Running your own business can be a rewarding experience. However, it can also mean exposure to new risks, long hours, hard work and frequent challenges. Before you start your business, it is important that you consider the reality, and the challenges, of running a business.

1. Confidential
Are you ready to start a business?
Dr. DJ Rhee
CEO of CVMP

2. Confidential
1) The reality of starting a business
2) The challenges of running a business
3) Skills for business success
4) Dealing with skills shortages
5) Personal goals chart
Are you ready to start a business?

3. Confidential
Are you ready to start a business?
1) Check the reality of starting a business
 Benefits of Starting and running a business
 You can be your own boss,
 achieve your dreams and
 enjoy greater flexibility
 Pains of Starting and running a business
 hard work, frustrations and setbacks.

4. Confidential
Are you ready to start a business?
1) Check the reality of starting a business
 To check your suitability to start a business, you must consider the
following realities you may face.
1. Unstable income
2. decrease the amount and quality of time you spend with your family.
3. your business viability and personal commitment is not strong enough
4. Postpone all personal goals
5. Must have exit strategy

5. Confidential
Are you ready to start a business?
2) The challenges of running a business
 Starting a business can be risky and rate of failure is very high.
 Seriously consider the following causes for business failure before you start
a business.
 Market potential, Capital, business plan, risk analysis, growth, location

6. Confidential
Are you ready to start a business?
2) The challenges of running a business
 Market potential : Many businesses fail because the market for their
products or services is too small to support them.
 investigate the size of the market,
 your competitors' strengths and weaknesses,
 your points of difference, and t
 he sustainability of demand for your product or service.

7. Confidential
Are you ready to start a business?
2) The challenges of running a business
 Capital : Many good business initiatives fail due to poor funding
 carefully consider your capital requirements
 You will need enough capital to sustain your business until it begins to break
even or consistently return a profit.
 Find out what funding might be required to start your business.

8. Confidential
Are you ready to start a business?
2) The challenges of running a business
 Business plan : Prepare a detailed business plan to help you set out clear
goals for sales, growth and expenses. Operating without a business plan
can cause a business to lose direction and exceed its budget.
 Risk analysis : list all your business and personal risks
 Financial, technological, intellectual property, product sustainability
(relevance over time), legal, safety, staff retention. machinery breakdown.

9. Confidential
Are you ready to start a business?
2) The challenges of running a business
 Growth : Plan growth carefully to give your business a much greater
chance of success. Some businesses expand too quickly, putting pressure
on their financial and management structures and damaging the quality of
their products or services.
 Location : You may struggle to attract customers if your business is difficult
to find, hard to access, and surrounded by competitors. Retail businesses
in particular require a prominent and easily accessible location.

10. Confidential
Are you ready to start a business?
3) Skills for business success
 Once you have decided that your idea could work as a business, you
should take the time to consider whether you have the necessary skills to
run your new business successfully.
 You need a variety of skills to run your business. You may not have all of
the necessary skills right now. To help identify areas that need
development, consider whether you have skills in the following areas:

11. Confidential
Are you ready to start a business?
3) Skills for business success
 effectively managing your team
 leading, training, motivating and mentoring your employees
 negotiating with employees and customers
 researching business ideas
 thorough understanding of financial reports and indicators
 financial forecasting and cash-flow management
 advertising and marketing your products
 winning new business and growing your sales.

12. Confidential
Are you ready to start a business?
4) Dealing with skills shortages
 If you don't have all of the skills you need to run and grow your business,
think about:
 outsourcing complex or time-consuming tasks
 recruiting the right staff to complement your own skills
 improving your own business skills and those of your employees to make the most
of the talents of your team.

13. Confidential
Are you ready to start a business?
4) Dealing with skills shortages
 How to improve required skills
 enrol in TAFE, university or other learning institutions, including online courses
 network with other business owners
 join industry associations relevant to your business to learn more about networking,
training and conference opportunities
 find a mentor with the Mentoring for Growth or Small Business Solutions programs
 subscribe to online business website alerts

14. Confidential
Are you ready to start a business?
4) Personal goals chart
 Make a list of your goals to help you identify whether you are ready to
start a business :
 which goals your business will help you achieve
 any areas of potential conflict (between personal and business goals)
 how you can eliminate or reduce conflict between your goals
 which goals are absolute priorities
 which goals you are willing to compromise.

15. Confidential
Are you ready to start a business?
4) Personal goals chart
 Create a list of your goals
Life area goals outcome Time frame Will your
business idea
help?
Personal
Family
Business
lifestyle
Community
spritual

16. Confidential
Q&A