self-employed in a small business

Perseption about being a business owner

  • The Real world

    It is a common belief that running a business is easy, with high income, tax benefit etc. Nothing could be more wrong.
    A self-employed would say they have more work as manager than an employee and earn less money than an employee when working hours are considered.
    But why are business owners not stopping being owners?
    It’s easy to say, “I don’t know”, but this is not a good answer.
    One of these three answers could be best reason:

    1. I’m happy. It is as I had anticipated it.
    2. I can’t get out without losing money.
    3. I don’t know why.

    If you are unemployed, bored in your job, not earning enough, not appreciated in your job and we can
    go-on and on, don’t used these types of arguments as  reason to be a business owner.
    You surely could be one of the owners in group 2 or 3.

    Go through the groundwork and scrutinise the cons and pro. You will then be fare better informed to make a correct decision about your dream.

"Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat."
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You share your dream about "having your own business" With approx. 2 mil. Small Businesses in Australia. you are not alone.

 

  • “Are you ready to start your new Business

    Too many small businesses have a life span of less than three years because of no real business plan with groundwork done. Groundwork  like:

    • Reason to be self-employed.
    • Changes to private life.
    • Type of business setup.
    • Product(s) or work type.
    • Cost accounting.
    • Competition and marketing.
    • Three years budget Forecast.
    • Projecting off expense types
    • Cash-Flow
    • Capital needs.
    • Business plan.

    are the nuts and bolts of any business and it is the best insurance policy for your dream.
    The groundwork is your goals quantified into some measurable realities and figures.
    As you operate your business and discrepancy between reality and planning appears, correction can be done in time to avoid loss of money or a crash.

    Success in your venture depends on who is running the business.

     

  • Cost accounting and gross profit.

    Cost-Accounting is, what a footing is for a house, the foundation for your new business, but too often neglected. They are like a footing for a house hidden underneath your sales price.

    You need to have an accurate cost control of all the product you sell, and lack of this is a major reason for small businesses’ crashes or lose of money.

    2 EXAMPLES
    An online business for animal medicine sold all their product with free mailing. The prices were in average $68 with a turnover of $2,000,000 which equals 29,400 unit sold. The free postage and packaging were not included in their cost accounting and with an estimated unit cost for postage at $4.00 they will lose more than $100,000 a year.

    In a car repair shop's invoices, you will notice the last item is called various. This is for small items which are too unpractical and cheap be counted. Here It's not the unit price there are significant but the volume. They have set a fixed amount to cover for these costs on each invoice.

    Gross profit or markup is the roof of any working business' revenue and sit on top of the costing. It is what you add to the cost price to get a sales price. Out of this profit you will have to pay for these general costs:

    • Administration
    • Rent/lease of workshop or office
    • Transport
    • Marketing
    • Your wages
    • Your partner’s wages if partner in the business
    • Professional help
    • Maintenance of tools etc.
    • Bank cost incl. Interest
    • Unknown cost

  • What should you do?

    Above you have the groundwork list which, shows you the fundamental things, which have to be scrutinise before you can start. It’s a time-consuming job and will in most cases be done by accountants.
    For many small businesses, it’s too costly to use professional help, as all money available are needed for stock, tools, working capital etc.
    This could be a major reason for the low survival rate.

    Elsibi offers FREE OFF CHARGE for small businesses its expertise to establish a business plan for them. At the same time, they will be informed about their option for survival in the cold business world.
    Our aim is to get more small businesses to survive the first three years.

To acceept our offer please click on the Icon

And you will be taken to our site

Make sure you run the business,
and not the business
that runs you.

The successful man is the one who finds out
what is the matter with his business
before his competitors do.
Roy L. Smith

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