20 tips to start a Business (Part 1)

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 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 take more than just luck- there 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 stills 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 way not also this 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 is plenty of options out there to help with your start up of your business from webinars, start up events, networking groups to name a few.

Tip #5: Naming your business

This can be some what 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 effect 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 stop 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 business must withhold 49% from payments they make to you for tax purposes
• Australian Company Number (ACN) Required for Companies
• Goods and Services Tax (GST)- Reqired for most business and is compulsory if your has 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 same 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 an the manual or electronic version, it is an good idea to get some general advice before you start.