Five things to think about before starting a business

I was asked some questions for Kirsty Dunphey‘s newsletter so I thought I’d share some of them here too.

What five pieces of advice would you give to someone wanting to start their own business?

1. Know the difference between a hobby and a business – what is the market size for what you are planning to launch?

2. Love what you do and do what you love – if you love what you do you will never have to work another day in your life.

3. Systems will set you free (1% idea – 99% execution).

4. Understand cashflow. There is no business without cash in the bank – even if you are making a profit on paper. Business models evolve over time.

5. Have a clear vision of what is your noble cause – you’ve got to know where you are going to make the first step. How do you want to make the planet a better place?

If you can operate from love and passion anything is possible.

“Companies either operate from the fears of the ego or the love of the soul.” – Richard Barrett.

Naomi Simson is considered to be one of Australia’s Best Bosses. An employee engagement advocate, she practises what she preaches in her own fast growth business. RedBalloon was named as one of only 13 BRW Best Employers in Australia in 2012 for four years in a row with an engagement scorecard of over 90% in each of those years – the average in Australian businesses is 54%.

One of Australia’s outstanding entrepreneurs, Naomi regularly entertains as a passionate speaker, a blogger and a published author, most recently publishing Five Thanks a Day. She has received many accolades and awards for the business she founded, RedBalloon.com.au including the 2011 Ernst & Young National Entrepreneur of the Year – Industry.