Best Way to Grow a Small Business in Perth, Western Australia (Hire a Consultant?)

LMcMoots on 09/01/2021 - 20:26

Greetings, everyone.

My mate has recently started his own small business in the Home Improvement sector (currently only him and one other guy), and he is interested in me coming on board and helping grow the business.

I have a lot of experience in sales and some experience in internal management roles within other companies I have worked for, but when it comes to creating a business plan, marketing, etc. I am pretty green.

His background is purely as a tradesman and he is not the most computer literate person in the world, so that is probably why he wants me to handle that side of things, with him making the final decisions of course.

A lot of his current workload is subcontracting as an installer for some of the larger, more established companies in the same industry; when doing his own work he still has to purchase the products through one of these companies and add his mark-up, etc.

He is hoping to eventually grow the business to a size where we have our own factory and manufacture the products directly, hence cutting out the middle man.

He has already had a basic website created with a Contact Us form and links to Facebook and Instagram pages (I don't use social media personally, but I understand how vital they are for small businesses).

I have been looking into hiring a Small Business Consultant / Coach, but there are so many people out there offering different services that it is a bit overwhelming, and we do not have the budget to waste money on the wrong person / service.

I have also noticed that some companies work in Western Australia only, while others work Australia wide and some even work internationally; I feel like someone who only deals with Western Australia would be the better choice due to understanding our market, but I could be completely wrong.

I would really love to hear from anyone who works in business consulting / development and also small business owners who have successfully grown their own business on how they accomplished their success and what they would recommend.

Any help would be greatly appreciated, as apart from helping my friend I also believe that this could be a great opportunity for me, and I could definitely use a little bit of success at this time in my life (COVID-19 aside last year was still the worst year of my life).

Neither of us have friends who have started their own business, and obviously asking the owners of the companies he subs for is out of the question, plus I feel that we will need more direct assistance than just a bit of advice here and there.

Thank you all for taking the time to read this, regardless of whether you can help or not, it is still appreciated.

Education & Work

Comments

  • holdenmg on 09/01/2021 - 20:54
    +4

    Hi,
    There are some inexpensive small business workshops
    @ https://www.smallbusiness.wa.gov.au/workshops?tid=All&field_…
    e.g. Website Planning, Marketing your Business, How to Write a Business Plan…
    so maybe he or you could go along…

    • frondono on 10/01/2021 - 11:30
      +1

      They also will be able to provide all the answers and advice you will need. They have a lot of good resources. Could be some grants available too.

    • McMoots on 31/01/2021 - 20:41

      Thank you for the links; we will definitely check them out.

  • TheBird on 09/01/2021 - 22:44
    +3

    He is hoping to eventually grow the business to a size where we have our own factory and manufacture the products directly, hence cutting out the middle man.

    I see a lot of businesses try doing this only to end up shooting themselves in the foot. The problem is scale, speciality and spreading yourselves too thin. To set up your own factory it adds a lot of up front and ongoing costs. It may lead to extra profits during the good times, but it can quickly become a noose around your neck in the downturns.

    Usually when you find companies in the mid 7 figure range, it shifts, so you start to have scale and lowering costs is worth the risks.

    I have been looking into hiring a Small Business Consultant / Coach, but there are so many people out there offering different services that it is a bit overwhelming, and we do not have the budget to waste money on the wrong person / service.

    Don't. Just don't.

    Those who can, do. Those who can't, teach. Those who can't teach, consult. It isn't always that way, but you're not going to be able to hire the consultants you need if you're on a budget. You're only going to be able to hire someone who can get you into trouble.

    Home Improvement sector

    Is that a fancy way of saying a builder?

    It's hard to give you a worthwhile push in any direction without knowing more about what this business does and the (goals/needs/strengths/weaknesses/issues they're having) of the current owners?

