The Small Business Dilemma – A New Zealand Perspective

The owners of small businesses have to cover many roles across their business and often with little support. They need help to achieve the success they seek, but in many cases they either don’t look for it, or they have trouble finding the right help at the right price.

Many of the advisors, banks, funders, and all those servicing small business have difficulty helping them. These businesses are fragmented, costly to engage with and most service providers can’t offer even the most basic support and make it financially viable.

So why does this matter?

Consider these figures from Statistics NZ. (The percentages are not dissimilar in other countries)

1. Of the 480,000 businesses in New Zealand around 425,000 have five or fewer employees – micro businesses
2. Approximately 325,000 have no employees.
3. Unfortunately micro business are 10 times more likely to fail than larger organisations.
4. The service and support available for business in New Zealand tends to be focused on larger organisations, exporters or businesses with high growth potential. Very few of the micros in New Zealand fit into these categories and simply do the best they can.

Business owners need to find the best support they can afford. New Zealand’s DIY attitude may often mean micro business battle on alone, hoping to sort things out but often slipping further into difficulties.

Owners need to think about the unique challenges of owning and running a small or micro business.

Succeeding in a micro business must start with recognition that business, family and personal lives connect in ways that don’t apply to bigger businesses. The challenges of small businesses are often unique, so looking for solutions that ‘the big guys might do’ often won’t work. Most micros start for lifestyle reasons. They are owned or operated by families or people in relationships (e.g husband and wife). The owners are typically juggling not only every aspect of the business but also the needs of the family “.

So if you believe this describes you consider a few things:

1. Accept that you have many roles to fill in your small business.
2. Accept that you can’t be good at all of them nor will you enjoy all of them.
3. Seek out help. It is out there and you may have to spend some money to get the help you need.
4. You can’t do it all. You will have limited time and money so you have to prioritise.
5. Be kind to yourself. Small business can be tough and if you don’t care for yourself you won’t be able to care for your business.

Personal Qualities Required To Be An Entrepreneur And Start Your Own Business

A lack of skill, ability and experience in certain business areas need not be a barrier to success and starting your own business. The personal qualities exerted by a small business owner overcoming deficiencies over and over again are vital and present in many entrepreneurs much more so that specific technical knowledge.

Not everyone is a master of all business attributes in fact very few are. Certainly being a master of all is a fantastic position but unrealistic while certain personal qualities are essential to fight the inevitable battles to come. Business battles the successful entrepreneur wins.

Businesses that have grown and become medium sized and bigger are not reliant on the business owner entirely. Employees are engaged with specialist skills and abilities to develop and grow the business. A sole trader just starting out has to settle for a comfortable living or have the ability to grow the business to the point where more specialist abilities can be added to the business.

Most small business owners who start a new business do so in an area where that small business owner has some knowledge, experience and skill. It is a natural progression having acquired the business knowledge and experience to use those abilities to build the business under self employment rules rather than earn profits for an employer.

The personal qualities a small business owner possesses are more likely to determine the level of success. Abilities such as hard work, determination, persistence, intuition, tolerance and aggression can be the bedrock of success. But the road to success is not all slam wham bang for the entrepreneur.

Small business owners invariably work longer and harder than employees. An employee works for wages and an adequate work performance is enough. A small business owner is more likely to be on the job at first light, miss the coffee and dinner break and twelve hours later announce he has to finish off for the day because he has to go home and do the business accounting books that he started on Sunday.

Determination and persistence go hand in glove with success. Every new business runs into problems at some time or reaches a stage where the business owner needs to be completely focused and stick with a strategy to make the plans work. Things go wrong from time to time; its normal, determination and persistence are valuable qualities to see through these times.

Aggression in forcing through a business plan may sometimes be the only viable option. Not physical violence but the heightened state of anxiety to push through the plan and make it work with controlled aggression and passion. On the other side of the coin there will be times when the small business owner has to exercise tolerance and just go with the flow.

Many small start up businesses go out of business within 2 to 3 years of starting a new business. A major cause is under capitalisation which basically means they run out of money. Liquidity is a major area of concern for every small business entrepreneur and a cautious approach to a new business can be of considerable value.

