Sabiz Consulting

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SECTION 1 Start Up Planning

A business start up can be a complicated series of co-ordinated events that together, works to start your new business. One in three new businesses fail in the first year, so success is far from guaranteed. Your business start up is done using your money and your time, and these will become even more valuable as your start up moves through the phases, so don't waste either. I believe you should stay in very firm control of your start up, manage your business and your money and don't let your business manage you. This will allow you to put together a good, logical and well-structured plan. Be clear about what you want to achieve, how you will turn goals into reality, what possible speed bumps you might hit along the way and think ahead to the skills you are going to need to have the very best chance possible to start a successful, long term business.

Business planning for your start up is a vital part of your job as a new business owner. Know what you want to achieve then work backwards to figure out what pieces need to be put in place to get the desired result. Every new business owner is keen to get started and start printing business cards, building websites and designing marketing campaigns however, you will get the best results from taking your time, thinking things through objectively before acting and then doing all the steps in the most logical sequence. This is the best way to deliver a successful start up.

SECTION 2 Start Up Critical Tasks

Some of the critical things that you will need to do to get a high planning score are:

1. Understand clearly what you want your new business to achieve.

2. Understand exactly who will be doing each critical task within your business.

3. Know exactly when critical tasks and important activities need to be completed to keep on schedule.

4. Understand your personal attributes that you can use to increase your chances of starting a successful business.

5. Understand your weaker areas so you can be honest with yourself and get help from experienced or knowledgeable people when you need specialist advice.

6. Develop a clear strategy how you plan to find your customers and also how you expect to get them to become advocates of your business to find even more new customers.

7. Continuously review things as you go along. Find what is working for you and do it again! Conversely, if you have things that aren't working, ditch them without a second thought. Fight the urge to invest in activities that dont impact your bottom line. Measure - Assess - Improve - Measure - Assess again - Improve again. The cycle should never end.

SECTION 3 Start Up Planning Score

Your score suggests that you have a very long way to go to plan your new business start up. You are firmly established in the danger zone facing almost certain failure if you start up right now. Unless you have the most simple business model, no critical risks, established customers etc you will almost certainly be one of the two thirds of new business owners that will lose their money. However, you can still rectify the situation. You urgently need to consider what you want your new business to achieve and then work backwards to decide how to make it all happen. Not a lot of good things happen by chance, it is up to you to make positives happen. You need to do a lot of work if you want a strong, successful long term business that survives.

SECTION 3 Start Up Score

Your score suggests that you have a considerable way to go to plan your new business start up. You are still in the danger zone facing probable failure if you start up now. You urgently need to consider what you want your new business to achieve and then work backwards to understand what needs to be done to make your start up happen. Not a lot of good things happen by chance, it is up to you to do the work if you want a strong, successful long term business that will thrive in to the future.

SECTION 3 Start Up Score

Your score suggest you are approximately half way through the planning of your new business start up. That is a great start but remember, the higher your scores get, the more likely you are to actually be successful in the long term. You should consider what factors are keeping your score down to this level and what actions you can take to better increase your ultimate chance of success.

SECTION 3 Start Up Score

You are more than half way through your start up planning. You are in a great position now to consider if there are any business opportunities that you could still work on to further increase your chances of success or save you money and/or time during your start up. If there are opportunities to save money you would be wise to take them or you may decide its better use of your energy to concentrate on other areas of your start up planning.

SECTION 3 Start Up Score

You are in a great position now to consider if there are any business opportunities that you could still work on to further increase your chances of success or save you money during your start up. If there are opportunities to save money you would be wise to take them. It is now time to review your scores in the other start up categories and get them to this same stage. Very well done!

It is critical that you know exactly what you want your new business to achieve. If you can think through the top few business issues that matter to you and then focus on those targets.

One suggestion I would make to all new business owners is to think about how you would describe your new business to a complete stranger. I advise people to write this down in your own words, memorise it and be ready when anybody you meet asks you "what do you do?" You need to be crystal clear on everything you want your new business to do and who will do it. You need to include some words about your potential customers and stakeholders and what you are going to stand for. Two or three sentences maximum. Clear, concise and powerful words describing your business and what it will deliver for the benefit of customers. If you aren't clear, you will sound unsure and unprepared. and miss a great opportunity to promote your business with your family and friends. Family and friends can be brilliant marketing people for your new business with people they meet. This can result in an ever increasing circle of potential customers for you at virtually no cost. Everybody is always in a rush to get started, that's just human nature but try not to get caught in the trap, stay patient and prepare properly.

