What it's like starting a business during a pandemic
- 3 years ago
The 34-year-old barber decided to take on the lease of a small shop in East Geelong, about a five-minute drive from the waterfront.Regional Victoria was facing strict restrictions, but people could still get their hair cut. Behnam was prepared, and he saw an opportunity.
"At that stage, getting a haircut was one of the few things people in Geelong or the Bellarine could do to help themselves feel better," he says.
"You couldn't go shopping, you couldn't go out. You were basically just getting a haircut and doing online shopping.
"I decided to give it a go, because I knew that [the situation] might get worse, but I thought it was unlikely. And I'm so glad I did it."As Behnam found out, times of uncertainty can be a great time to start a business. But there are also risks.If you're thinking of starting a business, here are some things to keep in mind.
Plan as much as you can
By August, Behnam had spent almost a year carefully planning and preparing to start his business.He'd thought about the design of the shop, and the fit-out, and he had mirrors and barber chairs stored in his garage at home.
He also spent a long time looking at potential locations."When I researched opening a barber shop, I knew there were a lot of barber shops on the west side of Geelong, and there weren't many on this side.
"I thought it might be a great idea to open a barber shop on this side. And it's working."Hugh Bowman, a business coach based in Geelong, says it's also important to think about how you can attract customers and finance the business.
"You need to ask yourself if the market is big enough for you to succeed," he says.
Some questions Mr Bowman suggests addressing in your research are:
- Who are your customers?
- What is your expected profit margin? (In other words, how much profit will you make from each sale?)
- Is there a gap in the market?
- How will you differentiate your business from your competitors – what is your unique selling proposition?
- If you need staff, where will you find them
He hated being away from his family, and the work made him unhappy, so he took on an apprenticeship at a barber near his home."My parents were very supportive, because they could see me [struggling] during the two years in the mines," he says.
"I would come back home, and then in a couple of days I'd have to go back, and I was depressed and pretty emotional, and they knew mining wasn't something I was going to be able to do long term."
But in barbering, Behnam found his calling. "It has been rewarding. I can finally create a space and offer a service I was always dreaming of," he says.
"And when I see my clients are pleased with the service, it just feels great. It has been a good financial decision, too. I can see the difference in my bank accounts."
Think ahead about what could go wrong
While it's great to dream big, it's also important to think about what could go wrong.Some people find that while they really enjoy their trade or using their skills, they don't enjoy the other aspects of being business owner, like marketing.
"There's plenty of businesses [where] you can find yourself working very hard," Mr Bowman says.
"People complain about this all the time — they burn out after five years of working too much. They don't get a holiday, and there are personal and marital issues.
"Or they go into business for five years or 10 years, but they don't make much money. You can be a great builder, but maybe you haven't actually learned how to run a business."
Another potential problem can arise if you go into business with someone without a proper legal agreement, he adds. To protect his downside, Behnam used his savings to fund his shop, rather than relying on finance from a bank.He knew that even if he had to close his shop temporarily, he'd be able to get by.
"I know that apart from the rental and the bills, there are no other payments I need to worry about," he says.
Why Behnam isn't looking back
When planning his business, Behnam also thought about how he might expand.It's why he bought three barber chairs, rather than just one, even though he's currently working alone."I think I'm at the stage where I can easily accommodate the other chairs with other talented barbers," he says.
"I've achieved in three months what I was hoping to reach in a year. I'm pretty happy." And while going into business isn't for everyone, it's been immensely rewarding for Behnam.
Source: ABC
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