Getting employed in a graduate program or an entry level job is not everyone’s idea of a good plan upon finishing university. Some students skip this whole stage in life and go right on too starting their own business. Although it might seem like the easy alternative to be the “Master; rather than the slave” and become self employed, its really not as easy as many think, it takes a great deal of hard work and self discipline to get a business going. Successful Entrepreneur and Angel investor Dunacan Bannatyne says that its not uncommon for founders of new businesses to work 14hrs a day for up-to 60 days straight!
Don’t let that scare you if you really want to do your own start-up. Here’s 7 great tips to help Graduates start their own business.
Research your idea and find out who is already providing the product or service you will provide. If there is no competitors, this could be either good or bad news. It could mean no one has thought of the idea yet or perhaps there was no real market to sell the goods or services!
Make a Plan
A very wise person once said “if you fail to plan you plan to fail”. According to the Australian Bureau of statistics more than 50% of new businesses fail within the first 4 years of operation with the primary reason being lack of planning. Having a detailed, well prepared and thought out business plan will give you a better chance of success and give confidence to investors, financiers and suppliers who could give you credit.
Funding your Start-up
The best way to fund a start-up is with your own money. Naturally as a graduate the likelihood of having a great deal of cash to start a business is not high, so you could find investors such as friends or family, perhaps and Angel investor? The other option is to finance through taking out credit.
Build your team
Getting the right support network around your business is critical. A good Accountant and/or solicitor can save you a small fortune in Tax and Advice. Find good reliable suppliers who can give you a good deal and wont leave you hanging when your running dry on stock.
Its a good idea to run your business from day one with a plan to sell it at some point in time. Keep everything well documented, get agreements in writing and have good relations with suppliers and customers. Put your business in the best possible position it could possibly be, so that in a few years you can transfer ownership more easily (and hopefully for a higher price!).