David Salter, founder and director of the boutique translation company Linguistico, talks about his journey from solicitor to business owner.
Any ex-lawyer wanting to start their own business venture should easily be able to organise business essentials such as registering and protecting a trading name, buying a computer, software, printer and fax machine, organising stationery such as letterhead, business cards, invoices and balance sheets, and of course having a website with email. They might also know the growing importance of Twitter and Facebook to business enterprises.
But many aspiring entrepreneurs, even ex-lawyers, often fail to properly research their relevant markets.
Researching your vision
“Before I even approached the market with my idea,” explains David, “I spent six months doing full-time research into the translation industry. My research showed me what I needed to do and how I needed to do it, the types of work Linguistico would need to undertake, the languages we’d need to work in and whether there were any competitors in the Australian or, because of its similarities to Australian legal practice, English markets.”
Before trading, you need to have a clear idea how you’re going to develop, price and market your products or services; whether you need to base your business close to competitors; if you need start-up capital, a loan, approved overdraft or credit card; and how you’ll manage cash flow. An analysis of the current market conditions and competitors can give you the answers.
“But I don’t necessarily believe in writing a detailed ‘business plan’. Sometimes I think you can get side-tracked by spending too much time writing a business plan, whereas just getting on and doing the research can be more productive.”
“Also, where we are now is so completely different to where we were when we first launched Linguistico that a fixed, formalised document would not really have helped us.”
Researching contacts
Research can also tell you what kind of business partner(s), if any, you’ll need. Who will set up your IT systems, who will complete the ATO’s e-records and who will find new clients? What skills are you missing and what roles need to be filled in order to give you a viable business?
“Researching contacts, partners and suppliers is very important so I spent a lot of time building up relations. I had lots of open and frank discussions with translators already working within the industry so they could tell me what they did and didn’t like about translation agencies. This enabled me to eradicate any such grievances from our practice, before they even arose.”
To ensure you have all your bases covered you could consider consulting an accountant or professional business adviser and there’s plenty of advice on the internet (see www.business.gov.au or www.ato.gov.au). Contacting knowledgeable friends and family is a good idea too. As a lawyer, you may already have a number of contacts able to offer you free advice.
“I had a group of friends who I’d met during legal practice, all of whom could offer me good advice. They worked in accountancy, insurance and marketing, as well as in general commercial businesses. I formed a sort of an unofficial board!”
“My wife was also very supportive. Coming from a legal background herself, she came up with lots of ideas and has been an integral part of our success – without being paid a cent! I couldn’t have done it without her.”
Development research
As most business owners soon discover, there is clear difference between working in the business (such as completing the day-to-day administration and finances) and working on the business (such as seeking out new business and promotion). If you spend too much time working in the business, and not on where your business needs to grow, the development of your business will plateau.
“If you don’t keep your systems and research up-to-date,” David warns, “you run the risk of being reactive to your business rather than proactive about its growth. You need to be able to anticipate your clients’ needs, not just respond to them. Otherwise you won’t have the staff or resources in place to service their needs when they arise and the quality of your client service will suffer.”
You always need to know when the business should push forward into its next stage of growth and what the goals of that next stage will be. David recommends always having a clear vision as to where your enterprise will be within three months, six months and twelve months, and then within three years and five years.
“In five years’ time, our vision is that Linguistico will be the chosen supplier of translation services to the legal and insurance industries in Australia and the UK, and at the forefront of English-speaking lawyers’ minds when they think of translation work. This will require a combination of consistently high client service, marketing and continuing to develop our business to match the needs of the market.”
ÞNext time, David talks about building a reputation and what it’s really like to aim high.