Whether you are thinking about starting a business in mining and resources or you already have a business in this sector, there are FIVE key questions you need to be able to provide definitive answers for, either BEFORE you start your business or during REGULAR REVIEWS to ensure your business remains relevant and positioned for sustainable success. But first, let’s talk about preparation.
The truth is, many people go into business focusing only on the opportunity, believing that a skill or service they are good at, coupled with hard work and enthusiasm, will be enough to build a successful business.
In my experience, business owners would be wise to take the long view of what it takes to be in business, by getting professional advice before starting and focus the excitement of a new venture into a proper plan. The foundations necessary for success include anticipating set-backs; and knowing your obligations in advance will mean fewer fires to put out once you are in the thick of building your new business.
These matters will include complying with industry regulations, tax obligations and employment law, among other things. While these administrative matters may seem a drudge when you are eager to get your business started, working through them now will help you avoid the often-costly consequences of non-compliance. It will also provide business insights that will help you create a well-prepared start up, capable of maturing into a strong business.
Being prepared also means making adequate provision for your internal infrastructure so that you have efficient procedures for keeping the necessary records, collecting moneys earned and managing the business cash flow. Business systems don’t necessarily need to be expensive or complicated, but they must enable your business operations to run efficiently, cost-effectively and to grow.
So, with all that in mind, here are the FIVE key questions you need to be able to provide definitive answers to BEFORE you start your business, and then REGULARLY reviewed as your business matures to ensure your business remains relevant and on track for continuing success:
- What is the business opportunity and where will my customers come from?
- Do I have the right structural and legal arrangements in place?
- What regulations do I need to be aware of?
- What are the costs of supporting the operation (and myself) before the business is profitable?
- What should my internal infrastructure look like (accounting software, internal systems and programs, operations and sales staff)?
Giving your full consideration to each of these questions will provide a clearer understanding of the range of factors involved in establishing and being in business for the long haul.
For example, defining how the activity you offer translates into business that can be sustained will highlight your strengths, expose any weaknesses and enable you to identify opportunities and make any adjustments to meet your market.
You should also be able to articulate your point of difference that will drive your business success, while the systems you have in place will enable you to know when you are successful.
You’ll need specialised advice
We provide advice for mining and resources business owners so they may be financially organised, commercially competitive and successful. We understand the complexity of business environments in multi-site operations that may be geographically remote and/or overseas.
Our overarching goal is to make a positive difference. To achieve this, we readily collaborate with other specialised professionals at Resources Unearthed – lawyers, financial advisers, property advisors and others– to support your start-up or growing business.
We have developed three clear elements to enable business owners in mining and resources to achieve financial confidence and success. We help you to get the numbers right, apply financial insights to develop strategy for maximising growth and offer specialised advisory services necessary for achieving your goals.
If we can clarify any of the matters outlined here, or if you have any other questions about your mining and resources business, please don’t hesitate to contact Resources Unearthed on 61 (0)7 3007 2000 or contact@resourcesunearthed.com.au
Resources Unearthed is a solutions hub that provides integrated financial, legal and business advisory services for executives, professionals and business owners in the mining and resources sectors.
The information contained here is general and not intended to serve as advice. Any information supplied is not a substitute for independent professional advice. We do not warrant the accuracy, reliability, completeness or adequacy of the information or material. All information is subject to change without notice.
