off the basics.

Some of your decisions may have profound long term implications. Especially with regards to:

  • Tax deductibility;
  • Tax minimisation;
  • Access to Government grants;
  • Capital raising; and
  • Liability protection.

Besides the tax and legal considerations, there is the most important factor:

Are you pursuing a viable and worthwhile endeavour?

Consider these situations:

  1. If you’re seeking to go down the disruptive and high-growth start-up path, you’ll want to be nimble, highly agile and connected to the start-up ecosystem.

    Very importantly, you’ll need to be highly critical of your business idea:

    • Are people really going to pay for your product?
    • Will they pay a high enough price to cover known and hidden costs (don’t under-appreciate the hidden costs)?
    • Is that market going to be big enough, and will you be able to defend your position?

  2. Are you just creating a be-your-own boss type of business?

    This is where you might be great at getting and doing the work, but the financial rewards are perhaps just slightly better than a wage or salary job (sometimes it ends up being worse).

    Is that worth the 24/7 business ownership stress and risks?

    What might you be able to do to make it worthwhile?

  3. Do you have the skills and passion to work ON-the-business, instead of IN-the-business ?

    A great many aspiring business owners are domain experts.

    They are exceptional at getting the work done to deliver the product to their customers.

    But, owning a business, especially one you hope to be worth millions one day, demands far greater management. You will need to build a team capable of:

    • Creating customer demand,
    • Winning that business,
    • Recruiting, training and retaining a team of exceptional people, and
    • Throughout, maintain ample cash-flow in order that your business survives.

    These things can be learned, but please be sure to give these challenges the respect they deserve.

We encourage you to join the Munro’s Business Academy to help you as you start your business journey, and please feel more that welcome to reach out for additional help when you’re ready.

If you’re ever in doubt about when’s the right time to seek professional help, please follow one of our key pieces of advice, which is to be proactive and ask early.