{"id":44009,"date":"2023-10-20T15:32:46","date_gmt":"2023-10-20T15:32:46","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/five-reasons-to-start-up-in-2012-and-five-reasons-to-think-twice-page-2-of-2-startupsmart\/"},"modified":"2023-10-20T15:32:46","modified_gmt":"2023-10-20T15:32:46","slug":"five-reasons-to-start-up-in-2012-and-five-reasons-to-think-twice-page-2-of-2-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/five-reasons-to-start-up-in-2012-and-five-reasons-to-think-twice-page-2-of-2-startupsmart\/","title":{"rendered":"Five reasons to start-up in 2012 \u2013 and five reasons to think twice – Page 2 of 2 – StartupSmart"},"content":{"rendered":"

Five reasons to stop and think<\/h2>\n

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1. The economic picture is looking a little shaky<\/h3>\n

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Unless you have been living under a rock for the past year, you will have noticed the odd rumbling of disquiet from Europe \u2013 riots, soaring unemployment, crippling debt, that kind of thing.<\/p>\n

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What does this mean for your start-up? Well, if you believe Treasurer Wayne Swan, or his predecessor Peter Costello, the debt crisis could have a very real impact upon Australian businesses this year.<\/p>\n

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Your ability to access credit, as well as valuable export markets, could be badly hit if the situation escalates. And with the domestic unemployment rate creeping to 5.2% at the last count<\/a>, it\u2019s clear that Australia, for all its advantages, isn\u2019t completely sheltered.<\/p>\n

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So, if you\u2019re planning an expensive foray into overseas markets this year, tread carefully. It ain\u2019t pretty out there.<\/p>\n

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2. Several industries seem stuck in a rut<\/h3>\n

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Much is made of Australia\u2019s \u201ctwo speed\u201d economy, but the reality is that there are several non-mining industries that are plodding along while others are wheezing on the floor.<\/p>\n

 <\/p>\n

The large retailers may have been slow to catch on that people actually like to buy things online, but it\u2019s clear that the industry is suffering from patchy sales<\/a>.<\/p>\n

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Meanwhile, the tourism sector has cried out<\/a> for further government assistance, following a rather miserable 2011.<\/p>\n

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Drilling down further, if you are thinking of starting up as a florist or getting into the paper manufacturing game, you probably should take a look at this recent IBISWorld analysis<\/a>.<\/p>\n

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As always, entrepreneurs that spot new opportunities in flagging industries can still succeed, but it is worth pondering which way the economic winds are blowing.<\/p>\n

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3. Who actually needs your business?<\/h3>\n

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Sir Richard Branson famously once said: \u201cI never get the accountants in before I start up a business.\u201d<\/p>\n

 <\/p>\n

\u201cIt’s done on gut feeling, especially if I can see that they are taking the mickey out of the consumer.\u201d<\/p>\n

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Trusting your entrepreneurial instincts is important. Alas, we aren\u2019t all in the same league as Sir Richard.<\/p>\n

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Many start-ups device interesting products or services and, with the tools to do so now more accessible than ever, plenty of innovators will be tinkering away to great effect in 2012.<\/p>\n

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However, the crucial question isn\u2019t whether you like your business, but whether your customer does.<\/p>\n

 <\/p>\n

Or, more specifically, does your customer needs<\/i> it? If you can\u2019t properly identify why a customer desperately needs to pay their hard earned money for your offering, then you have a nice idea, not a nice business.<\/p>\n

 <\/p>\n

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4. Stuttering cashflow<\/h3>\n

 <\/p>\n

With consumers stuck in \u201csave\u201d rather than \u201csend\u201d mode and retailers piling on the discounts, even prior to Christmas<\/a>, many businesses will be facing bumpy cashflow this year.<\/p>\n

 <\/p>\n

Modern consumers are savvy with their money \u2013 it\u2019s not so much about price but value. If your business offers them something of use at a price they can justify, they will part with their cash.<\/p>\n

 <\/p>\n

If not, you will be hard pressed to turn a consistent profit. Cashflow problems will plague your start-up, especially if you don\u2019t properly forecast seasonal dips.<\/p>\n

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5. It\u2019s all a bit too hard<\/h3>\n

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Starting a business isn\u2019t for the faint-hearted. It will require long hours, little sleep and ramped-up stress levels.<\/p>\n

 <\/p>\n

You won\u2019t have a guaranteed income, especially in the early stages, and you have to be across every detail, from tax to employment law to competitive threats, just to ensure you keep your head above water.<\/p>\n

 <\/p>\n

Many people find it all too hard. Will you?<\/p>\n","protected":false},"excerpt":{"rendered":"

Five reasons to stop and think   1. The economic picture is looking a little shaky     Unless you<\/p>\n","protected":false},"author":1,"featured_media":59484,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14,3,4,6,1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/44009"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=44009"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/44009\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/59484"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=44009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=44009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=44009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}