As you believe that you already have a very good handle on what you want your new business achieve and what it would stand for, you may already be well prepared. However, you may have miss an opportunity if you dont think about maybe a paragraph, that you could write down in your own words, memorise it and be ready when anybody you meet asks you "what do you do?" You could be articulate and crystal clear on everything you want your new business to do and who will do it. You could include some words about your potential customers and stakeholders and what you are going to stand for. Two or three sentences maximum. Clear, concise and powerful words describing your business and what it will deliver for the benefit of customers. Never miss an opportunity to promote your business with your family and friends. Family and friends can be brilliant marketing people for your new business with people they meet. This can result in an ever increasing circle of potential customers for you at virtually no cost. Everybody is always in a rush to get started, that's just human nature, but try not to get caught in the trap, stay patient and prepare properly.

Example of my business description

"I am the Director of "SABiz LLC" which is my own company that I started to help people, just like you, start a successful new business. I do this by providing an inexpensive, customized and easy-to-understand start up guides and plans. I want all new business owners to have the very best chance possible to start their own strong, profitable, long term business."

It is important that you also know who needs to be involved in your new business for it to be successful. Without having this clear in your mind, you may not have access to the right skills, advice and help that you will need on the journey. No individual person knows everything, we all need help at times. The levels of importance to your business will drive the urgency to obtain the appropriate skills at the exact right time.

You need, I would suggest as a priority, to decide and document what you need to do to get your business started and who is going to do what. That way you can easily see if and where you have gaps that must be closed and skills that you need to have access to. There is a worksheet (Start Up Worksheet #1) provided for just this purpose. You can download it after you complete the application.

Your scores suggest that you believe you have done considerable research on the business environment you will be operating in. Very well done! You could still consider though taking a critical look at your business research and double check you haven't missed anything. Remember, you always need to know as much as you can about your products and/or services. Who you think the customers are who will pay for them, where these customers will materialize from, what they will pay. What are your competitors doing now? What are they planning for the future? Why will your products and/or services be better than theirs? Who you have available to help you, how is it all going to fit together - these questions are all critical. Every bit of preparation could save you considerable money and time later on.

Your scores suggest that you have made some progress already on your start up planning. That is a very good start. To start a successful new business you need to totally understand the environment and market you will be working in. Maybe you could do some further research on the products/services you want to sell, what the market place currently looks like, who the current players are and what it may look like in the future.

To start a successful new business you need to research and understand the environment you will be working in. What is needed to be competitive in the market place? What opportunities exist for a new player? What gap will your products and/or services fill? Who will be your customers? Where will they come from and how will you make money? Who are your current and future competitors? These are just a few questions you should be able to answer. However, a number of these questions can be answered by what is going on in the market place right now and history. Do some further research on the products/services you want to sell, what the market place currently looks like and what it may look like in the future. If you don't get this right, your start up will almost certainly be in trouble. No point having the best product out there but no customers to buy it.

Knowledge and Experience

Your score suggests you have little or no knowledge or previous experience of your new business, its products and services, customers and the environment you intend to operate in. You have some considerable work to do to catch up here. Your competitors will already be well entrenched in your proposed markets and have their customers already buying from them. You may have to start from a zero base. You could think about where you could get specific industry knowledge to level up the playing field a little. You may want to work within your industry yourself and get some practical experience before you start your own business. Another way is to read books and publications or maybe even do a short course at a college or university. If all else fails, you could always hire specialist staff or an industry expert or consultant to advise you.

Your score suggests you have some knowledge and/or previous experience of your new business, its products and services, customers and the environment you intend to operate in. You still have some way to go though. Your competitors will already be well entrenched in your markets and have their customers locked in already. You will have to start from a lower base. You could catch up by seeking out some industry knowledge from people with experience. You may want to work somewhere within your industry and get some practical experience before you start your own business just to get a feel for the business. Another way is to read books and publications or maybe do a short course at a college or university. If all else fails, you could always hire specialist staff from within your industry or hire an industry expert or consultant to advise you.

