Bill Lang radio interview on 3AW with Tony Moclair
In this insightful radio conversation, Tony Moclair engages with Bill Lang, Director of Small Business Australia, discussing the rise of entrepreneurs under 40. Lang emphasizes the positive impact of young adults venturing into business and the advantages of informed ignorance in entrepreneurship. The discussion delves into the role of technology, the challenges posed by regulatory frameworks, and the significance of relationships in small business success. Bill Lang provides practical advice for aspiring entrepreneurs, highlighting the importance of seizing opportunities and fostering customer loyalty. A valuable dialogue for those navigating the dynamic landscape of small business, offering guidance and encouragement for the next generation of entrepreneurs.
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Radio transcript.
Tony Moclair
Well, they’re with me on the line now is Bill Lang, Director of Small Business Australia.
Bill Lang
G’day Tony.
Tony Moclair
Bill as a barometer of economic activity, people under 40 starting businesses, it’s it’s a real roll of the dice. You don’t know what could happen. Is it a good sign?
Bill Lang
Oh, look, it’s it’s great news. And I think we should have great sense of optimism about the future that, you know, we’ve got young people that have been out working for a while and become young adults and throwing their hat in the ring at you know, having a go at having their own business and you know, these incredible benefits for them and for all society, Tony.
Tony Moclair
To what extent is in terms of life experience, ignorance, bliss, if you’ve never started a business before you don’t know the obstacles or the pitfalls, is it a good thing to be, let’s say ignorant?
Bill Lang
Well look, I think, let’s have probably informed ignorance is doing some basic research. But of course, until you get out there and put it in front of customers, you won’t really know whether customers are going to buy it. So in some cases, you’re being totally ignorant. Not a great idea but informed ignorance and having a go of good thing.
Tony Moclair
Technology makes it possible, doesn’t it?
Bill Lang
Absolutely. And these days, you know, for very low costs and sort of you know, paying as you go you can get a website, you can do some digital marketing, you can test some ideas. Whereas several years ago that would be costing you 10s of 1000s of dollars just to get a website built so that the costs of getting going and trying are the lowest they’ve ever been. And, and now we’ve got access to customers all around the world, Tony, if they’ve got the internet, now they’ve got the potential to be a customer.
Tony Moclair
So in terms of satisfying those customers and shipping to them, how much does the large, massive, immovable regulatory state stand in their way?
Bill Lang
Look, I think it varies from country to country, and in some cases, you know, within countries. Now, this is sort of an area where, look, if you can’t get across all of the regulations that are out there, you know, sort of question whether any politician can actually tell us what they’ve got in place. There’s no doubt there’s too many of them. But, you know, get going. And, you know, as someone who was taught by the Christian Brothers, in some cases, rather than sort of seeking permission, says ask for forgiveness Tony.
Tony Moclair
Yes. Good advice. All right. And if you don’t seek forgiveness in this life, there’s always the next I’m sure they told you that to Bill. How long does it take, for the average small business started by somebody under 40, to turn a profit,
Bill Lang
I’ll look at that very much varies Tony by the industry, the location, what the costs are, that you’ve actually got. So you know, at the end of the day, you know, profit is revenue, exceeding cost, and ideally generating some money for the owner to live on and to generate a return. So it varies a lot. But look, you can get a very small business going and throw your hat in the ring online and doing some online retailing, you know, for literally under a couple $100 a month and yeah sell a few items and make a 50% margin and you could be profitable within three or four months.
Tony Moclair
What would be your advice, your director of Small Business Australia, your advice to somebody in their 20s with a smartphone or a computer, and an entrepreneur, an entrepreneurial urge, what would you advise Bill?
Bill Lang
Look, I reckon the first thing is, have a look in your, if you’re living at home having a look in your bedroom, or have a look around the house, what’s there that no one’s using and get something on eBay or get on a Facebook group and have a go at selling it.
Tony Moclair
Yep.
Bill Lang
So start, start learning about promotion, selling, you know, dealing with customers, dealing with the general public. Very easy to get going. And then every time you interact with a business to say to yourself, how could this be better? How could this business be improved? And you know, what, do the business owner a favour and make a positive, proactive, constructive suggestion because we want every small business to do better and to survive and thrive?
Tony Moclair
I saw one, one young entrepreneur was talking about the size of their business. And she said, we don’t have a marketing budget so relationships are key, can you just expand on that?
Bill Lang
Yeah look, the most valuable asset in any business are loyal customers. And the way to think about customers, if they’re loyal is they stay, say and pay. So they keep buying from you. They say great things about other people, about you to other people that give you positive reviews, they review you. And they’re quite happy to pay a premium. So you know, and it’s about relationships. And technology can’t really have relationships with you, people have relationships. So the entrepreneur is spot on Tony.
Tony Moclair
Good work. Thank you for your time this afternoon, Bill. Bill Lang, Director of Small Business Australia
