MODERN START-UPS
you are really doing. No cost, just
the time to fill in a template off
the internet. Lack of polish will
not really matter as the audience
is you. It will clarify what you
are doing. Detail how much you
will need to fund your start up.
Allow set up costs, equipment, X
accommodation, working capital,
line of credit and online billing
system.
Step two: Plan ahead
If you are employed and
considering “starting up” use your
strengths as an employed person
with a regular income. Save as
much as you can from your salary.
These saving are your working
capital. Next you will need a line
of credit. Banks are most likely
not a real option if you were to
ask them for a business loan
for a high risk start up. But they
will rush to give an employed
person credit cards. Apply for as
many credit cards as possible
from the banks and other credit
organisations. You should be
able to get say four or five. Now
you have a line of credit. Next is
the online billing system, such as
Paypal.
Step three: Your office
In the era where we all have a
personal mobile device that
includes phone and email your
communications and office
are both linked and efficient.
Accommodation depends on the
type of work but if it requires
an office and a desk in a corner
of a room is fine for after-hours
back office work. Your business
hours office may require a more
sophisticated approach with inhouse catering and maybe WIFI.
Choose a neighbourhood coffee
shop that is not too busy to allow
you and a client or co-worker to
meet and have a slow coffee.
Naturally you will tell customers
that you prefer a relaxed business
approach hence a coffee in a
friendly environment.
with your new found friend who
is obliged to say yes to your great
ideas because they want the job.
You are now in business and must
establish an employer/employee
relationship to address the task
at hand. Present your simple job
description at the first interview.
You are now taking a compounded
risk by employing a stranger.
Never of course be silly enough to
employ a friend. Well, not one that
you wish to keep.
Step four: get a customer
This is the risky part. Assuming
that you can find a customer for
your great product or service
you now need to apply that
entrepreneur’s animal cunning.
These ideas are for the brave
who find themselves in the same
position as thousands before
them - high on ideas and but
very low in cash. Remember to
look after yourself because if
you follow these steps, you are
now in business competing with
others who may be one step
ahead of you.
You are now about to become a
cash flow wizard. To survive you
need more cash in than out. The
cash in is to be in quickly and
the cash out to be a thirty day
arrangement. The cash in is best
achieved by allowing payment on
the day with cash or credit card
via Paypal. Now that you are in
start-up mode it is vital that you
expand the usual sales process
to include prompt payment.
Negotiate as if your entire future
depends on it. That’s because it
does!
Step five: employ staff
This is a mine field for the
entrepreneur. The temptation is
to spend too much time selling
your great idea and then drift
into discussing the business plan
Alan Manly is an entrepreneur with
extensive experience owning and
managing SMEs. He is also the author
of When There Are Too Many Lawyers …
There Is No Justice ($24.95), visit www.
alanmanly.com.au
October 2016
ModernBusiness
65