Or, can you just enjoy it as a hobby?”
You’ll need to keep your excitement
and energy up after the fun launch
party and congratulatory emails and
Facebook posts have stopped pouring
in.
Chrissy is equally pragmatic.
When you look at your start-up idea,
ask yourself: “Does this make money?
Is it
enough
money?”
Jo Allum is the publisher of this
magazine. In addition to seeing a fair
number of businesses start up and
shut down during her eight years in
this market, Jo’s husband also runs a
successful start-up. Her advice? “First,
ask yourself why you are starting a
business. Is it to keep yourself occupied
and bring in some holiday money
whilst still being able to be there when
your children need you? That is a very
different proposition from starting
and running a sustainable business
to provide for your family. The basic
premise, however, in both cases is the
same: you need a business plan that
stands up to scrutiny and shows how
the business will succeed.”
Kirsten adds, “What’s your
point of difference? Research is so
imperative. So many people [who are
starting businesses] aren’t thinking
beyond their own social circle.”
The expat community is small and
– perhaps surprisingly – quite price-
sensitive; what are you going to do to
reach the local and mainland markets?
And how will you pay for it? Jo
says, “You may think you will be able
to manage the start-up costs within
your normal household budget, but be
very sure you can afford to do this.”
Jo and her husband used their savings
to fund their business. For them,
that meant downsizing their flat and
cutting back on wine and holidays.
She adds, “There will be other
sacrifices – whether it be the loss of
a couple of bedrooms or no overseas
trips for a while, or not being able to
always pick up the children or tuck
them in at night. A business comes
with a lot of new responsibility and
takes a lot of your time. The impact
on the family has certainly been
the reason a few companies I know
have shut. That’s not a failure, just a
reassessment of what’s right for your
family at a particular time, but it can
still be disappointing and expensive.”
Kirsten says, “I wouldn’t start a
business as a vanity project. There are
very small rewards in the first three
to five years. If someone is looking
to fill time and boost their ‘worth’,
volunteer!”
“When it comes to the type of
business you should start,” Jo says,
“stick with what you know and what
you are good at – Hong Kong is
littered with failed restaurants and
bars started by investment bankers…
However, having children doesn’t
necessarily make you an expert at
running a business that deals with
children. But, if you genuinely love
what you are doing, the sacrifices are
easier. So use the skills that you have
acquired, ask advice, plan carefully, be
meticulous in financial planning and
cash flow projections, and be realistic
about the impact it will have on your
family life and free time.”
Ask yourself
Before you strike out on your own, ask yourself these questions from
management consultant Val Grubb.
• What are you good at?
• What do you like to do?
• How much money do you need to survive and thrive?
• How much working capital do you need?
• Who are your competitors?
• Who are your customers and why is your product/service essential to them?
• How are potential customers going to find you, and how are you going to
reach out to them?
• Who can offer mentoring advice?
Learn more at
.
February 2014
65
