Before we start with logos, branding or stock—it is very important to prepare yourself that your idea is going to be a viable business. The following 20 tips will help you get your business up and running from that idea to a possible business.
Tip #1:
It’s important to consider whether you really understand what’s involved and whether you’re suited to business and self-employment. Start by asking yourself these questions:
- How do I choose a business name?
- What skills do I need to start a business?
- What are my business goals, objectives and skills?
- How much income will my business need to generate?
- Is this a business or a hobby?
- What are the advantages and disadvantages of starting my own business?
- Have you written your business plan and marketing plan?
Tip #2: Business Plans
Sit down and do a business plan for the business you have in mind. It doesn’t have to be perfect the first time round but writing down your thoughts on paper can be beneficial in this early stage of setting up of the business.
- A business plan can help
- set out your business goals
- decide who your customers are going to be
- set the direction of your business
Tip #3: Right qualifications
To become a successful business, it takes more than just luck—there are a number of main ingredients you will need.
Ask yourself:
- Do I have the skills to undertake this type of work?
- Do I have the support I need to help run this business?
- Do I need to train myself for the skills required for the business?
- These are just some of the things you should be asking yourself before you start your business.
Tip #4 Advice and Support
We all need help with our personal lives, so why not also for your business?
Whether you are wanting to be a brickie, health and safety adviser, or running a market stall—if you are starting up a business, it is important to receive the advice and support you require.
There are plenty of options out there to help with you start up your business, including webinars, start-up events, and networking groups to name a few.
Tip #5: Naming your business
This can be somewhat difficult to do—what do you call your business?
You will also need to make sure that your dream name is available before you start hiring or design your webpage, business cards, etc
Tip #6: Business Structure
Deciding on the type of business structure is an important part of the start-up process. The type of business structure you have for your business can affect the type of reporting requirement you have, the type of licences you need and the amount of taxes you pay.
The 4 major types of business structures available are
- Sole Trader
- Partnership
- Company
- Trust
Tip #7: Licences, Permits and Registrations
Dealing with the Government is time-consuming but you don’t have to make it harder than what it has to be on yourself.
To find out what licences, permits or registrations you require to run your business legally, the first step would be the ABLIS (Australian Business Licence and Information Services) webpage.
Tip #8: Register for an ABN
Q. What is an ABN (Australian Business Number)?
A. It is an 11 digit number required to operate a business here in Australia.
If running your business in a company structure, the ABN is different to the ACN (Australian Company Number). To apply for an ABN, you must be carrying on a business with a view of making a profit to qualify for an ABN.
Tip #9: Taxes
That dreadful word we all hate but it is important that you get this correct from the start-up date of your business to avoid a bill or fine in the future.
Not all business are required to register for all taxes—this will depend on your annual turnover and whether or not you are employing staff.
Some of the taxes that a business might need to register for include:
- Tax File Number (TFN)—Required
- Australian Business Number (ABN)—Recommended. If you do not register for an ABN, other businesses must withhold 49% from payments they make to you for tax purposes
- Australian Company Number (ACN)—Required for Companies
- Goods and Services Tax (GST)—Required for most business and is compulsory if you have a gross turnover of $75,000 of more
- Pay As You Go (PAYG) withholding. You must register for PAYG withholding if you withhold an amount from a payment for tax purposes
- Payroll Tax—Required in certain circumstances
- Fringe Benefits Tax (FBT)—Required in certain circumstances
- Fuel Tax Credits
Tip #10: Record Keeping
Start your record keeping from day one and this will help save you time and money further down the road.
Keeping records doesn’t have to be hard but it does need to be accurate. Whether you choose the manual or electronic version, it is a good idea to get some general advice before you start.