Your score suggests you have fairly substantial knowledge of your new business, its products and services, customers and the environment you intend to operate in. This is a very good start but you still have some opportunities to further improve your chances of starting a successful business. You could think about where you can get more specific industry knowledge from experienced insiders. You may want to seek out or even hire someone from your industry before you start your own business. Another way is to read books and publications or maybe do a short course at a college or university. If all else fails, you could always hire consultants from your industry to advise you.

Your score suggests you have considerable knowledge of your new business, its products and services, customers and the environment you intend to operate in. Well done! This will hold you in very good stead as you progress through the early stages of your new business start up. If you could get all your scores up to this level, you could substantially increase your chances of starting a new business.

Your score suggests you have extensive knowledge of your new business, its products and services, your potential customers and the business environment you intend to operate in. You have a great score here. That's fantastic and you will more than likely reap the benefits as you move through your start up phases and prepare for your business launch. If all your scores reach this level, you will have given yourself every possible chance of starting a successful new business. Excellent.

Your Strengths

General management skills - your skills here will certainly help you establish and run your business efficiently into the future. They will also help you manage your time effectively, control your budget, make good decisions and manage your staff and other stakeholders. Very good.

Business planning skills - knowing how to develop a winning strategy, knowing how to put it together into a plan, implement that plan and monitor and respond to the outcomes as you go is a brilliant skill set to have. No doubt It will save you lots of stress, money and time as your start up progresses. Very good news indeed.

Financial planning skills - Knowing how and when to apply financial principles and knowledge to any business is an excellent qualification to have. Business isn't just about spreadsheets and bank accounts, you need to be smart and understand pricing, smart with stock management, smart with managing expenses and just smart all around when it comes to managing your business expenditure.

Remember, the main reason that so many new businesses fail is that they run out of money.

Plain and simple. Treat every dollar like its your last and don't waste money on things without a quantifiable return to your bottom line. You have a great asset here that is highly valued in the marketplace. Very good indeed.

People skills - Your ability to communicate and get along with people and establish relationships will go a long way towards achieving start up success. You will need to communicate with suppliers, bankers, regulators, government people, employees and most importantly customers. Some people think that constant chatter and self promotion is all you need but usually its much more important for new business owners to know when to listen. Knowing when to speak and ask insightful questions is also just as important. You will need to work with all sorts of people, from those who want to help you, to those that just want your money. Use your people skills whenever you can to continue to help yourself, your stakeholders and your business. Brilliant!

Sales/Marketing skills - All business skills are important but having sales and marketing skills will probably save you a substantial amount of time and money. The biggest marketer for your new business will be you, always you. Sales and marketing skills are sometimes underrated or thought of as the same thing. They are not as you would know. This is a great attribute to have, use it to your advantage whenever you can! Remember, customers are most likely to buy products and services from people they know, like and trust - make sure that's always you! Very good.

Your Business Weaknesses:

General management skills - Start up people need all around management skills to help establish and then continue to run a business. Gaining these skills could save you a lot of time and money. This is especially so if you know how you can set up your own accounts and financial systems, sort out your company registration, your taxes and abide by all government and statutory regulations. Otherwise you will end up paying someone else to do this for you. Thats going to be cash going straight out of your pocket. However there's a lot of resources available to help you learn. Read some books, download some articles, do some training, talk to people who have been in businesses before, find out what they did right and what challenges they faced, find out what they did that had the most impact on their success - this is always a good place to start.

Business planning skills - knowing how to develop a winning strategy, put together a plan, implement that plan and monitor and respond to the results the plan delivers, is a sought after talent. Some people see the benefits of planning and are good at it, others not so. Again, there are plenty of publications about business planning, I suggest you try a few and see if any of them strike a chord with you. Some people are planners naturally, others have to work at it. Again, there are always long or short courses that focus on business planning. You could research articles, the internet, reference books, business magazines etc - every little bit of knowledge will help you in the long run.

Financial planning skills - knowing how to develop and use financial principles is a must-have skill for any new business. It's not just about spreadsheets and bank accounts, you need to be smart with your pricing, with stock, with purchasing, with expenses and just smart all around when it comes to managing your money. There will be many people who will have plenty of ideas for your money so you have to be ready. Read some material, do an internet search on financial management for small businesses or take a course and you should get a number of great ideas. This area is business-critical.

