Are you up to running a small business?

One of the scariest business decisions Sandra Seah has ever made was to go “all in” on her chilli oil brand, Six-Eyed Scorpion.

The former Melbourne chef was in a position many entrepreneurs dream of - realising her side hustle had the potential to transform into a full-time business.

Her chilli oil recipe had gained a solid fan base ever since she’d started cooking for neighbours during pandemic lockdowns. Soon enough, Seah was being approached with more opportunities to grow the product than she could balance while also working a day job.

Six-Eyed Scorpion chilli oil is stocked at more than 150 locations throughout Victoria alone, with further expansions into NSW and South Australia soon to come.Credit: Brody Bloom

But taking the leap and spending tens of thousands of dollars on manufacturing equipment and a kitchen space takes nerves of steel.

“That moment was when it was like, ‘It’s all or nothing now, I can’t really go back,’” Seah says. “I’ve bought all the stuff, I’ve spent all my money on it. You can’t retract it because you have invested so much.”

Every year, hundreds of thousands of Australians like Seah take the plunge into business. In 2023, there were more than 406,000 business entries, according to the Australian Bureau of Statistics.

But getting started is the easy part. Surging business failure rates serve as a reminder that creating a sustainable company is tough.

“Making sure something is a successful and growing business rather than just an expensive hobby is hard,” Seah says.

Over the past two years, Six-Eyed Scorpion has had to work out how to grow while also facing rising freight and materials costs thanks to the inflationary environment.

Six-Eyed Scorpion founder Sandra Seah.Credit: Jordana Adams

The business has gotten to a point where its products are stocked at more than 150 locations throughout Victoria alone, with further expansions into New South Wales and South Australia soon to come.

Six-Eyed Scorpion’s success has allowed Seah’s partner, graphic designer Jordana Adams, to also come on board the business full time from this month, after helping shape the company’s brand identity.

Seah’s experience as a business owner so far has shown the importance of problem-solving and careful planning of everything from ingredient purchases to digital marketing.

“I think I’ve come to the conclusion that you are going to be facing challenges, 24/7 - but you just get better at solving the problems. You should be willing to learn, to do the things you don’t want to do, and have a point of difference.”

Don’t sleep without a plan

BDO Australia partner Mark Pizzacalla says if you want to run a successful small business, you must be willing to “do the work” and navigate countless obstacles.

“There are going to be plenty of problems - so get used to it,” he says.

Once you’ve accepted that fact, it’s time to ink a bona fide business plan that nails down some of the most basic questions about your operation.

“When someone leaves their job [to start a business], what are they actually going to be doing on day one?” Pizzacalla asks.

BDO Australia partner Mark Pizzacalla.

A business blueprint should account for market research, a plan for business development and an answer to the ultimate question for any company: where is the revenue coming from?

“If you don’t have revenue, you don’t have a business.”

Founders also need to decide on the best structure for their company and work out how much cash they will need to run things. “Have you saved up enough to do this? What sort of capital injection do you need at the start?” Pizzacalla says.

Prepare to board the emotional rollercoaster

Small business mental health expert Leanne Faulkner says successful founders must also have a plan for their own wellbeing.

“Right at the start of establishing a business, you have to have a self-care strategy in place, even if you never use it,” she says. “Ahead of time, plan the sorts of resources you might go to and call on to help you when times are tough.”

Mentwell founder Nikki Williams says aspiring business owners need to be ready for the highs and the lows.

Founder of health gift card business Mentwell, Nikki Williams, says emotional resilience is one of the most important skills you need in business.

“There’s a certain kind of risk taking that happens as a founder that not everyone has the ability to do. I don’t blame them,” she says.

Williams founded Mentwell in 2023 with the goal of helping more Australians access health and wellbeing services. The platform lets businesses and individuals buy gift cards that recipients can use at any health service provider in the country, from psychologists to yoga studios.

Mentwell recently raised $229,000 to expand the business via equity crowdfunding platform Birchal. The raise was a success, but Williams says it also served as a reminder of the hard work and emotional extremes that you must face when growing a company.

“Every day was literally a high or low on the rollercoaster ride,” she says.

“I was either extremely excited, almost to the point of not being able to hold that excitement, through to some really low periods of wondering if we were going to make our minimum amount.”

Founders need to prepare for those highs and lows, she says. “You can’t really know it until you’re in it, to be honest. But you can get better at it, for sure, and you do get used to it.”

Next in the series: Why a great idea doesn’t guarantee business success.

This story was created in partnership with Google. The content is independent of any influence by the commercial partner.