As climate strikes continue to take place around the world, some small business owners are asking whether they can reduce their carbon footprint.

Climate change is being heralded as perhaps the most serious issue our generation faces, with many initiatives taking place around the world to raise awareness about its potential impacts.

Aside from being an issue discussed in government, homes and schools, climate change has moved to the top of the agenda for businesses as well.

In September, tens of thousands of businesses around the world (and many hundreds in Australia) participated in a climate strike, an event that was branded with the slogan ‘This is not business as usual’. The inference here is that business leaders can’t ignore how a climate change future might impact them.

If you’re one of the growing number of business leaders wondering what they can do to help address climate change through their operations, there are some simple first steps you can take.

ClimateClever: Helping people act on climate change

As society becomes more aware of climate change, it’s more important than ever for people to understand the impact their day-to-day activities may have on the environment.

There are many startups around the world that’ve been working tirelessly to develop technology-based solutions that help fight climate change, and one such business is ClimateClever.

Founded by Dr Vanessa Rauland in 2017, ClimateClever is an innovative software solution that allows people to calculate and track their carbon footprint, audit their buildings and create evidence-based (and achievable) action plans to reduce energy consumption levels.

Given her PhD in Low Carbon Cities (Philosophy) and her vast experience in helping people reduce the level of energy they consume, I spoke with Rauland to hear more about her ideas on the strategies that small business owners can use to play their part in addressing the negative effects climate change may pose.

Rauland’s advice takes shape as four simple steps. And it turns out following these steps can actually save your business money.

1. Measure your carbon footprint

The first thing Rauland highlighted the first challenge to be addressed when considering how to reduce a business’s carbon footprint, and that’s how to measure it.

“Knowing how to measure carbon consumption is one of the hardest things for businesses to do,” Rauland told The Pulse.

“Existing energy meters are not particularly transparent, and businesses don’t have a frame of reference as to what the energy consumption benchmark is supposed to be.

“You can’t set targets if you don’t have visibility.”

According to Rauland, another big part of the issue is that the accounts team of a business often develop the habit of paying energy bills without looking out for anomalies that may indicate where emission reductions might take place (and perhaps even save you money).

“If you aren’t looking at the numbers, you tend to miss big ticket items.”

But, if business owners can increase their efforts in measuring their carbon consumption, the ability to reduce their impact becomes much more realistic.

Rauland encouraged business owners to “start the conversation” by reaching out to colleagues from businesses of a similar size to their own and ask about their energy consumption and “compare numbers”.

“This will help businesses create that frame of reference about where they fit into the climate change story.

“Training the accounts staff to mindfully pay company energy and other utility bills and to flag large changes in energy consumption patterns to upper management can also create more of a climate-change-conscious environment at work.”

2. Start with the big-ticket items

Have you ever walked into the kitchen after you’ve hosted a dinner party at your house, looked at the huge pile of dishes, overflowing rubbish bags and dirty countertops, and felt too overwhelmed to know how or where to start the cleanup?

If so, you know exactly how many business owners feel about addressing climate change at work.

Between changing old, inefficient lightbulbs to LEDs, composting, recycling and keeping track of energy consumption across the entire business, not knowing where to start is a very common barrier between the business owner and the concept of reducing their carbon footprint.

In order to break down this barrier, Rauland encouraged business owners to go right back to basics and look to address the big-ticket items first.

“Big appliances like air conditioning systems and fridges are a great place to start, as they consume enormous amounts of energy.

“During the summer months, set the temperature on the air-conditioning system to 22-24 degrees and encourage people to dress for the weather.

“Workplaces that have their thermostats on 17-18 degrees don’t realise that they’re increasing their energy consumption by 10 percent with every degree.”

Similarly, you may find there are other large appliances needlessly chewing up your power bill and increasing your carbon footprint.

“As for fridges, try and use them efficiently by filling them up as much as possible before turning on a second one.

“Aside from being better for the environment, fridges work more effectively that way as well.”

3. Make sustainability part of your business culture

Being conscious of a company’s energy consumption levels can’t just be the passion of the business owner.

