Starting up your small business can be very rewarding and provide an opportunity to pursue your passions and how to go about turning it into a business. Here on this must-do checklist s are 8 steps to help get you started so you are more prepared.
- Find Your Business Structure.
Are you better off as a sole trader, partnership, trust or company? Each has its own advantages and comes with specific tax reporting responsibilities, regulatory necessities and work health and safety obligations and it all depends on what your offering. Three most common ones in Australia are:
Sole Trader: This structure is usually most appropriate when you’re a freelancer or running solo as it is inexpensive.
A Partnership: An association of people who carry on a business as partners or receive income jointly. Control or management is often shared, as are income and losses.
A Company: A legal entity and is regulated by the Australian Securities & Investments Commission (ASIC). Due to the complexity of this business structure and additional reporting requirements, it’s often more expensive to set up and manage. A key benefit of the company structure is that it can provide asset protection, but directors can also be found legally liable for their actions and potentially the debts of the company.
Head over to the Australian Business Register or talk to your tax agent/accountant on what suits you and future business needs.
image source: Consolid8
- Create A Business Plan.
Build a business plan which will help reach your goals and targets. Address thing like competitors, value proposition, customer base and budget up front to ensure you’re on good foundation.
Sample Business Plan Here.
- Your Funding’s.
If your business needs funding, discuss with your accountant the pros and cons of each option. The options can be banks, personal savings, personal loans or other options.
- Decide And Register A Business Name.
It’s very important that you make sure you can register your business name or company name before having business cards, letterheads, logos, websites and so on designed, and before getting a website URL. Go to ASIC Connect to search if your business name is available.
- Apply For An ABN.
If you’re going to be registered to collect GST (annual turnover of $75,000 or more), then you’ll likely need an Australian Business Number (ABN). To apply, visit the Australian Business Register. At the same time, if you’re opening a partnership, trust or company then it will need its own Tax File Number (TFN) from the Australian Tax Office (ATO), too.
The registration process you can do yourself, or you can hire an accountant or solicitor to help you complete your documentation and answer any legal questions you have.
- Do You Need Permits And Licences.
Visit business.gov.au to find out whether any national, state or local licences are required for your business.
7. Set Up Your Accounting Systems.
No matter how it is done, if an accounting system is set up properly from the very beginning and with future growth in mind, you’ll save an enormous amount of effort in the long run.
All levels of business have legal and tax obligations when it comes to record keeping. Some Suggestions are Quickbooks Online , Xero or MYOB. These will free up your time and make it less stressful when your doing your bookkeeping.
Also, setting up a business or separate bank account is a must when starting a new business.
8. Build Your Team.
Many small business owners get started doing everything themselves, but in the future you may consider hiring a team to support you. A part-time employee or a contractor may be enough to cover you at first. As your team grows, make sure that you have the right tools to manage operations and business security.
A lot goes into starting up your small business and can seem very daunting, but if you take step by step it will become easier and you will be well on your way to opening and operating your own small business. If you need to chat, please feel free to contact us.