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19
Mar
Read MoreDo you really want to start a business?
When people go into business on their own, they are typically looking for some or all of the following things: Freedom The ability to make their own decisions Not having to answer to ‘the boss’ Building a business by design, from the ground up Taking holidays when they want Spending more time with their family Making more money
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08
Mar
Read More5 steps to find your unique selling points
Have you ever had those awkward moments when you are trying to explain what your business does and the most you get out of the other person is a dazed look?
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11
Oct
Read MoreDos and don’ts when merging or taking on a business partner
I believe I merged successfully in 2009 with my current business partner. At the same time, we saw another operation go through a similar merge, but their approach led to confusion, resentment and eventual break up. While every merger has its problems, we approached it with our eyes open, having scoped each other out for years. We also addressed issues before or as soon as they arose to minimise damage. We actually benefited from lessons learned but freely admit we made plenty of mistakes in the process. A merger is not an acquisition; it is a full consolidation of two previously separate small businesses. A true merger in the legal sense occurs is when both businesses dissolve and fold their assets and liabilities into a newly created third entity. This entails the creation of a new business. Dos Do take your time to get to know the other business owner(s), their personalities, and commitment for the future. Do your due diligence; checking to make certain there are no hidden pitfalls is essential. Professional help is advised, but here are the main areas that should be covered: 3 reviews of financials history of the business description of how the business operates details of any debt employee contracts and liabilities property leases, fixtures and fittings customer files any other documents which are pertinent to the smooth operation of the business Even though there aren't a lot of people who enjoy reading financial statements, it is essential to review them, as you will be taking on any liabilities or issues that pop up later. Do understand that the initial stage of a merger generally takes 3 to 9 months. Do accept that mergers can damage your own business performance because of time spent on the deal and a mood of uncertainty. Keep an eye on customer service, as it is far easier to retain an existing client than acquire new ones. Do realise the real work of making this merger successful has just begun when you sign the agreement. Do expect an initial lack of productivity and some teething problems with employees and workplace issues. Do provide a consistent message to staff from the top down to both sides simultaneously. Do have consistent accountability and compensation throughout the business for similar positions. Do develop new ways of organising the business to help bridge the different cultures through negotiation, and explore new best practice solutions. Do stay positive, and display confidence in the merger in front of clients and staff. Don’ts Don’t rush it, but also don’t let the process get too drawn out. Don’t be afraid to walk away. In the majority of cases, several meetings among the business owners and lawyers will be essential to figure out all the details. Don’t merge if the benefits are one-sided or if either side is going to be disgruntled. Address inequalities early in the negotiation. Don’t let third parties push you too hard to finalise the merger just to earn their fee. It is of critical importance that employees don’t learn about the merger from other sources—let them know early on, keep them updated and give them plenty of opportunity to ask questions. Don’t take it personally if some staff leave, as often a few people will leave after a merger. They may have been looking for a reason to go, and the merger was the trigger. See it as part of the merger process, and be prepared. Don’t expect productivity to rise immediately; in fact, expect it to drop off a little. Set short-term milestones to achieve. Don’t force staff to interact, but do plan a variety of different ways for the groups to get to know each other. Have I put you off the idea? Growth of any type usually isn't easy. Giving up full control can be hard, but with patience and persistence, the benefits to both parties are tremendous. Planning is essential; follow a defined plan. The process should be discussed, agreed and reviewed as it progresses. Have you got any war stories or tips for others? Please share them. Liam Shorte | Principal of NextGen Wealth Solutions
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05
Oct
Read More3 tips for choosing a name for your startup business
This is the part of setting up a business that I love! Giving your startup enterprise a name (and subsequently developing a logo) makes it all that more real, and therefore it can be an exciting exercise, if not a bit daunting and sometimes frustrating as well. Having gone through this process numerous times in my professional life, as well as worked with numerous startups—not necessarily in naming them, but working with what they had as a name (for better or worse), here are some thoughts I’ve had along the journey. (NOTE: these tips can also apply to the naming of a new product or service, or an event you’re running—essentially anything that will be a sub-brand of your overall business). 1. Make sure you can get the domain name. This will probably be the ultimate determinant as to which name you go for; you might have a brilliant name for your business, but if you can’t make it work from a web domain perspective, then you’re pretty much back to square one. Let’s face it, your website is probably your most important marketing tool today; if your domain is not congruent with your business name, forget it! This is why you see many online businesses make up words (Google, anyone?) or change the spelling of existing words (e.g. Flickr, Flippa) or join two words together (Airtasker, Facebook, MailChimp, PayPal, HubSpot, etc). If it’s the only way to get the .com, .com.au or .co.nz domain, then it’s worth considering. 2. Try to ensure there’s a story behind your name. What is the purpose behind your business, its reason for being? How and why did you come up with the name? I do some work with a startup called SplitIt.com.au—they’re a comparison and switching website, but unlike their competitors, rather than keep the commission they receive from service providers, SplitIt.com.au splits it 50/50 with their customers. Name says it all really! Take a leaf out of how marketing and PR people name their agencies. For example, Man Bites Dog is a personal favourite of mine—it’s a B2B PR firm from the UK and refers to a classic truism in PR and media circles, which is: If a dog bites a man, it’s not news, but if a man bites a dog, it is news! Nice one. Another fave is Threepipe Communications, which was inspired by one of the world’s most insightful and creative minds, Sherlock Holmes, who was quoted as saying: "It is quite a three pipe problem.” (As in, he needed to stop, think and smoke for 50 minutes to think about a particular problem.) Threepipe’s mantra is: “We see what others don’t see, leading to solutions others would never find.” I think in this age of social media, content marketing and online communications, this is definitely an area I would be focusing on. (I once named my consulting business ONE19 Communications after Geelong’s 119 point demolition of Port Adelaide in the AFL Grand Final! Nothing to do with the business, but hey, it was a great conversation-starter!) 3. The shorter and sharper, the better. We live in an information-overloaded world; the marketplace is crowded and noisy. A long and convoluted name won’t do you any favours. You need something that’s preferably short, sharp and memorable. Look at the big names, the two-syllable ‘monsters’—Apple, Nike, eBay, Virgin, Twitter, Intel, Starbucks—they were (mostly) relatively small companies once. Think small before thinking big! But ultimately, you need to like your business name because you’re gonna be stuck with it for potentially a long time! Good luck! Trevor Young | Consultant | Speaker/Trainer | Content Creator | Author - 'Micro Maven Manifesto'
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20
Sep
Read MoreDesigning an ergonomic home office
In a recent post on challenges in running a business from home, I included as one of the key challenges the risks of stress, ill health and strained relationships from working excessive hours. I realise now I could have added the risk of working in a home office space that has not been set up to be ergonomically helpful—in other words, with everything arranged so you can interact with that environment efficiently and safely. So what would that involve?
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06
Sep
Read MoreKnow your business personality!
No two businesses are the same – and success means different things for different people. But most business owners have in common, are the goals and aspirations that motivate them. And to reach those goals, it’s vital to know what’s really important to you in your business. A great place to to start is to define your ‘business personality’ – it’ll help you identify what you care about the most and how to get the best support from others. SME research specialists from the Cameron Research Group have identified three main business personality types.
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