Most new businesses fail because they run out of money, its that simple.

Make sure that's not you, treat every dollar like its your last and only spend money that you can see a meaningful return from. Remember, every time you are called on to spend your cash, ask yourself "does this spending have any direct benefits for my customers? My products and/service quality? Does this extra spending add more value to my business long term? Will this money directly improve my profitability? If you cant answer "YES" to at least 2 of these questions, you can probably find better things to spend your money on.

People skills - How well you communicate with people and establish long term relationships will go a long way towards achieving start up success. You will need to communicate with suppliers, bankers, regulators, government people, employees and most importantly customers. Some people think that constant chatter and self promotion is all you need but usually its much more important to listen. Knowing when to speak and ask insightful questions is also just as important.

You will need to work with all sorts of people. Those who want to help you and those that just want your money, and those who use up your time without ever being likely to buy anything from you. These are just some of the groups of people you will meet. Its important to be able to see through people early on and decide who is who as soon as possible. Wrong decisions on people and their motives towards you can cost you dearly. There are many publications out there about communication, logical decision making, teamwork and leadership to boost your existing skill set. Again, do your research and see which of these you think can benefit from the most in your new business.

Sales/Marketing skills - All business skills are important but if you have sales and marketing skills, it will probably save you a lot of time and money. Every business needs sales and marketing of some sort. Remember though that the most passionate marketer for your new business will be you. Sales and marketing are skills that are sometimes under-valued and people who start businesses without any sales or marketing expertise are really looking for trouble. Most new business owners need to understand how they intend to reach prospective customers. You have to find where your potential customers hang out before you can sell them anything. You also need to have a logical strategy to engage customers once you find them, what your message is going to be and also turn these customers into ongoing advocates of you and your business. Go out and find some marketing and customer publications and get an overview. If you still don't feel like you know enough, you can always hire in marketing consultants or experts to help you. Remember, most people buy products and services from people that they know, like and trust - make sure this is you!

Level of Risk Control

Your risk score range suggests that your new business has a very high, business-critical level of risk. Businesses with high risk levels like this don't usually survive but there are always some exceptions to the rule. In addition, there are things you can do to help yourself. For example, you could identify high risk areas and look for ways to simplify the processes and products involved to lower the risk. You could also consider doing a formal risk assessment and look at at your risks objectively and prepare accordingly. How likely is each risk to happen? What would be the likely results of each risk? Which risks are business critical? What sort of things could be put in place before these risks turn into threats? I do have a simple and free risk management instruction kit available for you if you would like to download it after you complete this report.

Your risk score is quite high and at a level that could threaten the viability of your new business. Businesses with high risk and complexity don't usually survive long term but there are things you can do to help yourself. For example, you could identify the high risk areas and look for ways to simplify the processes and products involved to lower the risk. You could also consider doing a formal risk assessment and look at at your risks objectively and prepare for them accordingly. How likely is each risk to happen? What would be the likely results of each risk? Which risks are business critical? What sort of things could be put in place before these risks turn into threats? I do have a simple risk management instruction kit available for you if you would like to download it after you complete this report.

Your score suggests you have an average level risk and complexity score. That is a very good start. You could always work to drive your business risk profile and complexity levels down further to increase your start up chances, but you need to decide what is cost effective for you and what isn't. If you do decide to do more work on your risk level, you could identify the high risk areas and look for ways to simplify the processes and products involved to lower the risk. You could also consider doing a formal risk assessment and look at at your risks objectively. How likely is each risk to happen? What would be the likely results of each risk? How much would it cost you if each threat emerges? Which risks are business critical? What sort of things could be put in place before these risks turn into threats? You could always consider a risk budget ready to minimise the impact the business critical threats. I do have a simple risk management instruction kit available for you if you would like to download it after you complete this report.

Your score suggests your new business has a very manageable risk profile. This is very good news indeed. However, you could always review your risks to make sure you haven't overlooked anything major. work to drive your business risk profile and complexity down further to increase your start up chances but you need to decide what is cost effective for you and what isn't. I do have a simple risk management instruction kit available for you if you would like to download it after you complete this report.

