3 Tips for Starting a Successful Business

If you’ve always wanted to start your own business, you should know that it takes a healthy degree of grit, patience and critical thought, but it’s not an impossible goal by any means. There are also services available such as bookkeeping and accounting services and business advisory services that can supercharge your business’ growth and productivity. This article will go over these as well as other tips you can use to start your own successful business.

Remember the Three Ps

One of the great things about starting a business is there are already a number of proven business models and ideas, but this is also simultaneously one of the greatest pitfalls during the inception stage of your business. You’ll need an efficient framework to help you filter out your mediocre business ideas from the truly great ones. This is where the ‘three Ps’ concept comes in, providing a quick way to validate your business ideas.

  • Passion – While no idea will ever get off the ground and become sustainable on passion alone, it’s still an important ingredient when it comes to starting any business. Ensure you’re working on something that you feel at least some intrinsic interest or passion towards.
  • Purpose – Your business doesn’t necessarily need to be the central anchor point of your entire being, however, it should serve some kind of wider purpose in the community or the world. This is because if things in your business get tough, you can easily remind yourself ‘why’ you’re doing what you’re doing, which can give you the boost you need to handle any adversity you may face
  • Profit – Passion and purpose are admirable things to base a business on, but unfortunately, they don’t pay the bills. You’ll also need to ensure that your business idea falls under a profitable niche or you’ve identified an idea or opportunity that will become profitable in the coming years.

Hire a Business Advisor

If you’re a first time business owner, you wouldn’t be blamed for feeling overwhelmed by all of the different hats you need to wear and the things you need to keep track of. Business advisory in Melbourne exists to give new and experienced owners the upper hand in their industry.

Business advisory is a combination of business coaching, mentoring and accounting advice in the form of risk analysis, cash flow forecasting and budgeting. Basically, a business advisor is someone you can depend on for advice and industry insights to help you keep your business profitable in the present and ensure you stay competitive well into the future.

 Don’t Become a Victim of the Sunk Cost Fallacy

Regardless of how much planning you’ve done or even if you’ve started to invest money into your business idea, don’t become a victim of the sunk cost fallacy. The sunk cost fallacy describes the tendency to follow through on an endeavour if you’ve already invested time, effort or money into it, whether or not the current costs outweigh the benefits.

Sometimes, even if you do everything right in your business planning, it may just not be what the market needs right now or your business idea could just become a casualty of bad luck. If you can see that your business is going to end up costing you more money than what it makes for you, having an adversely negative effect on your personal finances and lifestyle, save yourself the trouble and quit early on in the process.

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