There is a strong tendency for a new business start up to borrow money and buy new equipment just to get started. Such businesses are taking a major risk the plans will work. Some plans do work but rarely it is a smooth path and a better option is to build the business and reinvest profits made.

A more cautious approach would be to start a new business without borrowing substantial funds because if the small business owner has the ability to make a success of the business and make money then they can usually do so without external funding and use the profits made to build the business in the future.

The sound reason for a small business or a start up business to borrow money is to already be showing a good financial performance. Use the extra funds to speed up future success while borrowing funds with no track record is a gamble and a gamble which fails only too often.

Obstacles You Need to Surpass on Your Online Home Business Journey

We all know the power and capabilities of Internet when it comes with money making. If not, you are far away left behind my friend. Making money online 5 to 10 years ago is entirely different today. Internet technology really moves very fast and we have to go along with this trend for us to become successful on this Industry.

The Internet presents a huge goldmine just simply waiting for the right person to come along and dig into it. However, there are some obstacles or bad news about online home business. You have to understand that it is not as easy as it sounds to set up and build successful online business. There are several obstacles or bad news that you need to pass through and below are some of them.

Time – You have to provide a profitable time for you to build your online business. Ensure that the time you spend is a profitable one for your business. Since you are aiming with online business, you have to be in front of your computer doing something that will help your business to grow. It is not necessary to spend more than eight hours in front of your computer. Two to three hours per day will do. As long as it is business related and again, it is a profitable time.

An example of profitable time is an hour per day trying to educate your self. It is not advisable to go to online business battle field without any battle suit and sword. Your education will serve as your weapon as you travel your online success. Read some free eBooks available online. Although, there are some cases that you need to cash out extra bucks for you to receive a good information or knowledge but rest assured that it is worth it.

Information Over Load – This is one of the common bad things about online business especially for beginners and I was on the same boat before. It seems that I want to try everything I read, heard and watched. I want to apply all the techniques that will help me to become successful online without realizing that some of the information available around the net will not work for me or for my business. It is advisable to look for a mentor who is honest enough to tell you what will work and will not work for you. Stay with a single procedure or steps and during your online journey, you will notice that you need to change or modify your strategy. You will learn everything when you are already doing the business.

Budget – Online business is not Get Rich Quick Schemes. Yes, I know that you already found several advertisements that say “Earn $1000 on your first day” or something like that. But believe me; it will take some time, effort and money for you to reach what you really desire. Actually, you need a budget just to educate your self for you to do the business in the right way and market it. You need money to gain additional skill set needed for your business and market it.

Skills – Since we are talking with online business, you really need to have same basic Internet skills. Yes, you read it right, just basic skills. As long as you now how to turn on/off your computer, move your mouse, read emails, navigate a website and etc, you will be fine. But you have to educate your self since Internet is really a fast environment. There’s no need to have a programming or web designing degree. Personally, I don’t have any experience when it comes with web designing and web publishing. I just learned it from a free eBook online. This is a good example of profitable time. Reading free eBooks on how to create a simple website during my free time.

When I was a beginner, I don’t have the skill set needed to run any online business. All I know is how to open/close my computer, surf the net, navigate a website using the mouse, check and read emails and other basic skills about computer. You now what I did? I search online for a free eBooks that can help me to market and run my online home business. I found several free eBooks that I still use until now. This includes an eBooks on how to create a wed site, eBooks that teach me on how to use specific video editing applications and many others. I keep on searching for additional information that I can use to boost or improve my skill sets. Eagerness to learn is my only weapon when I am just a newbie on this online home business battle field. Eagerness to learn serves us my sword to survive on this battle field.

There are still several bad things that you can still encounter as you travel your online journey. What I just provided above are some major bad news or problems. But let’s put it this way; do not consider them as bad things. Picture them in a positive way. Consider them as challenges and along the way, they will help you towards online success.

Once you manage the bad news or obstacle, you will surely experience the financial freedom! Every one of us wants financial freedom right? This is the main reason why you want to put up an online home business. If you set up your business the proper way and turn the bad news into positive one, I’m 100 percent certain that you can also achieve what they called financial freedom using the power of Internet.