Rauland explained that if a small business owner truly wants to make a difference, they need understand that reducing their business’s carbon footprint has to be a group effort whereby everyone within the organisation has a role to play.

“Spread the roles across the entire company and encourage everybody takes part in reducing the organisation’s impact on the environment.

“Talk about it in meetings, send out emails about it, write climate change policies collaboratively and make everyone in the organisation part of the climate change conversation.

“The key is to bring everyone on board.”

4. Use your energy savings wisely

Aside from the direct benefits that being environment-conscious at work can bring to the global climate change issue, when businesses put effort into finding more efficient ways to consume energy, they can end up saving the business (a lot of) money.

As part of her advice to small businesses, Rauland recommended that business owners consider to donating part or all of their savings to a cause that their employees collectively decide on.

“It puts a deeper level of meaning and impact into the businesses climate change narrative.”

According to Rauland, allocating part of those savings to incentives that encourage staff to be conscious of climate change outside of the office as well is also a great way to add another dimension to a business’ efforts to reduce its impact.

“Taking the money saved from your overuse of electricity and giving it back to the employees in ways like paying for their train or bus tickets to work, can be a great way to offer a financial incentive to employees, while encouraging them to think more about their own personal carbon footprint outside of the office as well.”

Rauland’s advice indicates that just about any business can find ways to reduce their carbon footprint while also increasing efficiencies and save money.

Source : MYOB

Reproduced with the permission of MYOB. This article by Benjamin Kluwgant was originally published at https://www.myob.com/au/blog/reduce-small-businesss-carbon-footprint/

Important:
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author.

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page

When it comes to superannuation, most funds offer a range of investment options.

If there’s one thing certain in life it’s change. And generally your attitude towards saving and investing will change as you get older.

How your super is invested when starting your first job may not be the right approach when you’re approaching retirement. Luckily you can change your investment options at any time and this could make a real difference to how much money you have when you retire.

There are usually several different investment options to choose from. If you haven’t selected an investment option, you’re probably invested in your fund’s default option, which will generally take a balanced approach to risk and return.

To get up to speed on your super investment options, we’ve answered three common questions: how your money is invested, the different options available, and how your stage of life may influence your preferences.

What do super funds do with my money?

Typically, no less than 9.5% of your before-tax salary (if you’re eligible) is paid into super, which is then taxed at a maximum of 15%. Your super fund will invest this money over the course of your working life, so you can hopefully retire comfortably.

Your super fund will let you choose from a range of investment options and generally the main difference will be the level of risk you’re willing to take to potentially generate higher returns.

If you’re not sure what you’re invested in, contact your super fund. You may also be able to see your current investment option by logging into your super fund’s online portal – this may also give you a current balance and other information such as your projected super savings over a lifetime.

What are the super investment options I can choose from?

Most super funds let you choose from a range, or mix of investment options and asset classes. These might include ‘growth’, ‘balanced’, ‘conservative’ and ‘cash’ but the terms can differ across super funds. Here’s a small sample of the typical type of investment options1 available:

• Growth options aim for higher returns over the long term, however losses can also be notable when markets aren’t performing. They typically invest around 85% in shares or property.

• Balanced options don’t tend to perform as well as growth options over the long term, but the loss is also less when there are market downturns. They typically invest around 70% in shares or property, with the rest in fixed interest and cash.

• Conservative options generally aim to reduce the risk of market volatility and therefore may generate lower returns. They typically invest around 30% in shares and property, with the rest in fixed interest and cash.

• Cash options aim to generate stable returns to safeguard the money you’ve accumulated. They typically invest 100% in deposits with Australian deposit-taking institutions, such as banks, building societies and credit unions.

Super funds may have different allocations, so it’s important to read your super fund’s product disclosure statement before making any decisions. It could be a good idea to consider factors such as your current stage in life, and future plans and goals before choosing the super investment option that’s right for you.

What’s the right investment option for me?

Choosing the most suitable investment option generally comes down to your goals for retirement, your attitude to risk and the time you have available to invest.

If you’re young, you may have more time to ride out market highs and lows, and therefore be willing to take on more risk in the hope of achieving higher returns.