Your score suggests your new business has a very low risk profile. Even so, you could always work to drive your business risk numbers down further to increase your start up chances. However you need to decide if that is cost effective for you. If you do decide to take a more cautious approach, you could identify the higher risk areas and look at, and simplify your likely processes and products to lower your business risks even further. I do have a simple risk management instruction kit available for you if you would like to download it after you complete this report.

Your Products and/or Services

Your Products

You have indicated that you will be offering finished products to your customers.

You have indicated that the products you intend to sell have not been designed and built yet. Its one thing to try and start a successful new business from scratch but to design, build and market, brand new products, really adds to your start up workload and the degree of difficulty. Maybe there isn't a product like yours already because nobody has thought of it before or it could be that making this product would be too difficult, it might cost too much or it has no market. I would suggest you be very careful indeed if this sounds like you. Things can go very wrong very quickly. Designing a prototype is often a great way to test some new products but it can also turn into a very expensive venture if not done correctly.

if you will be seeking a patent to protect your products you could be in for a considerable amount of extra work and expense. The important thing though is to make sure you do things in the correct sequence. if you inadvertently provide drawings or descriptions of your products to a supplier or manufacturer, before your patent is granted, you risk your patent not being granted. You should seek legal advice very early from a patent expert and meticulously follow the professional advice and recommendations provided to protect products and/or your intellectual property.

You have also indicated that you believe there is something unique about what you are offering the market place. That is great. This is what marketing experts are always looking for. If you aren't different to other products already on sale, why would anyone want to buy your products? In a perfect world you would be offering products with superior quality, improved features or provided better performance for buyers. Every business can differentiate its product simply by lowering the price, however this isn't the way you would really want to go if you can avoid it. Ideally you can sell your product at a premium because of the points of difference with exisiting products already offered for sale.

You have also indicated that you believe there is nothing unique about what you will be offering the market place. Marketing experts are always looking for points of difference with new products upon which they can base their sales and marketing strategy. If you aren't different to other products already on sale, why would anyone buy your products? Is there any possibility that you can enhance or improve your products? Is there anything you can do to provide products with superior quality, improved features or deliver better performance or outcomes for buyers? If there is, you should seriously consider it.

Every business can differentiate its product simply by lowering the price, however this isn't the way you would really want to go. Ideally you can sell your product at a premium because of the positive points of difference with exisiting products already offered for sale.

Your Services

You have indicated that you will be offering mainly services to your customers.

You have also indicated that you believe there is something unique about the services you will be offering the market place. Marketing experts are always looking for unique. If your customers see your services as unique too that would be an excellent outcome.

You have also indicated that you believe there is nothing unique about the services you will be offering the market place. A point of difference in the services you offer are what marketing experts are always looking for. Otherwise your business is just another service provider competing for work. It will be a tough slog if you can't differentiate your services from your competitors somehow.

Your Customer Strategy

Getting and Keeping Customers

It is imperative in any new business to have a logical and effective customer strategy.

There are a number of key stages in this process including:

1. Identifying likely customers and where you might find them.

2. Attracting them to your products and/or services and getting them ready to buy.

3. Keeping customers connected to your company so that you get repeat business and turn customers into strong advocates for you, your business and your products and services to drum up even more future business.

If you have this in place, that is great news. Keep it up!

It is very important for any new business to have a logical and effective customer strategy.

There are a number of key stages in this process including:

1. Identifying likely customers and where you might find them.

2. Attracting them to your products and/or services and getting them ready to buy.

3. Keeping customers connected to your company so that you get repeat business and turn customers into strong advocates for you, your business and your products and services to drum up even more business.

Your business is not going to survive very long without customers, you need to rectify this ASAP.

Your Website

If you do go ahead and develop a website, getting customers from the internet can be very tricky and very costly and sometimes yield no results at all. It is common for business owners to think that a new website will immediately attract customers to a website and buy products and services. Unless you run a massive company with a substantial marketing budget, this rarely happens this way. Finding customers online is similar to finding customers through a traditional storefront. It takes a winning strategy, planning and a lot of hard work.