    That being said, if you don't want to disclose any information, in a service based industry, it's typically all about maximsing perceived value. Your value proposition. Some of the best ways to do that is to position yourself in a market that sets you apart from your competition through exploiting your competitive advantage (basically strengths but can be other things) and mitigating your disadvantages.

    Neither of us have friends who have started their own business, and obviously asking the owners of the companies he subs for is out of the question, plus I feel that we will need more direct assistance than just a bit of advice here and there.

    Most people don't know. Ask a hundred blind people how to see and you won't get a useful answer.

    Usually it's a mindset that sets the successful from the rest. I know it sounds like bulls**t but that's been my observation.

    If you want to talk more, let me know.

    Good luck.

    • McMoots on 31/01/2021 - 20:46

      Thank you for the information and guidance you have provided; you definitely sound like you know what you are talking about.

      I wanted to send you a PM but it says you don't accept them?

      Could you please send me one when you have time so that we can talk more.

      Cheers.

      • TheBird on 01/02/2021 - 12:07

        I didn't even know the site had PM system. I switched it on, so feel free to PM.

  • TheBird on 09/01/2021 - 22:49
    +1

    I have a lot of experience in sales and some experience in internal management roles

    One more thing… The sales experience/ability is what typically brings a small business into the medium business range. Sales is the lifeblood of most businesses, but it does depend on your business itself. No point in selling lots if the business can't scale to fulfill those sales.

  • Muzeeb on 09/01/2021 - 23:12
    -4

    Best Way to Grow a Small Business in Perth

    Move it to Sydney

    • spackbace on 09/01/2021 - 23:56
      +1

      And then have to close it due to a lockdown 😉

  • SBOB on 10/01/2021 - 06:39
    +2

    already had a basic website created with a Contact Us form and links to Facebook and Instagram pages (I don't use social media personally, but I understand how vital they are for small businesses).

    Having just done some renovations, social media profiles (Facebook) and recommendations from local Facebook groups and Gumtree was how I found all local tradies.

    If you have a social media presence (allowing customers who refer you to link to your profile) with continual updates, photos of work, customer reviews, a decent webpage with similar, you're well on these way to having the basis of how many customers find you these days.

    The last hurdle is responsiveness. Check your email and social messenger posts regularly and consider them as high priority as a phone call with regards to leads and providing information or quoting opportunities.

    • McMoots on 31/01/2021 - 20:46

      I definitely agree with you there, and I'm trying to make the same points to my mate.

  • Third_Gear on 10/01/2021 - 08:26

    Cant give any helpful advice without knowing what the actual business is.

    • McMoots on 31/01/2021 - 20:47

      We install uPVC Double Glazed Windows and Doors.

  • marcusv on 10/01/2021 - 11:00
    +1

    I started a marketing business in Perth during COVID after being stood down from my regular work. It can be daunting, particularly in the setup stage.

    Before launching straight into growing the business I would ensure everything is set up correctly. If you haven't already, it is very worthwhile engaging the services of a good accountant to ensure the business is structured correctly in terms of ABN, business registration, invoicing, bank accounts, trusts etc to minimise tax implications and admin headaches.

    Once all this is set up you can then look at your branding, marketing and position in the Perth market. Feel free to PM me more details and I would be happy to point you in the direction of a good accountant and useful advice.

    • McMoots on 31/01/2021 - 20:47

      I've sent you a PM.

  • ilikeradiohead on 10/01/2021 - 17:07
    +1

    Get your mate to take a look at the business model canvas. This should give him a framework to think about what he is selling, who his competition is and who his customers are.

    • McMoots on 31/01/2021 - 20:48

      Great advice; thank you.

  • McMoots on 18/01/2021 - 14:32

    Thank you to everyone who has commented and please accept my sincere apology for not responding sooner.

    I've had quite a serious and severe personal issue occur which has taken up all of my time, energy and focus.

    I will attempt to reply to and / or private message everyone over the following week.

    FYI, the business supplies & installs uPVC Double Glazed Windows and Doors.

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