If you’re closer to being able to access your super, you may prefer a conservative approach as a share market crash could be harder to recover from than if you’re 20 years away from retirement.

While many people put off thinking about super, being informed and engaged from a young age and throughout your career may make a big difference to the returns generated and your final super balance.

Adam Spencer explains more about this in the video below.

What is a lifecycle investment strategy?

If you need further assistance, speak to us on Phone: 07 5641 4134 .

Source : AMP January 2020 

Important:
This information is provided by AMP Life Limited. It is general information only and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances and the relevant Product Disclosure Statement or Terms and Conditions, available by calling Phone: 07 5641 4134, before deciding what’s right for you.

All information in this article is subject to change without notice. Although the information is from sources considered reliable, AMP and our company do not guarantee that it is accurate or complete. You should not rely upon it and should seek professional advice before making any financial decision. Except where liability under any statute cannot be excluded, AMP and our company do not accept any liability for any resulting loss or damage of the reader or any other person.

If you struggle to stick to a healthy diet, don’t exercise regularly or can’t make time for peaceful moments of rest, chances are you need a holiday – and don’t we all! The thing is, we often jet off to exotic shores only to overindulge in junk food, a few too many sunset cocktails and late nights that add up to pure exhaustion on the plane ride home. 

And, there’s nothing wrong with that.

However, if you want to take a break that truly results in a rejuvenated mind, body and spirit, health and wellness holidays are the way to go. Best of all, some of the world’s most beautiful destinations offer an abundance of healthy living options and retreats that are guaranteed to produce that holiday glow, on a budget. 

Luang Prabang, Laos

The motto for life in Luang Prabang is ‘boh pen yang’, which basically translates to ‘no worries’. Here, each day starts with the sounds of chanting and temple drums before sunrise and Tak Bat. The morning alms ceremony sees lines of orange-robed monks wind through the UNESCO-listed streets, in a silent procession that supports the monks with food and the almsgivers with spiritual nourishment. 

With your spirit soothed, walk or cycle to the picturesque banks of the Nam Khan River for a class with Luang Prabang Yoga. Join a cooking class at Bamboo Tree to learn healthy tips, after selecting your own organic produce from the outdoor market. Because you’ll save money staying at charming guest houses for as little as $50 a night, splash out on revitalising spa treatments at Amantaka or Mekong Spa. 

Chiang Rai, Thailand

The ‘land of smiles’ is world-famous for a wealth of tropical retreats that are custom-made to guide guests back to peace, health and happiness. With yoga classes, detox programs, spa treatments and personalised healthy eating plans galore, it’s almost impossible to leave without feeling like a new person. 

Best of all, you don’t have to spend up big to get a slice of luxury with your health kick. Head to laidback Chiang Rai for cheap accommodation surrounded by temples and mountains, with plenty of budget-friendly, organic local produce to tempt your taste buds. Check out Museflower Retreat and Spa for wellness packages, treatments and workshops. 

Ubud, Bali

You can’t take two steps in Ubud without running into a yoga or massage studio – and that’s only a slight exaggeration. Bali’s spiritual and cultural centre offers everything you need for a health and wellness holiday, with a price tag that puts a smile on your face before you even sink into a massage. 

There are plenty of health retreats offering programs to de-stress, detox and revive. However, with daily walks in emerald rice fields, meals at restaurants serving chemical-free meat and organic produce, cheap-as-chips massages and a yoga class or three, it’s easy enough to design your own health and wellness holiday here. 

A little bit of balance between cocktail-sipping and healthy pursuits is all it takes to truly rejuvenate and reap all the rewards from your next break – including a happy holiday budget! 

Source: Clientcomm library 

Important note:
This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. 

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The lists of Australia’s wealthiest individuals and families published annually by different media organisations are generally an interesting read.

Ranking them by their net wealth, they show that many of the richest Australians have progressively become richer over time through a combination of business expansion, market forces and shrewd investment decisions.

In fact, looking at the aggregate data compiled over the last 20 years, the combined wealth of the top 200 wealthiest people has increased more than five-fold to over $300 billion.