Local businesses can have their own strategies for getting customers and generally letting people know that your doors are open and you are ready for business. Local businesses can be supported substantially by local people therefore you could consider a number of different activities to reach customers. These activities include letter box drops, local signage, local promotions and ads or coverage in local newspapers and websites. Some of your very best marketing can come from family, friends and acquaintances. So its imperative that everyone you know is aware of your new business. You cannot underestimate the power of "word of mouth" when it comes to running a successful, local business.

All business owners can have their own strategies for getting customers and generally letting people know that your doors are open and you are ready for business. However, if you are taking over an exisiting business with established clientele, it can simplify things a lot. Customers can be very fickle and unpredictable. They don't always do what you think they will do. You will need to work hard to keep your customers. Remember, that some of your very best marketing can come from family, friends, neighbors and acquaintances. So its imperative that everyone you know is aware of your new business. You cannot underestimate the power of "word of mouth" when it comes to running a successful, new business in a local area.

A website can be simple and pretty cheap to get something out there. However, websites can get very technical and turn into very expensive money pits that provide little or no value. One of the main problems with websites is that you don't really know what you're going to get for your money until everything is designed and built. By then its too late. If you have no experience with websites please find someone who has been through this before and talk with them about what worked for them and what didn't. It is just so risky to go ahead without knowing exactly what you're getting into. One way that does work, is to find a site you like, write down and screen shot the parts you like, and use that design in your website build. Another alternative is to sell through an existing website provide by major sellers.

If you go ahead and use your website to link with customers and process transactions, be very careful! This is a tough area to get right and can be a constant expense with little or no return for your money. If you need to advertise online; remember that this too can be expensive and the systems are designed to favour big business and affiliated companies. You also have to totally understand terms like keywords, pay per click, quality scores, click through rates, search engine optimisation and conversions to name just a few. Do not underestimate the complexity or difficulty involved in online brand development. You may do well to consider hiring people who have real expertise and experience in this field.

If you go ahead and use your website to link up with customers and process transactions, be careful! This is a tough area to get right and can be a constant expense with little or no return for your money. If you need to advertise online; i.e.: Google Adwords or similar, remember that this too can be expensive and the systems are designed to favour big business and affiliated companies. You pay for all ad and word testing, errors, accidental visitors to your site, people who misunderstand your products or services and also those who are looking for free stuff or researching. The one thing these people all have in common is that they are all very unlikely to ever buy anything. You also have to totally understand terms like keywords, pay-per-click, quality scores, click through rates, search engine optimisation and conversions to name just a few. Do not underestimate the complexity or difficulty involved in pay-per-click advertising. You may do well to consider hiring people who have real expertise and experience in this field.

Your Start Up Success Score

Your start up success score suggests that you are firmly in the start up failure zone right now. You have so many gaps and opportunities to consider to bring your score closer to 30%. There are a large number of improvements you can do to further improve your chances. If you start up with this score, it is almost certain to end in failure.

Your start up success score suggests that you are in the vicinity of the start up failure zone right now. You have multiple gaps and opportunities to consider. There are a considerable number of improvements you can do to further improve your chances.

Your start up success score suggests that you are clear of the start up failure zone right now. However, that does not mean that you are guaranteed start up success. You still have some gaps and opportunities to action. There are a number of improvements you can do to further increase your score.

Your start up success score suggests that you are well clear of the start up failure zone right now. However, that does not mean that you are guaranteed start up success but you have given yourself every chance. Very well done! Remember though, you still have some gaps and opportunities to consider. There are still improvements you can do to further raise your scores, save money, get better value for your start up dollars and make more efficient use of your time.

Warning: You appear to have a business critical exposure in terms of finding, converting and managing customers. This needs to be addressed by improving your skills, or by hiring or accessing specialist skills. Professional customer management is vital for the success of your new business.

What Your Start Up Scores Mean

There are three (3) different scores that will be calculated from the information you have entered into this form. These scores are: Your Planning & Research Score, Your Knowledge & Experience Score and Your Risk Control Score. These are the values from the numbers you entered that are used to then calculate your overall chances of start up success.

Your Planning & Research Score (%)

Your Planning & Research Score (%)

You should be aiming for a Planning and Research Score higher than 60%.

Your Knowledge & Experience Score (%)

You should be aiming for a Knowledge and Experience Score higher than 60%

Your Risk Control Score (%)

You should be aiming for a Risk and Complexity Score higher than 50%.

Your New Business E Start Up Score (%)