Surprisingly easy guide to starting your first business

Wondering how to find a business idea that will work? The first step is making sure the business idea has legs. You don't want to pour your heart and savings into the world's first gumboot vending machine only to find out nobody wants it. Although, come to think of it, that might actually work in some parts of the country... Here's what Sarah did when she was starting her mobile dog grooming business, 'Paw-fect Grooming':

Take a leaf out of Sarah's book:

• Bend your mates' ears about your idea. What do they reckon?
• Check out similar businesses. How can you do it better or differently?
• Give it a trial run. Maybe start small, like at a local market or doing a few jobs for friends.

Remember, your business idea doesn't have to be completely new or revolutionary. Many successful businesses thrive by improving upon existing concepts or finding unique niches within established markets.

Take the fitness industry, for example. Despite the abundance of gyms and fitness centres in New Zealand, new and specialised fitness businesses continue to emerge. From boutique HIIT studios to outdoor boot camps and online personal training services, entrepreneurs are finding ways to stand out by catering to specific preferences or addressing particular fitness needs.

The key to a good business idea is to identify a gap in the market or a way to do things better than what's currently available. It's about understanding your target audience and offering something that resonates with them – whether it's exceptional service, a unique atmosphere, or an innovative approach to solving their problems.

Your "special sauce" might be your expertise, customer service approach, or a twist on a familiar concept that makes it fresh and appealing. The goal is to create value that sets you apart from the competition.

Now, don't run away when I say "business plan." It's not as scary as it sounds. Think of it like a road trip plan — you need to know where you're going, how you're going to get there, and what snacks you need for the journey.

PRO TIP: Keep it simple! A few pages are plenty to start with. You can always add more details later when you're a big shot CEO.

Choosing the right business structure is a crucial early decision that can impact your taxes, liability, and growth potential. For most new entrepreneurs, there are three main options to consider:

Sole trader

This is you, doing business as yourself. It's the simplest way to start and a common choice for many new small businesses. You're the boss, you keep all the profits, but you're also responsible for any losses. This structure is often favoured by individuals offering personal services or starting small-scale operations.

Company

This is like creating a separate person for your business. It's a bit more complex and costly to set up, but it can protect your personal assets if things go pear-shaped. If you're planning something big or risky, or just want your business totally separate from your personal affairs this might be the way to go.

Partnership

Got a mate you want to start the business with? This could be your ticket. You share the load, the profits, and the bills. While trust is essential, it's crucial to protect everyone's interests with a solid partnership agreement. Consider getting separate lawyers for each partner to ensure fairness. A well-crafted agreement can prevent misunderstandings and potential conflicts down the road, saving you both money and stress in the long run.

For most small businesses just starting out, being a sole trader is the easiest option. You can always change later if you need to.

PRO TIP: Whatever you choose, set up a separate bank account for your business. It'll save you a massive headache come tax time.

Choosing a business name is like naming your first-born – you want to get it right! Here's how to choose a business name like a winner:

• Keep it short and sweet. "Bob's Burgers" rolls off the tongue better than "Robert's Gourmet Hamburger Emporium".
• Make it relevant. If you're a plumber, having "Plumbing" in your name helps. "Dave's Plumbing" tells people exactly what you do.
• Check if it's available. Use the Companies Office and trademark register website to see if someone's already nabbed your brilliant name idea.
• Think about your web address (domain name) early, even before you're ready for a website – it's a crucial step in establishing your online identity. Check if your business name is available as a .nz or .co.nz domain and register it promptly; you can use it for professional email immediately, and it ensures you're ready when you decide to build a website.
• Make sure it's not offensive or silly. You might think "Shit Hot Plumbing" is hilarious, but will your customers?

PRO TIP: Grab both the .nz and .co.nz versions of your domain name if you can. It's like insurance for your online identity.

When you're starting a business in New Zealand, there are a few legal and regulatory hoops you need to jump through. It's like the admin version of a Tough Mudder, but with less mud and more paperwork.

PRO TIP: The IRD and business.govt.nz websites have some great resources. They might not be as exciting as Netflix, but they're a lot more useful for this stuff.

Let's talk about the elephant in the room — money. Starting a business doesn't always mean breaking the bank. Take it from Mike, who started his food truck business on a shoestring:

Where you set up shop depends on what you're doing. If you're a tradie, your ute might be your office. If you're opening a café, you'll need an actual space. And if you're selling stuff online, you might just need a spare room at home. If you do need a physical location, here's what to think about:

• Can you afford the rent? Can you share a space with another business?
• Is it easy for customers to find and get to?
• Is there parking nearby?
• Are there other businesses around that might bring in customers?
• Is there room to grow if your business takes off?

PRO TIP for tradies: Consider renting a small storage unit for your tools and materials. It's often cheaper than a proper workshop and keeps your garage free for, you know, your car.

At first, your "team" might just be you and your dog. But as you grow, you might need to bring on some help. Here's what to consider:

Employees

They work for you regularly, and you're responsible for their wages, holiday pay, and all that jazz. Great for building a consistent team, but it comes with more admin and cost — and it does take some of your time and attention.

Contractors

These are people you hire for specific jobs or periods. It's more flexible, but you have less control over their availability.

Virtual assistants

For admin tasks, you might not need someone in person. A VA can help you a few hours a week from wherever they are.

Start small. Maybe get a part-timer or a contractor for busy periods before committing to full-time staff.  What about AI? Can some AI tools help you automate some repetitive tasks?

PRO TIP: Before you hire anyone, write down exactly what tasks you need help with. It'll help you figure out what kind of person you need.

You've got your business up and running – now you need customers! Here are some low-cost ways to spread the word:

1. Get a simple website. You don't need anything fancy. Just something that tells people who you are, what you do, and how to contact you.
2. Use social media. Set up a Facebook or Instagram page for your business. Post regularly and engage with your followers.
3. Network. Join local business groups. Chat to other business owners. You never know where your next customer might come from.
4. Ask for referrals. If a customer's happy with your work, ask them to tell their mates.
5. Get some business cards. Old school? Maybe. But they still work!

Remember, a balanced approach is key. Build your own online home with a website and use social media as a tool to drive traffic to it. Consistency in both is crucial for long-term success.

Now that you’ve learnt how to start up a business, you'll need to start thinking about growth. Remember, slow and steady wins the race. Here's how to approach it:

• Listen to your customers. What else do they need? Are there common requests or complaints?
• Keep an eye on your finances. Are you making a profit? If not, when do you expect to break even?
• Look for efficiencies. Could you save time or money by doing things differently?
• Consider new products or services. What else could you offer that fits with what you're already doing?
• Build relationships. Could partnering with other businesses help you reach new customers?

PRO TIP: Set aside time each month to review your business. Look at what's working, what's not, and what you could do better.