Yet, the real story behind these rich list rankings only becomes apparent when one digs a little deeper and compares how individual fortunes have changed from year to year.

Total wealth gains have not been uniform. Some individuals and families have managed to increase their fortunes every year, without fail. But others, because of unfavourable market conditions, poor investment decisions or a combination of both, have suffered losses over the same time and slipped well down the overall rankings. Some have even fallen off the rich list entirely.

The power of cumulative returns

Had the latter cohort, who have slipped down or off the wealth rankings, simply adhered to a diversified managed investment strategy over the last 20 years, their net worth would have at least trebled.

To illustrate this point, we’ve compiled our own data showing the respective gross cumulative returns over 17 years from four different investment strategies based on an initial $10,000 investment back in 2002.

The reason we’ve picked 17 years is because this coincides with the inception of Vanguard’s four diversified LifeStrategy index funds, covering conservative, balanced, growth and high growth allocations.

By definition, our conservative diversified investment strategy is structured around a portfolio of different funds with a 70 per cent allocation to fixed income investments and 30 per cent to equities.

Our balanced strategy is split 50:50 between fixed income and equities funds, our growth strategy 70 per cent equities and 30 per cent fixed income, and our high growth strategy 90 per cent equities and 10 per cent fixed income.

The results are illustrated in the table below showing what a $10,000 investment made in December 2002 would have been worth at 30 September 2019 based on the respective cumulative investment returns from each strategy without any additional capital contributions.

* At 30 September 2019. ^ Gross annual return since inception.

Note that the above returns assume the reinvestment of all income distributions, and do not take into account any management cost rebates. Gross returns are calculated before allowing for management costs, but after transaction costs.

What the numbers show, however, is that even an investor who stuck with the conservative investment strategy all the way through since inception would be well ahead by now.

And keep in mind that the last 17 years includes the huge markets dip through the period of the Global Financial Crisis from late 2007 through to early 2009, and all the most recent volatility brought about by economic, geopolitical and trade concerns.

The benefits of regular contributions

The return numbers by value become even more compelling when regular capital contributions are added to the equation.

To do this we’ve used the compound interest calculator on the Australian Securities & Investment Commission’s MoneySmart website, using the same $10,000 initial deposit 17 years ago and the same gross annual return percentages. However, we’ve added in a regular deposit amount of $217 per month, which equates to $50 per week, compounded monthly.

The table below shows the total cumulative return value based on regular monthly deposits having been made since inception based on the same four diversified LifeStrategy index funds.

Again, the returns assume reinvestment of all income distributions and do not take into account any management cost rebates. The gross returns have been calculated before allowing for management costs, but are after transaction costs.

* At 30 September 2019, based on a $50 per week contribution. ^ Gross annual return since inception.

Regardless of the investment strategy chosen at the beginning of the period, investors with a modest regular contributions strategy would have increased their initial $10,000 holding more than ten-fold.

Inputting higher initial deposit numbers and higher regular deposits will obviously produce even more impressive long-term results.

Vanguard’s late founder John C. Bogle encapsulated all this so well when he stated: “Stay the course. No matter what happens, stick to your program. It’s the most important piece of investment wisdom I can give you.”

Source : Vanguard November 2019 

By Tony Kaye, Personal Finance Writer, Vanguard Australia.

Reproduced with permission of Vanguard Investments Australia Ltd

Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken yours and your clients’ circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our PDS or Prospectus online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.

© 2019 Vanguard Investments Australia Ltd. All rights reserved.

Important:
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author.

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page. 

Binding death benefit nominations in an SMSF can provide useful direction to the trustee of a fund after death, for distribution of benefits. However, over the past six months, we have noticed some common issues arising that need attention.

1. Issue: ‘Everything will be OK, my family will look after it.’

Many members of SMSFs make the incorrect assumption that just because it was all peace and harmony while they were alive, this will continue on their demise.

While most disputes are settled prior to getting to a court hearing, there are enough cases where the apparent intention of the deceased made clear during their life was never reduced to writing. The result is that unintended family members may end up with superannuation to the detriment of others.

Make sure that your intention to pay super benefits to particular family members is put in writing, as a binding direction to the trustee of the fund.

