Published:
03/22/2013 10:52pm
What Not To Do When You Start a New Business
In the City of Sydney, we hear so much bad press about the shocking state of retail, how stores are closing down, don't go into retail as a start up, and so on and so on. You know what... I ignore most of the negative things I hear, as I think it is all rubbish. People say this, but at the end of the day if you want to grow or start a new business you just have to make sure you do it in the right way. I saw a perfect example today of how NOT to start a business.
The owner of a cafe not far from where I am in the City spent $1000s (and I mean $1000s) renovating a previous coffee shop into a Moroccan food place. The end result looked great.
The owner hired staff to run the place, it opened, and then the owner went back to his day job. I walked past the place daily and it seemed like it was doing OK. I turned up this morning, one month after it had opened and the doors were closed. The staff had turned round and told the owner they just didn't want to work there anymore.
I saw 3 big mistakes in this start up business:
1) The owner thought he could open the store, then get someone else to run it whilst and he stepped away, whilst reaping the rewards. Sorry, but that is not a winning formula for any start up business. You need to work and build a strong foundation in any new business before trying to step away. And not just for one month or two months, but for a few years.
2) The owner did not seem to have researched into what he was selling. A Moroccan food joint in the heart of the City in my opinion is a pretty risky option, since City folks would usually want quick, easy food that doesn't sit heavy on their stomachs at lunch time. So when you are opening a store do your research in the area. I love golf but it doesn't mean that I can start a golf business in the heart of a city. Research your location thoroughly and your potential customers.
3) Be thorough in the quality of staff you hire and consistently lead by example. Create procedures for staff and ensure that they are followed. Focus on building your client base, growing your business and supporting your staff. Lead the way!
The owner of that cafe is now potentially paying rent for several years with no one to run his business for him. Big problem! So when you are looking at starting a new business, don't be like this guy. Learn from his mistakes and you won't go wrong.
When you are thinking of starting a new business venture, you will be surrounded by a lot of negative people. It is just human nature to criticize others. It is easy to do so and some people actually just enjoy it as they don't have the guts to pursue their dreams and goals. Remember that being an entrepreneur is about taking risks and listening to your gut. It is definitely OK to start a business in this climate, but you have to be prepared to manage it, run it, live it and build that first foundation.
Make sure what you are selling is relevant to the customer market around you and most importantly, be clever as to where you spend your money.
If all entrepreneurs stopped taking risks and just listened to the negative media we'll never turn the economy around! Both Google and Apple began their businesses in the middle of a recession and they didn't do too badly did they?!
So follow your gut instinct about your new business idea. Do some research without over thinking it and be smart how you implement your ideas. Get some help and advice from someone who's already doing what you're planning to, so that you can avoid common costly mistakes.
Hiten Thakrar is the first person you'll see when visiting Sydney's Zantini Menswear shop. Best known as "H," he is passionate about providing quality menswear as well as exceptional service and advice regarding how to be the best dressed man you can be. Visit www.ZantiniMenswear.com to receive "How to Look Great and Save Cash With Your Business Clothing," along with tips, tricks and some great menswear fashions.
