Many of us have dreamt of taking the big step to become our own boss. The thrill of building your own business is a challenge that many of us will face throughout our business lives. We see many businesses that succeed and others that fail. Those that do fail usually have key characteristics that have contributed to their down fall.
Here are some steps that should be considered..
In order to be successful with your business this simple statement holds true, “If you fail to Plan, youPlan to fail”. The key to any success start up is planning. We thought we’d provide you with some key tips and hints relating to issues to be considered when you’re looking for information on how to start a business. Below are steps and advices that should be considered.
-
Planning, Planning, planning (this will be a common theme)
-
Find a good business advisor, your accountant/business advisor will be your best ally when it comes to start your new business
-
Develop a business plan – get professional assistance to do this. A good business plan will look at all facets of your business idea (product, price, strengths, threats, weaknesses, opportunities, financial etc)
-
Decide on a structure for your business. Structures available are:
Sole Trader – where business is legally and beneficially owned by an individual in their own name. Partnership – involves business being shared between two or more parties. Partnership agreement is prepared which governs the operation of the business. Partners can be individuals, trusts or companies. Trust – great for asset protection in that they offer greater flexibility for income distribution and protection of business assets. Company – one of the most common business structures as a company is a separate legal entity, meaning that it holds assets and liabilities in it’s own name, pays tax in it’s own name. Benefit is that liability of shareholders is limited to amount of unpaid share capital in company.
To give you an overview of the process, here’s 20 steps that you should follow when you want to start a new business:
-
Consider your own personal structure in addition to your company structure. Establishing the correct structure at the outset can lead to considerable tax savings if you are ever to sell your business in the future.
-
Decide on a business name.
-
Protect your business name and idea. You may consider registering a trademark to protect your multi-million dollar idea.
-
Review your working capital requirements – this is one of the biggest reasons why many small businesses fail within their first 2-3 years of operation. Work with your advisor to determine what these requirements are prior to commencing the business.
-
Plan, Plan, Plan, Plan…
-
Be sure that your business idea is designed to provide you with an asset and no merely a job. Why take on the stress and risks if you could work for someone else for the same net benefit.
-
Find a business premises – be sure to have any lease reviewed by a solicitor prior to signing.
-
Get phone numbers, email, postal addresses etc sorted.
-
Identify requirements for plant and equipment, computers, furniture etc for your business. Where possible lease equipment to protect your valuable working capital and cash.
-
Identify insurance requirements for your business. Engage an Insurance Broker to identify needs and to find the most competitive insurance rate for you.
-
Identify Human Resource requirements if looking to employ staff. Be sure to set up systems and processes in relation to your HR.
-
Identify required business registrations including GST, ABN, TFN, PAYG Withholding, Workcover.
-
Get your IT sorted – This will be the most critical part of most business so getting it right is critical.
-
Install an internal accounting system for your business, you need to be able to have a reliable system to track invoices, bank account transactions, debtors, creditors, GST, Wages, Superannuation.
-
Register appropriate domain names etc for your business.
-
Develop trade terms for your clients and your invoices.
-
Review your performance to budgets.
-
Plan, Plan, Plan, Plan…
-
Regularly meet with your business advisor to discuss the performance of your business. It is a chance for you to pull yourself out of the business to work on it, rather than in it.
-
Develop clearly identifiable goals for your business. Stepping stones for the achievement of goals.
No business start up is the same so it is important to get advice from the outset when you’re looking to find out how to start a business. At HTA Advisory your initial meeting with us is complimentary so it is a chance to bounce ideas around to see if your dream can become a reality. We have developed many tools to make the daunting process of setting up your business the right way a little easier and will be with you every step of the way. If you have any other ideas on how to start a business, then we would love to hear them, so please leave a comment below.