2. Issue: Not understanding who can make a claim or receive a superannuation death benefit.

The superannuation laws have strict rules around who can receive your death benefit. The law limits your superannuation death benefit to your dependants, plus it can be paid to your estate via your legal personal representative. Your dependants for super purposes include your spouse, children, anyone dependant on you for support and anyone with whom you have an interdependency relationship.
Make sure you are clear about who should receive your superannuation after your death.

3. Issue: Not understanding the place of superannuation in your last will and testament.

One misunderstanding is that your last will and testament can decide how your superannuation is to be distributed amongst your beneficiaries. This is incorrect, as the rules of your super fund initially determine how your super is to be distributed.

Your fund may allow you to make a binding death benefit nomination, which directs the trustee as to who is to receive your superannuation. This includes your dependants, and you can have your super paid your legal personal representative who is responsible to distribute the amount received as instructed in your will. If you don’t have a binding death benefit nomination, then the rules of the fund may allow the trustee discretion to distribute your super benefit to your dependants including to your estate via your legal personal representative.

Make sure you have a clear direction for the distribution of your superannuation otherwise payment may be up to the trustees of your fund after your death.

4. Issue: Incorrect binding death benefit nominations.

Many SMSFs have trust deeds which include standard binding death benefit nominations or require that the nominations follow a set format. If they do, then make sure any nomination that you sign is consistent with that nomination. You may find a standard nomination from the web to use or be provided with one from an accountant or adviser.

Make sure you use a nomination that satisfies the trust deed or distribution of your death benefit may be at the discretion of the fund trustees.

5. Issue: Incorrectly completed death benefit nominations.

We often see binding death benefit nominations that are incomplete or are incorrect. The information required to be included in the nomination will depend on the particular form, but it will usually include:

• the member’s name

• who the member nominates to receive the death benefit

• how much of the death benefit is to be paid to the dependant or legal personal representative

• any other instructions concerning payment of the death benefit

• the member’s signature and dated

• witnesses including the witness signature and dated

The binding death benefit nominations we see have one or more of these bits of information missing, which may render the nomination invalid or limit who may be eligible to receive the death benefit. If the nomination is considered invalid it may then rely on the fund trustee discretion for distribution of the death benefit.

Make sure your death benefit nomination has been completed correctly or it may be up to the trustee to decide how your death benefit will be distributed.

6. Issue: Not keeping the death benefit nomination up to date.

As things change during your life, you may wish to direct the payment of your superannuation to someone else. This may occur if you have children, change relationships or someone becomes dependent upon you for support.

Each time your family or relationship circumstances change review your death benefit nomination to see whether any change is required.

7. Issue: Failure to finalise a marriage breakdown.

Superannuation splitting usually is included as part of a marriage or relationship settlement. However, any binding death benefit nomination you have in place at the time of the settlement may still be valid and it is possible for benefits to be paid to your ex-partner.

As part of the settlement be sure to review your binding death benefit nomination and make any amendments necessary to take into account your changed circumstances.

8. Issue: Not addressing the legal competency of fund members.

Whether a trustee of an SMSF is competent to act in the interests of a deceased member is something that should be under consideration at all times. If the trustee is unable to act in that capacity, then who would take over the running of the fund?

To cater for this situation the trust deed of the fund or constitution of the corporate trustee should provide an alternative if the trustee or director of the corporate trustee become legally incompetent due to disability. Another option could be for the trustee to grant an enduring power of attorney to another person who could take over when they are unable to act.

Being prepared when a trustee is unable to act by using an ensuring power of attorney may allow an SMSF to continue in difficult times.

9. Issue: Not taking the specific makeup of an SMSF into consideration.

SMSFs operate in a unique way and may have investments which can be retained in the fund or transferred to the beneficiary as part of the payment of a death benefit. It is possible for a binding death benefit nomination to direct particular assets to one or more beneficiary.

Consideration needs to be taken of the fund’s assets in satisfaction of the payment of a death benefit. This may involve taxation issues, including income tax and stamp duty in relation to the transfer

10. Issue: Taking estate planning considerations into account.

Estate planning has become more important since the commencement of the transfer balance cap from 1 July 2017. The cap restricts the amount that can be used to start an income stream(s) in a superannuation fund, including death benefit pensions.

If a person becomes entitled to a reversionary or death benefit pension there is potential that their transfer balance cap of $1.6 million has been exceeded. This may require the transfer of part of the death benefit out of the fund as a lump sum. Depending on the wishes of the deceased it may be paid to a dependant or to their estate and have different tax consequences.

As part of deciding what is to happen with your death benefit the estate planning issues should be taken into account.

There’s a lot to think about…

It doesn’t matter whether you have an SMSF or belong to one of the larger super funds, the distribution of your death benefit should be made by the fund trustees as you want it. Any directions or instructions provided to the trustee must be clear and as required by the fund’s trust deed. Otherwise payment of your death benefit may be up to the trustee’s discretion and end up in the hands of someone you never intended.

By Graeme Colley
Executive Manager, SMSF Technical and Private Wealth – SuperConceptsSydney, Australia

Please contact us on Phone: 07 5641 4134 if you seek further assistance on this topic.

Source : AMP CAPITAL October  2019 

Important notes: While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455)  (AMP Capital) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.

When it comes to building our dream solo business, capital can be the one thing we can’t can’t always count on, but that doesn’t mean we can’t get started.

A friend recently told me the best part about having taken on some extra work at night was the way it was inspiring plans for her future business.

The two hours she spent on this project every week exposed her to an industry she’d always wanted to be part of. And while she couldn’t commit to spending more time on doing this project, and couldn’t afford to simply quit her day job and start her business idea, the investment in time was paying dividends for her future, because she was learning.

Research, learning and planning is absolutely key to the success of any business, Flying Solo founder Robert Gerrish told me recently.

“A good idea is not a viable business, it’s just a good idea. Most businesses fail because they haven’t been clear on their target market. No matter how good the product or service is in theory, they fall down when they haven’t spent time making sure there’s a market out there of potential customers who will actually buy it.”

“A good idea is not a viable business, it’s just a good idea”

With that in mind, Robert says there are six key things any budding soloist can start doing today, to set them on track for future business success, no matter how much money you’ve got in the bank.

1. Develop a pitch

Start by imagining you’re preparing to meet an investor (and in this case the investor happens to be you!) and slowly start putting together a pitch for your business. This takes the heat off you in terms of having to work out how you will afford to do everything, and will force you to get clear on the type of business you want to build and how to build it.

2. Make sure you can answer the following questions:

What’s the idea for your business? What challenges does the business address?

Why would anyone care that I start this business? Who does this business appeal to and what problem are you solving for them?

3. Talk to your prospective customer

This can’t be just family or friends because they will always tell you your business idea is great! Get specific about the market for your business, find ways to talk to those people and in doing so, find some proof that you’re selling they want to buy.

4. Acknowledge any gaps in your knowledge

If people were really honest with themselves they kind of know where their weaknesses are; we often don’t confront our weaknesses, because it’s a lot more fun to just to what we enjoy. My weakness was understanding finances, it never interested me and I would always push them away. Lucky my strength was marketing, so it made up for that. Start off by being clear about weaknesses and upskill.

5. Devote time every day for professional development (10 mins – 30 mins)

Listen to a business podcast, read a website, or visit a business just like the one you want to start and observe how things work. Whatever it is you choose to do to educate yourself, just make it consistent,  just 10-30 minutes a day for learning will help.

6. Find a buddy

Once you’re clear on the gaps in your skills and knowledge, hunt around for someone who is good at those aspects of the business. Post a note on the Flying Solo forums, ask around at networking events; simply by saying something like “I’m a great marketer but really terrible with finances. Is there anyone here that’s really great with money and a terrible marketer” You will be surprised at how readily people are willing to share their expertise.

Source : Flying Solo

This article by Lucy Kippist is reproduced with the permission of Flying Solo – Australia’s micro business community. Find out more and join over 100K others.

Important:
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Any information provided by the author detailed above is separate and external to our business and our Licensee. Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author.

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.